Global smartphone shipments are projected to decrease by 0.9% in 2026 due to increased memory chip prices, pushing average selling prices to record highs, according to IDC. In 2025, shipments grew by 1.5% to 1.25 billion units, led by Apple’s strong performance and a China rebound.

Apple is expected to have a record year in 2025, with a 6.1% increase in shipments to 247 million units, driven by demand for the iPhone 17 series. In China, iPhone 17 demand pushed Apple’s market share above 20%, prompting a 3% shipment growth forecast for the region in 2025.

Global iPhone revenue is expected to surpass $261 billion in 2025, a 7.2% increase from the previous year. The 2026 downturn is attributed to component shortages and Apple’s decision to delay the next base iPhone model to early 2027, leading to over 4% decline in iOS shipments.

The ongoing global memory shortage will impact supply and raise costs, affecting low-to-mid range Android devices the most due to their price sensitivity. Despite a decrease in units, average selling prices are forecasted to rise to $465 next year, elevating the market’s total value to a record $578.9 billion.

IDC predicts a challenging year ahead for the industry, but still believes the market could achieve record average selling prices. Vendors are expected to adjust portfolios towards higher-margin models to offset rising costs, potentially leading to price increases for consumers.

Read more at Yahoo Finance: IDC sees global smartphone shipments dipping in 2026 as memory costs bite