Global smartphone system-on-a-chip (SoC) shipments dropped by 8% year-on-year in the first quarter of 2026, according to a report by Counterpoint Research. The ongoing memory shortage is affecting smartphone OEMs and SoC vendors, leading them to optimize their product portfolios. Premium segment smartphones have shown resilience, passing on higher costs to consumers, while entry-level OEMs are turning to lower-cost chipsets to maintain competitive prices.
Qualcomm and MediaTek experienced double-digit declines in shipments, while Apple, Samsung, Google, and UNISOC saw positive growth. Integrated supply chains helped Apple, Samsung, and Google mitigate the impact of the memory shortage. Qualcomm’s expected benefits from premiumization were limited due to various factors, including softer demand for certain smartphone models.
MediaTek faced challenges in the entry-level segment, with expectations that many OEMs will shift to UNISOC chipsets to cut costs. The memory prices surged by 50-55% in Q1, with a projected further increase of 80-85% in Q2 2026. The rise in memory costs, coupled with the Middle East conflict, poses risks to smartphone supply chains and overall costs.
Analysts predict a double-digit decline in smartphone SoC shipments in Q2, with challenges likely to worsen in the second half of the year. The memory shortage is anticipated to persist until the second half of 2027, impacting product launches and development spending. Normalization of the supply chain is not expected until early 2028, with a projected double-digit year-on-year decline in smartphone SoC shipments for 2026.
