"Smartphone production will decline in 2026 due to the chip crisis."

Impact of Chip Crisis on Smartphone Production

According to research firm Counterpoint Research, the memory chip shortage will tighten smartphone production by increasing costs. Global smartphone shipments are expected to decline by 2.1% in 2026.

Background of the Forecast

This decline highlights a contradictory approach compared to Counterpoint's forecast of a 3.3% increase for this year. Furthermore, average smartphone prices are expected to rise by 6.9% in 2026.

Developments in the Semiconductor Sector

The acceleration of global artificial intelligence development has directed semiconductor manufacturers towards advanced memory production for companies like Nvidia Corp.. This situation has led to a shortage of dynamic random access memory (DRAM), which is critical for various electronic products ranging from laptops to electric vehicles.

Reaction of Consumer Electronics Manufacturers

In recent months, consumer electronics manufacturers such as Xiaomi have raised concerns about potential price increases, while Lenovo Group has begun stockpiling memory in anticipation of rising costs.

Market Dynamics and Effects

Nintendo shares experienced a significant drop in December due to concerns over its flagship Switch 2 console. In the smartphone market, Chinese brands such as Honor Device Co. and Oppo are in a more vulnerable position due to low profit margins.

Conclusion and Expectations

According to Counterpoint, the memory chip shortage will particularly negatively impact entry-level smartphones. Senior analyst Yang Wang stated that Apple and Samsung are the best-positioned companies to weather tough times, while others will struggle to balance market share and profit margins.

The effects on consumers will be felt as companies guide users towards higher-tier models. Other alternatives include the reuse of older components or selling phones with less memory.