Global smartphone SoC shipments fell 8% YoY in Q1 2026 amid a worsening memory shortage, according to Counterpoint Research. Memory prices rose 50–55% QoQ in Q1 and are projected to surge another 80–85% in Q2. Qualcomm and MediaTek saw double-digit shipment declines, while Apple, Samsung, Google, and UNISOC grew — aided by integrated supply chains. The shortage is expected to persist through H2 2027, with SoC shipments forecast to drop double digits for all of 2026. Supply chain normalization is not expected before early 2028.
According to www.thehansindia.com, global smartphone system-on-a-chip (SoC) shipments declined 8 per cent year-on-year in Q1 2026, driven by acute supply chain disruption — particularly a severe memory shortage.
Memory Crisis Drives Portfolio Adjustments
The source states that memory prices surged 50–55 per cent on-quarter in Q1 2026, with forecasts pointing to a further 80–85 per cent quarter-on-quarter increase in Q2 2026. This sharp escalation is constraining both smartphone OEMs and SoC vendors, forcing them to delay new product launches, hold back next-generation versions, and scale back spending on new product development. According to the report by Counterpoint Research, the memory shortage is expected to persist until the second half of 2027, and the broader supply chain is not anticipated to return to normal until at least early 2028.
Vendor Performance Diverges Sharply
Qualcomm and MediaTek recorded double-digit declines in shipments during the quarter. In contrast, Apple, Samsung, Google, and UNISOC posted positive growth. The source attributes this divergence to integrated supply chains: Apple, Samsung, and Google were better able to mitigate memory-related disruptions thanks to vertical coordination and internal control over key components.
- Qualcomm’s performance was limited despite expectations of premiumization: “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 faced disproportionate 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,” Parashar added.
Segmental Resilience and Strategic Shifts
The premium smartphone segment remained relatively resilient, with higher component costs largely passed on to end consumers. Meanwhile, entry-level OEMs are increasingly adopting lower-cost chipsets — notably from UNISOC — to maintain price competitiveness. The source notes that the combined impact of rising memory costs and the ongoing Middle East conflict poses tangible risks to smartphone supply chains, logistics routing, and overall landed costs.
“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.” — Soumen Mandal, Principal Analyst, Counterpoint Research
Counterpoint Research projects a double-digit year-on-year decline in smartphone SoC shipments for all of 2026. For supply chain professionals, this signals extended lead-time volatility, intensified supplier qualification cycles for alternative memory sources, and heightened need for real-time cost modeling amid unpredictable component price swings. Tactical responses include accelerated dual-sourcing of DRAM/NAND, revisiting safety stock policies for memory-intensive SKUs, and stress-testing bill-of-materials flexibility across tier-2 and tier-3 suppliers — especially where geopolitical exposure overlaps with critical semiconductor nodes.
Source: www.thehansindia.com
Compiled from international media by the SCI.AI editorial team.
