New Delhi, April 24 (IANS) Global smartphone system-on-a-chip (SoC) shipments declined 8 per cent year-on-year in Q1 2026, a report showed on Friday.

The ongoing memory crunch is impacting both smartphone OEMs and SoC vendors’ new product development while forcing them to optimise their product portfolios, said the report by Counterpoint Research.

The premium segment has remained relatively resilient, with higher costs largely passed on to end consumers. Meanwhile, the entry-level OEMs are increasingly adopting lower-cost chipsets to keep smartphone prices competitive, it noted.

Qualcomm and MediaTek recorded double-digit declines in shipments. In contrast, Apple, Samsung, Google and UNISOC posted positive growth. Their integrated supply chains helped Apple, Samsung and Google to better mitigate the impact of the ongoing memory crunch.

“Qualcomm was expected to benefit from premiumization, but the impact was limited due to Samsung’s Galaxy S26 series using both Snapdragon 8 Elite Gen 5 and Exynos 2600, along with softer demand for the Xiaomi 17 series,” said senior analyst Shivani Parashar.

MediaTek, on the other hand, faced greater pressure in the entry-level segment.

“We expect many OEMs will shift to UNISOC chipsets to reduce costs. At the same time, weaker growth in the mid- and premium tiers, coupled with the delayed launch of the Dimensity 9500+, further weighed on MediaTek’s performance,” said Parashar.

Memory prices increased 50-55 per cent on-quarter in Q1, and “we expect a further rise of 80-85 per cent QoQ in Q2 2026”.

The sharp increase in memory costs, combined with the ongoing Middle East conflict, poses risks to smartphone supply chains, logistics, and overall costs.

Principal analyst Soumen Mandal said, “we expect smartphone SoC shipments to decline by double digits in Q2, with the situation likely to worsen in the second half of the year.

“The memory shortage is expected to continue until the second half of 2027. Both smartphone OEMs and chipset vendors are delaying product launches, holding back new versions and adjusting their spending on new product development to navigate the challenges,” he noted.

The supply chain is not expected to return to normal until at least early 2028. Smartphone SoC shipments will likely see a double-digit YoY decline in 2026.

–IANS

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