Global smartphone chipset shipments dropped 15% during the first half of 2026, driven by rising component costs and shifting bill-of-materials dynamics, according to data published by Counterpoint Research. The contraction follows ongoing component price spikes, particularly within memory markets, forcing hardware manufacturers to re-evaluate supply chains and component pricing globally.
Memory Price Spikes Reshape Smartphone Bill of Materials
Rising memory prices have fundamentally altered component cost dynamics across the mobile industry in 2026. According to Counterpoint Research analysts, original equipment manufacturers face difficult margins as memory expenses climb, prompting a broader reshuffling of device bills of materials.
Google Pixel Tensor Expansion Amid Industry Slump
Even as the broader market contracts, Google continues expanding its proprietary hardware footprint. According to reporting from 9to5Google, shipments of devices powered by Google’s custom Tensor silicon grew during the downturn, illustrating a divergence between mass-market volume declines and specialized ecosystem growth.
Market Outlook and Industry Adaptation
Related reading