Market research firm IDC's latest report reveals that the shortage of memory chips has caused the smartphone industry to decline for the first time in over two years. It marks a significant downturn in the sector.
IDC's most recent report paints a grim picture for the smartphone business this year, indicating a notably worsening outlook. The data shows that global smartphone shipments in the first quarter of 2026 fell by approximately 4.1 percent, ending nearly three years of growth in this industry.
The main reason for the decline in smartphone shipments is a severe shortage of memory chips, which has caused prices in this component category to surge by over 100 percent. Consequently, smartphone manufacturers had little choice but to pass these increased costs onto consumers, leading to retail price hikes of 40 to 50 percent in some markets.
Amid the market turmoil, Apple's strategy stands out. The company has chosen to sacrifice profit margins to keep iPhone prices stable, especially for its standard models like the iPhone 17. While competitors raised prices, Apple managed to grow iPhone sales by 3.3 percent.
Samsung initially saw growth of 3.6 percent but has begun increasing prices on high-end models such as the Samsung Galaxy Z Flip 7 and Samsung Galaxy S25 Edge. Tablet products also saw price increases ranging from about 40 to 80 U.S. dollars (around 1,300 to 2,600 Thai baht).
This situation has made Apple the only major player to keep prices steady. Analysts view this as a significant gamble, with Apple choosing to forgo short-term profits to secure a larger share of the smartphone market in the long term, especially as the industry starts facing challenges from the emerging AI sector.
Source:IDC