**Market Trends: Apple and the Future of Smartphone Shipments in 2026**
Market research firm Counterpoint Research has made notable forecasts concerning the smartphone industry for 2026, pointing to a reduction in worldwide smartphone shipments and a rise in production expenses, notably impacting Apple.
Based on Counterpoint’s most recent Global Smartphone Shipment Tracker and Forecast, worldwide smartphone shipments are projected to decline by 2.1% in 2026. This drop is linked to increasing component prices, which are expected to heavily influence consumer demand. Apple is estimated to face a year-on-year sales decline of 2.2%, a more pronounced drop compared to rivals like Samsung, Mi, Vivo, and Oppo.
A major factor contributing to these alterations is the surge in manufacturing expenses, particularly related to memory components. Counterpoint emphasizes that the budget smartphone market (devices costing below $200) is undergoing the most significant effects, with bill of materials (BoM) expenses escalating by 20%-30% since the start of the year. In comparison, mid-range and high-end sectors have witnessed price hikes of 10%-15%.
Research Director MS Hwang remarked that while the total market is encountering hurdles, Apple and Samsung are better positioned to navigate these increased expenses. Brands focusing on lower-cost smartphones may find it challenging to sustain profitability, as some models might become unviable for production.
As the smartphone market progresses, these patterns indicate that consumers may need to realign their expectations concerning pricing and availability, especially for entry-level devices. The expected changes in market dynamics are likely to shape purchasing choices and the broader landscape of smartphone offerings in the years ahead.
