Key takeaways
  • Global smartphone shipments fell 11% year over year in Q2 2026, marking the weakest second quarter for the industry since 2013.
  • The AI boom is driving up memory chip prices, as suppliers prioritize AI data centres over smartphone manufacturers.
  • Higher DRAM and NAND costs are pushing up smartphone prices, making entry- and mid-range devices less affordable.

It’s been in the news lately that your next smartphone could cost significantly more because AI is consuming much of the world’s memory chip supply. Now, the global smartphone shipment figures for Q2 2026 has rolled out, and they may be one of the clearest signs yet that this is becoming the industry’s new reality.

According to Counterpoint Research, global smartphone shipments fell to their lowest second-quarter level since 2013 because many simply couldn’t afford to buy them.

AI demand is dragging down global smartphone shipments

We’re beginning to see one of the first major financial impacts of the AI boom on consumer technology, as global smartphone shipments fell 11% year over year in Q2 2026.

The decline was driven by soaring DRAM and NAND memory prices, as suppliers increasingly prioritized AI data centres over consumer electronics.

Discussing the market conditions, Counterpoint Research analyst Shilpi Jain said, “The global memory crisis has now overtaken every other factor as the single biggest drag on the smartphone industry… What started as a components issue last year is now a full-blown demand issue.”

MORE INSIGHTS ON THIS TOPIC:

What this means for smartphone buyers

The numbers point to a difficult period for smartphone buyers.

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