SMARTPHONE SALES PROJECTED TO DECLINE IN 2026 AMID RISING CHIP COSTS Global smartphone shipments are expected to decline 2.1% in 2026 as rising chip costs weigh on consumer demand, according to Counterpoint. Shortages of legacy memory chips, driven by a shift toward AI-focused components, are raising bill-of-materials costs by 20%–30%, hitting sub-$200 devices hardest. Chinese brands such as Honor and Oppo are most exposed due to thin margins, while Apple and Samsung are better positioned. Growing AI server demand is further straining memory supply.(*Walter Bloomberg)