TechCrunch Industry News Memory shortage could cause the biggest smartphone shipments dip in over a decade; plus, Mistral AI inks a deal with global consulting giant Accenture
Feb 26, 2026
A looming global RAM shortage could trigger the largest drop in smartphone shipments in over a decade and reshape low-end markets. Rising component costs may push up average selling prices and threaten sub-$100 phones. A major AI startup has struck a multi-year deal with a leading consultancy to deploy its models for enterprise customers, highlighting how consultancies are steering AI adoption.
AI Snips
Chapters
Transcript
Episode notes
Memory Shortage Shrinks Smartphone Market
- IDC predicts smartphone shipments will fall from 1.26B to 1.12B this year due to a RAM shortage driving component costs up.
- ASPs are expected to jump 14% to $523, squeezing sub-$100 phones and shrinking entry/mid tiers by ~20%.
Rising Memory Costs Force Price Or Spec Tradeoffs
- IDC says average selling price will rise about 14% as memory costs increase, making many low-cost models uneconomical.
- Brands face a choice: raise prices significantly or downgrade specs, undermining value-brand strategies.
Emerging Markets Will Be Hit Hardest
- Markets will be unevenly impacted, with Middle East and Africa shipments expected to drop over 20% year-over-year.
- China and Asia Pacific face declines between 10% and 13% as low-cost device availability falls.