Smartphone shipments face worst decline ever: memory crisis and US-Iran war hit market

IDC cut its 2026 outlook, now expecting global smartphone shipments to fall 13.9% to 1.09 billion units.

AI-driven shortages of DRAM and NAND memory, plus higher logistics costs from the US-Iran war, are weighing on the market.

Average selling prices are projected to hit a record $550 as cheaper phones get squeezed.

Premium brands such as Apple and Samsung are expected to gain share while low-cost options shrink.