๐ The cheap smartphone era is officially dead.
Global smartphone shipments are expected to crash by -13% YoY in 2026 โ a staggering drop of 160 million units down to ~1.1 billion, per IDC.
This comes after weak +2% growth in 2025 and a stronger +6% in 2025. So whatโs behind the collapse? ๐ง
A severe memory chip shortage is driving component costs through the roof. Manufacturers are now killing off low-margin, entry-level phones (under $100) and pushing users toward premium devices.
Last year alone, ~170 million sub-$100 phones shipped โ but that segment is now financially unviable.
โ ๏ธ The shortage is expected to last until mid-2027. And even when supply recovers, memory prices wonโt return to 2025 levels.
๐ฑ๐ธ Bottom line: Budget smartphones are disappearing. The market is resetting โ and prices are going up for good.
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