Devices & Platforms

Smartphone shipments fall 7% as memory crisis drives up prices

Smartphone shipments fall 7% as memory crisis drives up prices

Global smartphone shipments fell 7% year-on-year in 2Q26 as the ongoing memory shortage pushed up device prices and weakened consumer demand.

According to FDM CCS Insight, average smartphone selling prices rose 13% quarter-on-quarter as manufacturers passed higher component costs on to consumers and shifted towards more premium devices. The research firm expects the primary smartphone market to decline 12% in 2026, with further price increases expected in the second half of the year.

“The first half of the year proved more resilient than expected. However, we remain cautious about the second half, as further price increases and prolonged memory shortages - which we expect until 2028 - will continue to raise device prices and soften consumer demand,” said Ben Hatton, analyst at FDM CCS Insight.

The impact has been particularly pronounced in emerging markets, where price-sensitive consumers are delaying purchases or turning to refurbished devices. Apple was the only major manufacturer to maintain stable pricing in the first half of the year, although FDM CCS Insight expects it to raise prices in the coming months.

The organised secondary smartphone market grew 3% in 2Q26, as shortages of new devices pushed more consumers towards refurbished handsets. However, supply constraints also limited the availability of used devices, particularly as the US reduced trade-in requirements.

FDM CCS Insight expects the organised secondary market to grow 9% in 2026, although this is below its previous forecast due to continued supply constraints.

“As new devices become progressively more expensive, a growing number of consumers will seek alternatives in the secondary market,” Hatton said, adding that improved trade-in programmes will be critical to meeting demand.



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