The international smartphone market is bracing for a potential 31% slump in shipments over the coming year, a consequence of escalating memory chip costs fueled by the demand from AI hyperscalers, according to Jeffries.
The firm noted a 70% quarter-on-quarter price surge in memory chips, driven by server-making companies’ increasing demand. The prices are projected to rise by an additional 50% in Q2 2026, Fortune reported on Wednesday.
Edison Lee, the China Head of Tech & Apple at Jefferies, shared this information with his team. Meanwhile, a note by Jefferies SVP Sonali Salgaonkar and her team revealed, “Post AI demand surge, servers are now 60-70% of offtake of memory chips vs. 30% earlier.”
Double-Digit Decline In Phone Market
Earlier this year, analysts had already predicted the steepest decline in the global smartphone market in 2026, with memory shortages driving up …
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