Global smartphone System-on-Chip (SoC) shipments declined by 8% year-on-year in the first quarter of 2026, according to the latest preliminary report on worldwide smartphone SoC shipments. Persistent memory supply constraints are impacting new product development for smartphone original equipment manufacturers (OEMs) and SoC suppliers, while also prompting them to optimize their product portfolios. The high-end smartphone market has remained relatively resilient, with most cost increases being passed on to end consumers. Meanwhile, the entry-level segment is gradually adopting lower-cost, older-generation chipsets to maintain price competitiveness. The supply chain is not expected to return to normal levels until at least early 2028. Full-year 2026 smartphone SoC shipments could see a double-digit percentage decline compared to the previous year.
Shipments from Qualcomm and MediaTek both experienced double-digit decreases. In contrast, Apple, Samsung, Google, and UNISOC achieved positive growth. Among these, Apple, Samsung, and Google have benefited from their supply chain integration capabilities, which have helped mitigate some of the effects of the current memory shortage.
UNISOC is positioned to benefit from increasing design wins in the low-end 4G market and entry-level 5G smartphones. Support from Chinese brands such as Redmi and Pocophone helped drive double-digit year-on-year shipment growth for UNISOC in the first quarter of 2026.
Memory prices increased by 50% to 55% quarter-on-quarter in Q1 2026 and are projected to rise by another 80% to 85% in the second quarter. The sharp increase in memory costs, combined with geopolitical factors, is putting pressure on smartphone supply chains, logistics, and overall costs.
It is anticipated that smartphone SoC shipments will decline by a double-digit percentage in the second quarter, with conditions likely worsening in the second half of the year. However, some relief may come from expanded production capacity leading to increased memory supply. Smartphone OEMs and chip suppliers are expected to postpone product launches and adjust R&D spending for new products to navigate these challenges.
Due to memory-related issues, shipments of entry-level and mid-range smartphone SoCs are set to decline. Shipments of high-end smartphone SoCs may also fall as MediaTek and Qualcomm delay the launch of their new SoCs in the second quarter of 2026.
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