In 2026, sharp declines in smartphone and PC shipments are expected due to severe memory chip shortages. The International Data Corporation (IDC) forecasts a nearly 13% drop in global smartphone shipments to 1.1 billion units, marking the largest decline in over a decade. Concurrently, Gartner predicts a 10.4% decrease in worldwide PC shipments, attributing this decline to rapidly increasing memory costs. Smartphone shipments, according to Gartner, could experience an 8.4% fall when compared year-on-year. By the end of 2026, combined prices of DRAM and solid-state drives (SSD) are projected to surge by 130%, which in turn could inflate PC prices by 17% and smartphone prices by an estimated 13% relative to 2025 levels. This unprecedented drop in shipments is being characterized as the most significant contraction the device market has faced in a long time. As a response to these increasing costs, Gartner anticipates that upgrade cycles will shift, with many consumers choosing to keep their existing devices longer, thus extending the lifespan of both PCs and smartphones by 15% for business professionals and 20% for regular consumers. This marks a significant alteration in consumer behavior, as buyers will hesitate to invest in newer, costlier devices and opt to manage older machinery. Furthermore, the analysis indicates a potential delay in the anticipated surge of AI computers, which is now pushed back until 2028 at the earliest. As this crisis deeply impacts the smartphone market, particularly for lower-end Android manufacturers, vendors operating in this market segment are expected to be hit the hardest. In fact, major players like Apple and Samsung may find themselves in a better position than smaller firms to navigate this crisis effectively and could potentially capture more market share while their rivals struggle. The overall forecast suggests that smaller vendors may exit the market and that the sub-$500 entry-level PC segment could vanish entirely by 2028, leading to greater market consolidation in favor of bigger brands.