1. Why is the smartphone crisis trending today, 02-06-2026?
Because the global smartphone market is heading toward its largest annual decline on record, with shipments expected to drop by 13.9% this year due to the memory chip shortage crisis.
2. Will phone prices rise in 2026?
Yes, prices are expected to increase. Reuters reported that wholesale smartphone prices rose by 14% in the first quarter, while the chip shortage continues to put pressure on companies.
3. What is causing the shortage of phone chips?
The main reason is that chip companies have shifted toward producing AI-related chips, which has reduced the availability of memory chips used in smartphones, especially budget and mid-range phones.
4. Which phones are most affected by the crisis?
Low-cost and mid-range phones are the most affected, especially devices priced below $150. Some of these models may disappear from the market because they are no longer profitable for companies.
5. Will Apple and Samsung be affected?
Yes, but to a lesser extent. Apple and Samsung have stronger supply chains and higher profit margins, so they are expected to outperform the market compared with companies such as Xiaomi, Honor, and Transsion.
6. Is this a good time to buy a new phone?
If you need a budget or mid-range phone, buying soon may be better before prices rise or some models disappear. But if you are considering a flagship phone such as an iPhone or Samsung Galaxy, the pressure is lower, though still possible.