iPhone and other smartphone sales may decline in 2026

Global smartphone sales, including Apple’s iPhone, are expected to face a slowdown in 2026 due to rising production costs, according to Counterpoint Research (CR).

The research firm warns that the global smartphone market will be affected by a chip shortage, with overall supply projected to decline by 2.1%. Manufacturers, including Apple, will face higher production expenses, pushing the cost of flagship devices up by 10–15%.

Budget smartphone makers are likely to be hit hardest. Components for phones priced under $200 have risen 20–30%, which could force manufacturers to either reduce device features or increase prices. If it’s impossible to pass the costs onto consumers, manufacturers will start cutting their product ranges — and that’s exactly what we are seeing now, said Yang Wang, senior analyst at CR.

As a result, the average smartphone price in 2026 could climb by 6.9%. Despite these challenges, Apple recently reported record sales of the iPhone 17, underscoring strong demand for its flagship models.

By Vugar Khalilov