Facing rising costs and supply strain, global smartphone SoC shipments drop 8% as memory crunch hits Qualcomm and MediaTek hardest.
Global smartphone system-on-chip (SoC) shipments fell 8 per cent year-on-year in the first quarter of 2026, according to a report by Counterpoint Research, as a prolonged memory shortage disrupted product development and supply chains across the industry.
The report said rising memory costs have affected both smartphone manufacturers and chipset vendors, forcing companies to streamline product portfolios and delay new launches. While the premium segment has remained relatively stable, with higher costs passed on to consumers, entry-level smartphone makers are increasingly shifting towards lower-cost chipsets to maintain price competitiveness.
Among leading vendors, Qualcomm and MediaTek recorded double-digit declines in shipments during the quarter. In contrast, Apple, Samsung, Google and UNISOC reported growth, supported in part by more integrated supply chains that helped mitigate supply disruptions.
“Qualcomm and MediaTek were the most affected by the ongoing memory shortage, though for different reasons,” said Shivani Parashar, Senior Analyst at Counterpoint.
Qualcomm was expected to benefit from premiumisation, but the impact was limited by Samsung’s Galaxy S26 series, which uses both the Snapdragon 8 Elite Gen 5 and the Exynos 2600, and by softer demand for the Xiaomi 17 series. MediaTek, on the other hand, faced greater pressure in the entry-level segment.
She noted that OEMs are expected to shift to UNISOC chipsets to reduce costs. At the same time, weaker growth in the mid- and premium tiers, coupled with the delayed launch of the Dimensity 9500+, further weighed on MediaTek’s performance.
Meanwhile, memory prices rose 50–55 per cent quarter-on-quarter in Q1 2026 and are expected to increase further in the second quarter, adding pressure on device costs. The situation is compounded by geopolitical tensions, including conflict in the Middle East, affecting logistics and supply chains.
“We expect smartphone SoC shipments to decline by double digits in Q2, with the situation likely to worsen in the second half of the year. The memory shortage is expected to continue until the second half of 2027,” said Soumen Mandal, Principal Analyst, Counterpoint.
Both smartphone OEMs and chipset vendors are delaying product launches, holding back new versions and adjusting their spending on new product development to navigate the challenges.
He added that smartphone SoCs for the entry and mid-price segments will decline due to the memory crisis, while the premium smartphone SoC segment will see shipments decline due to delays in MediaTek and Qualcomm SoC launches in Q2 2026.
Furthermore, supply chain conditions may not stabilise until early 2028, with full-year 2026 shipments likely to record a double-digit decline.
