NEW DELHI — Global smartphone system-on-a-chip (SoC) shipments declined 8 percent year over year in the first quarter of 2026, as a prolonged memory shortage disrupted supply chains and slowed product development, according to a report released Friday by Counterpoint Research.
The ongoing shortage of memory components is affecting both smartphone makers and chip suppliers, forcing companies to streamline product portfolios and delay new launches.
The premium smartphone segment has remained relatively resilient, with manufacturers largely passing higher costs on to consumers. In contrast, entry-level device makers are increasingly turning to lower-cost chipsets to keep prices competitive.
Among major chipmakers, Qualcomm and MediaTek posted double-digit shipment declines, while Apple, Samsung, Google, and UNISOC recorded growth. Analysts attributed the gains by Apple, Samsung, and Google to their more integrated supply chains, which have helped them better manage the impact of the memory crunch.
“Qualcomm was expected to benefit from premiumization, but the impact was limited due to Samsung’s Galaxy S26 series using both Snapdragon 8 Elite Gen 5 and Exynos 2600, along with softer demand for the Xiaomi 17 series,” said Shivani Parashar, a senior analyst at Counterpoint Research.
MediaTek faced greater pressure in the entry-level segment.
“We expect many OEMs will shift to UNISOC chipsets to reduce costs. At the same time, weaker growth in the mid- and premium tiers, coupled with the delayed launch of the Dimensity 9500+, further weighed on MediaTek’s performance,” Parashar said.
Memory prices surged 50 to 55 percent quarter over quarter in the first quarter, with analysts expecting a further increase of 80 to 85 percent in the second quarter of 2026.
The sharp rise in memory costs, combined with geopolitical tensions in the Middle East, is creating additional risks for smartphone supply chains, logistics, and overall production costs.
Soumen Mandal, a principal analyst at the firm, said shipments are expected to decline further in the coming months.
“We expect smartphone SoC shipments to decline by double digits in Q2, with the situation likely to worsen in the second half of the year,” Mandal said.
He added that the memory shortage could persist until the second half of 2027, prompting both smartphone manufacturers and chipmakers to delay product launches and scale back development spending.
The supply chain is not expected to stabilize until at least early 2028, with full-year 2026 shipments projected to decline by double digits compared to last year. (Source: IANS)
