Smartphone memory prices surged 300% year-on-year in Q2 2026, making memory more expensive than processors across all segments. According to Counterpoint’s report, this sharp rise has slowed shipments and pushed phone makers to cut back on entry-level models.
Global smartphone chip shipments fell 15% in the first half of 2026 as costs climbed. MediaTek and Qualcomm saw shipments drop more than 25% YoY, while Apple gained share with strong iPhone 17 sales. Samsung also grew shipments by mixing Snapdragon 8 Elite Gen 5 with its own Exynos 2600 in the Galaxy S26.
Google and UNISOC managed growth despite the downturn. UNISOC benefited from cheaper 4G platforms and new 5G deals, while Google’s Pixel phones continued to expand. At the same time, GenAI smartphone chips grew 24% YoY, showing strong demand for AI features in premium devices.
The report warns the memory shortage will last until H2 2027, keeping pressure on budget and mid-range phones. Shipments in these segments are expected to fall more than 30% YoY in 2026, while premium models continue to get upgrades where buyers are less sensitive to price.
Also Read: Qualcomm confirms Snapdragon chip price hike is coming
Adding to the pressure, Qualcomm has confirmed it will raise prices on Snapdragon chips starting this September. With memory already costing more and processors set to follow, smartphone prices are unlikely to stay steady. Expect higher costs once these changes take effect.
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