April 27, 2026 – According to Counterpoint Research’s “Preliminary Report on Global Smartphone SoC Shipments,” the global smartphone SoC market faced significant headwinds in the first quarter of 2026, with shipments declining by 8% year-on-year. This downturn was primarily attributed to persistent storage shortages, soaring memory prices, and geopolitical uncertainties, which collectively weighed on the industry.
The ongoing storage crunch has not only disrupted new product development for smartphone OEMs and SoC suppliers but also forced the sector to streamline its product portfolios. While the high-end smartphone segment demonstrated relative resilience, with manufacturers passing rising costs onto consumers through higher retail prices, the entry-level market took a different approach. To maintain price competitiveness, budget-friendly devices increasingly adopted older-generation chipsets, sacrificing cutting-edge features for affordability.
The performance of major SoC vendors diverged sharply during the quarter. Both Qualcomm and MediaTek, the two leading players, experienced double-digit declines in shipments. Qualcomm, despite its strong position in the premium segment, saw growth stifled by Samsung’s decision to use a mix of Snapdragon and Exynos chips in its Galaxy S26 series. MediaTek, on the other hand, struggled with delays in launching its new Dimensity 9500+ chipset, which hampered its momentum in mid-range and high-end markets.
In contrast, Apple, Samsung, and Google leveraged their robust supply chain integration capabilities to mitigate the impact of storage shortages, achieving positive shipment growth. Meanwhile, UNISOC (Ziguang Zhanrui) capitalized on opportunities in the low-end 4G and entry-level 5G markets, driven by partnerships with Chinese brands like Redmi and Pocophone. The company recorded double-digit year-on-year growth in shipments, steadily expanding its market share.
Memory prices remained a major pain point, surging by 50-55% quarter-on-quarter in Q1 2026. Analysts expect prices to climb another 80-85% in Q2, further squeezing supply chain margins. Looking ahead, Counterpoint Research predicts a double-digit decline in global smartphone SoC shipments for Q2, with full-year shipments likely to fall by a similar margin in 2026. However, the market is expected to begin recovering in early 2028, supported by expanded storage production capacity.
