Global Smartphone SoC Shipments Experience Significant Decline
NEW DELHI — Recent analysis from Counterpoint Research reveals a notable 8 percent decrease in global smartphone system-on-a-chip (SoC) shipments during the first quarter of 2026, primarily attributed to an enduring memory shortage that has severely disrupted supply chains and inhibited product development.
This protracted scarcity of memory components is adversely impacting both smartphone manufacturers and chip suppliers.
Consequently, many enterprises are compelled to streamline their product offerings while postponing new launches.
Interestingly, the premium smartphone sector has demonstrated a measure of resilience, with manufacturers successfully passing increased costs onto consumers.
In stark contrast, producers of entry-level devices are pivoting towards more affordable chipsets to maintain competitive pricing.
Among the key players in the semiconductor industry, Qualcomm and MediaTek experienced double-digit declines in shipments. Meanwhile, Apple, Samsung, Google, and UNISOC reported incremental growth.
Analysts attribute the favorable performance of Apple, Samsung, and Google to their more cohesive and integrated supply chains, which have enabled them to better navigate the ramifications of the memory crisis.
“Qualcomm was anticipated to benefit from the trend of premiumization; however, its impact was somewhat muted due to Samsung’s Galaxy S26 series utilizing both Snapdragon 8 Elite Gen 5 and Exynos 2600, coupled with diminished demand for the Xiaomi 17 series,” stated Shivani Parashar, a senior analyst at Counterpoint Research.
Moreover, MediaTek is grappling with heightened challenges within the entry-level segment.
We predict that many original equipment manufacturers (OEMs) will transition to UNISOC chipsets in efforts to curtail costs.
Simultaneously, a slowdown in growth within mid-tier and premium segments, along with the postponed launch of the Dimensity 9500+, has further burdened MediaTek’s market position, Parashar elaborated.
Memory prices surged significantly, increasing by 50 to 55 percent quarter over quarter in the first quarter, and analysts foresee an additional rise of 80 to 85 percent in the second quarter of 2026.
This sharp escalation in memory costs, compounded by geopolitical tensions in the Middle East, is exacerbating risks associated with smartphone supply chains, logistics, and overarching production expenses.
Soumen Mandal, a principal analyst at Counterpoint, indicated that shipments are likely to face further declines in the months ahead.
“We anticipate a double-digit drop in smartphone SoC shipments in Q2, with conditions expected to deteriorate in the latter half of the year,” Mandal noted.
He further suggested that the memory shortage may linger until the latter part of 2027, compelling both smartphone manufacturers and chipmakers to postpone product launches and curtail development expenditures.
Stabilization of the supply chain is not anticipated until at least early 2028, with projected shipments for the entirety of 2026 expected to decline by double digits relative to the previous year.
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