Global smartphone shipments declined 11% year-over-year in Q2 2026, marking the lowest Q2 level since 2013, according to Counterpoint Research on July 13. This decline is primarily attributed to persistent DRAM and NAND supply tightness, as AI servers prioritize high-value memory absorption. Mid-to-low-end smartphone brands are most affected, struggling to pass rising memory costs to consumers.
AI server memory demand is now directly reducing consumer electronics shipments, shifting memory pricing power to suppliers and impacting non-AI component demand.