- IDC says smartphone shipment volume would be the lowest in over a decade.
- Low-end Android smartphone companies would be more severely impacted, while Apple and Samsung could cushion the blow - IDC.
- Apple said it will kick off a series of product launches on Monday.
Apple shares have long been under pressure for lagging behind Big Tech rivals in rolling out artificial intelligence features. Now, the company is confronting yet another major challenge.
In its latest forecast, issued Thursday, IDC said smartphone shipments would decline nearly 13% year over year to 1.1 billion units in 2026 – the lowest volume in more than a decade.
“What we are witnessing is not a temporary squeeze, but a tsunami-like shock originating in the memory supply chain, with ripple effects spreading across the entire consumer electronics industry,” Francisco Jeronimo, vice president for Worldwide Client Devices, IDC, said.
Memory Chips Shortage Weighs
Shortages and rising prices of memory chips are putting pressure on electronics manufacturers, including smartphone companies. At the same time, the average selling price for smartphones is set to hit new highs, with IDC predicting a 14% increase to a record $523.
The outlook is a clear negative for Apple, which only last quarter managed to bump up iPhone sales growth, thanks to the strong demand for the latest iPhone 17, after years of sluggish performance.
“The global smartphone market, particularly Android manufacturers, faces a significant threat,” IDC said in its report. Large companies like Apple and Samsung are better equipped to absorb the shock, but manufacturers concentrated in the budget segment would feel the greatest strain.
Middle East & Africa markets would face the steepest drop of 20.6%, while the world’s two largest markets, China and Asia Pacific (excluding Japan and China), are expected to decline by 10.5% and 13.1%, respectively.
Apple’s Product Launch
CEO Tim Cook on Thursday posted a small clip on X, which showed the Apple logo on a Mac or an iPad, with the caption, “A big week ahead. It all starts Monday morning! #AppleLaunch.”
Several Apple products are imminent, according to reports, including an all-new low-cost MacBook with an A18 chip, low-cost iPhone 17e, MacBook Pro with M5 Pro and M5 Max chips, and refreshed Studio Display, Apple TV and HomePod. Some of those could be launched next week.
Apple is also hosting a “special Apple Experience” event next Wednesday in New York, London, and Shanghai.
Apple shares are up a modest 0.4% year to date, after gaining 8.5% in 2025. On Stocktwits, retail sentiment has remained in the ‘bearish’ zone for the past seven days.
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