{"id":319247,"date":"2025-12-16T15:16:10","date_gmt":"2025-12-16T15:16:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/319247\/"},"modified":"2025-12-16T15:16:10","modified_gmt":"2025-12-16T15:16:10","slug":"smartphone-market-expected-to-shrink-in-2026-due-to-rising-costs","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/319247\/","title":{"rendered":"Smartphone market expected to shrink in 2026 due to rising costs"},"content":{"rendered":"

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According to a new report, the smartphone market as a whole is expected to shrink in 2026 due to the rising costs of components.<\/p>\n

Counterpoint Research says<\/a> that its forecasts for the global smartphone market in 2026 is expecting the entire market to shrink by around 2.1%. Where the firm originally expected some major brands to see a decline in year-over-year shipments, every brand is now expected to see a notable decline.<\/p>\n

The report explains that low-end smartphones will be \u201cimpacted most severely.\u201d<\/p>\n

The stated reason for the decline is due to the rising costs of materials, as chip and memory prices are rising due to AI demands. The report brings out that costs on low-end phones have already risen by \u201c20-30%\u201d since the beginning of this year, with memory prices potentially rising by \u201canother 40% through Q2 2026.\u201d This could lead to the total bill of materials for a new smartphone in 2026 rising by \u201cbetween 8% and over 15% above current elevated levels,\u201d inevitably meaning devices will get more expensive.<\/p>\n

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Counterpoint says that it expects \u201caverage selling prices (ASPs) to also increase next year by 6.9%.\u201d<\/p>\n

It\u2019s further stated that major brands such as Apple and Samsung are \u201cbest positioned\u201d to push through the decline, while brands that \u201cdon\u2019t have as much wiggle room\u201d such as Chinese OEMs (Xiaomi, Honor, Oppo, etc). Counterpoint\u00a0estimates that Apple and Samsung could see shipment declines of around 2%, while Honor may fare worse, with a decline of over 3%. Vivo and Oppo, both previously expected to grow in 2026, are also now expected to see declines, the firm says.<\/p>\n

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