Memory shortage drives smartphone market to worst slump in 13 years as AI demand reshapes industry
Global smartphone shipments plummeted 11% in Q2 2026, marking the steepest decline since 2013. The memory shortage, driven by AI's insatiable demand for high-bandwidth chips, has forced manufacturers to shift production away from consumer electronics. Budget phones face price hikes of up to 68%, while premium brands like Apple and Samsung continue to gain market share.