According to a new IDC report, smartphone shipments are forecast to decline 12.9% year-on-year in 2026 and it will affect all consumer electronics industry, at least until mid-2027.
“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”.
"The tariffs and pandemic crisis seem a joke compared to this […]We don't expect the situation to ease up until mid-2027, at least.”
"While memory prices are projected to stabilize, they are unlikely to return to previous level. In short, there is no return to business as usual for vendors and consumers."
They say companies like Apple and Samsung that have big margins can absorb part of the price hike, but smaller vendors might need to leave the industry or significantly raise its prices. Surely, this will affect the prices and sales of new gaming hardware for at least the next two years. Any thoughts?
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Reported in Bloomberg, CNET, The Verge, Reuters and others.
Bloomberg article has more detail, but is behind a paywall.
Link to the IDC article.
