Apple Shipments Expected to Decline by 2% in 2026 Amid Memory Chip Shortage

Apple Shipments Face a Decline

The global technology industry is dealing with higher component costs and tighter supply conditions, creating challenges for smartphone manufacturers.

Against this backdrop, Apple's shipments are expected to decline by around 2% in 2026, according to the report.

However, Apple remains relatively well positioned compared with many competitors because of its strong presence in the premium smartphone segment and its ability to manage component supplies.

Memory Chip Shortage

The shortage of memory chips has emerged as one of the biggest challenges facing the smartphone industry.

Growing demand for DRAM and other memory components from AI data centres has put pressure on supplies available to consumer electronics manufacturers.

Higher memory prices are consequently raising manufacturing costs across the smartphone industry.

Apple Remains Relatively Resilient

While the broader smartphone market is expected to contract sharply, Apple continues to benefit from strong demand for premium devices.

IDC forecasts a 13.9% decline in global smartphone shipments in 2026, while its outlook for iOS has been significantly more resilient.

Apple's early efforts to secure memory supplies have also helped reduce some of the pressure facing the company.

Strong iPhone 17 Demand

The iPhone 17 series has continued to see strong demand in several important markets.

Developed economies and China have been particularly important to Apple's performance, helping support demand for its latest iPhone lineup.

However, continued supply constraints could affect the availability of upcoming models.

Tough Year for Smartphone Industry

The global smartphone market is heading into one of its most difficult periods.

IDC expects worldwide smartphone shipments to fall to about 1.09 billion units in 2026, representing the steepest annual contraction on record.

Higher prices, memory shortages and longer replacement cycles are among the factors weakening demand.

Greater Pressure on Android Vendors

The downturn is not affecting all smartphone manufacturers equally.

Lower-priced Android brands are particularly vulnerable to rising memory costs because their margins are thinner and their customers are more price-sensitive.

Premium companies such as Apple and Samsung have greater financial flexibility and stronger purchasing power, allowing them to cope better with higher component costs.

Possibility of Higher Prices

Rising memory costs are increasing pressure on manufacturers.

Apple has already raised prices on some other hardware products while attempting to keep iPhone pricing relatively stable to protect demand.

If memory shortages persist, however, the company could face greater pressure to increase iPhone prices.

Indian Smartphone Market Also Slows

India's smartphone market is also experiencing a significant slowdown.

IDC data showed that smartphone shipments in India fell 11.1% year-on-year to 33.2 million units in the second quarter of 2026. First-half shipments declined 7.9%.

Apple has nevertheless remained relatively strong in the premium segment.

Challenges for Apple in India

Apple's India business is also facing supply constraints.

Reduced financing and exchange offers have added to affordability concerns, while higher component costs are putting additional pressure on prices.

Despite these challenges, the iPhone 17 remains among the country's most-shipped smartphone models.

Outlook

The duration of the global memory shortage will be crucial for the smartphone industry's recovery.

If component supplies improve and memory prices stabilise, consumer demand could recover.

Until then, premium brands with stronger supply chains and greater financial flexibility are likely to remain better positioned than lower-end competitors.

Conclusion

Apple is expected to face a decline in shipments in 2026 as memory shortages, higher component costs and a weakening global smartphone market create fresh challenges.

The company nevertheless remains relatively resilient because of its premium positioning, strong iPhone demand and ability to secure critical components.