SIGNALInfrastructure Software·Jun 17, 2026, 3:00 PMSignal75Short term

Smartphone market to shrink 15 percent this year due to memory crisis

Source: The Register

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Smartphone market to shrink 15 percent this year due to memory crisis

Buyers put off by rising prices expected to turn to second-hand phones instead

Why this matters
Why now

The semiconductor industry is grappling with persistent supply chain issues and inflationary pressures, directly impacting memory component costs and overall device prices.

Why it’s important

This indicates a significant shift in consumer spending habits within the personal tech sector, driven by economic constraints rather than technological innovation, affecting major manufacturers and retailers.

What changes

The market for new smartphones is visibly contracting, with consumers actively seeking more affordable alternatives like second-hand devices, altering revenue streams for the mobile industry.

Winners
  • · Used phone refurbishers
  • · Second-hand electronics marketplaces
  • · Budget smartphone manufacturers
Losers
  • · Premium smartphone brands
  • · New smartphone retailers
  • · Memory chip manufacturers
Second-order effects
Direct

Reduced sales and revenue for major smartphone manufacturers and their component suppliers.

Second

Increased demand and potential for innovation in the secondary device market and repair services.

Third

Long-term pressure on smartphone companies to rethink pricing strategies and product lifecycles, possibly leading to more durable or modular designs.

Editorial confidence: 90 / 100 · Structural impact: 60 / 100
Original report

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