An IDC report says the smartphone market is expected to decline by 0.9% in 2026, in part due to memory shortages and surging component prices. According to IDC, the average smartphone selling price is expected to rise to $465 in 2026, up from $457 in 2025.
Memory and other component price fluctuations aren’t new. But the ongoing memory price surge is set to cause an upheaval, with entry-level and budget-friendly Android smartphones likely to bear the brunt of the fallout. Memory prices are likely to rise 30% this quarter, and another 20% more early next year, on top of 50% price increases we’ve already seen this year, according to Counterpoint Research.