Global smartphone chipset shipments declined by 15% during the first half of 2026, according to a report by Counterpoint Research, as an ongoing memory chip shortage and component constraints continue to impact original equipment manufacturers worldwide.
Qualcomm and MediaTek Face Steep Declines in SoC Shipments
The industry contraction has hit major suppliers unevenly. According to Counterpoint Research, the two largest mobile system-on-chip (SoC) providers, Qualcomm and MediaTek, experienced an estimated 25% decline in shipments during the first half of 2026 compared to the same period in 2025.
Qualcomm saw limited growth for its flagship Snapdragon 8 Elite Gen 5 model and other premium processors. Meanwhile, MediaTek experienced a sharp drop in low-end 5G chip shipments, though its higher-end Dimensity 9500 series performed comparatively well.
Did you know? Global smartphone shipments have faced prolonged downward pressure as memory component shortages restrict production lines across major manufacturing hubs.
Apple, Unisoc, and Samsung Expand Market Share Despite Headwinds
While the top two suppliers contracted, Apple, Unisoc, and Samsung managed to increase their SoC shipments during the first half of 2026, according to Counterpoint data. Apple benefited from strong demand for the iPhone 17 series, which bolstered production volumes for the A19 and A19 Pro chipsets.
At the entry-level tier, analysts identified a distinct shift away from 5G MediaTek processors toward 4G Unisoc chips in budget devices. Unisoc also expanded its footprint through new partnerships with Xiaomi for Redmi and Poco branded smartphones.
Outlook and Entry-Level Market Projections
Market recovery remains distant as supply chain constraints persist. Counterpoint estimates that total smartphone chipset shipments will fall by 14% for the full year, with the entry-level segment bearing the heaviest burden through a projected 30% year-over-year drop in SoC shipments.
Industry analysts project that memory chip prices will not stabilize before the second half of 2027, keeping manufacturing costs elevated and delaying broader volume recovery for original equipment manufacturers.
Pro Tip: Industry watchers tracking component availability should monitor memory pricing trends heading into late 2027 to gauge when entry-level device manufacturing might rebound.
Frequently Asked Questions
Why are smartphone chipset shipments declining in 2026?
According to Counterpoint Research, global smartphone chipset shipments fell by 15% in the first half of 2026 due to an ongoing memory chip shortage and broader component constraints affecting original equipment manufacturers.
Which chipmakers were hit the hardest?
Qualcomm and MediaTek experienced an estimated 25% decline in SoC shipments during the first half of 2026 compared to the previous year.
Which companies managed to grow their chipset shipments?
Apple, Unisoc, and Samsung all increased their SoC shipments, driven by iPhone 17 demand, budget-tier shifts toward 4G chips, and new manufacturing partnerships.
When are memory chip prices expected to normalize?
Counterpoint estimates that memory chip prices will not normalize until the second half of 2027.
Join the Discussion: How are these component shortages affecting device availability in your region? Leave a comment below, share this article with your network, or subscribe to our newsletter for the latest mobile industry updates.