The global smartphone market is facing significant headwinds as supply chain disruptions continue to affect production capabilities. The latest report from Counterpoint Research reveals that smartphone chipset shipments have experienced a sharp decline of 15% in the first half of 2026. This downturn is primarily attributed to the persistent memory chip shortage, which has adversely impacted various components of smartphone production, including System on Chips (SoCs).
Major players in the chipset market, Qualcomm and MediaTek, have been the hardest hit, facing an estimated 25% drop in SoC shipments compared to the same period in 2025. Qualcomm's flagship Snapdragon 8 Elite Gen 5 and other premium models have seen limited growth, whereas MediaTek’s low-end 5G offerings have suffered a substantial decline. However, their premium Dimensity 9500 series has outperformed other segments.
Conversely, companies like Apple, Unisoc, and Samsung have managed to boost their SoC shipments. Apple's demand for the iPhone 17 series significantly increased the adoption of its A19 and A19 Pro chipsets. Analysts from Counterpoint also note a trend where entry-level devices are shifting from 5G MediaTek chips to more affordable 4G Unisoc options. This growth is further supported by Unisoc's collaborations with Xiaomi for their Redmi and Poco series.
Looking toward the future, Counterpoint predicts that smartphone chipset shipments will see an overall decline of 14% for the year, with entry-level SoC shipments expected to drop by as much as 30% year-over-year. It appears that memory chip prices are unlikely to stabilize until the latter half of 2027.
