Apple Faces Record iPhone Volume Drop in 2026 as Chip Costs Surge
Apple’s iPhone volumes are forecast to drop in 2026 at the steepest pace on record as global smartphone shipments face their largest annual contraction due to surging memory chip prices. Memory chip costs hitting multi-year highs have elevated per-unit expenses, potentially pressuring Apple to adjust production or pricing strategies.
1. Global Shipments to Contract Record Pace
Industry forecasters project 2026 smartphone shipments will suffer the largest annual decline ever as memory chip cost inflation drives up component expenses and dampens consumer demand worldwide.
2. Pressure on Apple’s iPhone Business
Apple is set to see a significant reduction in iPhone volumes, risking margin compression that may force the company to alter production plans, adjust device pricing or delay certain model rollouts to manage cost pressures.