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iPhone sales predicted to fall next year, with far higher manufacturing costs

Market intelligence company Counterpoint Research has predicted that iPhone sales will fall next year compared to this – and that Apple’s manufacturing costs will increase substantially.

Global smartphone shipments as a whole are expected to fall in 2026, with Apple being among the worst hit …

Counterpoint published revised 2026 global smartphone shipment predictions today.

Global smartphone shipments are expected to decline 2.1% in 2026 as surging component costs are likely to impact demand, according to Counterpoint Research’s latest Global Smartphone Shipment Tracker and Forecast.

The firm says Apple is likely to experience a fall of 2.2% year-on-year, a bigger drop than Samsung, Mi, Vivo, or Oppo.

It also suggests that smartphones are going to be significantly more expensive to manufacture next year due to rising component costs, especially memory.

“What we are seeing now is the low end of the market (below $200) being impacted most severely, with BoM (bill of materials) costs increasing by 20%-30% since the beginning of the year,” said Research Director MS Hwang. “The market’s mid- and high-end segments have seen 10%-15% price increases.”

However, Counterpoint notes that Apple and Samsung are best positioned to cope with these increased costs, while brands selling cheap smartphones may find that some models are simply not feasible anymore.

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Photo by Igor Omilaev on Unsplash

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Avatar for Ben Lovejoy Ben Lovejoy

Ben Lovejoy is a British technology writer and EU Editor for 9to5Mac. He’s known for his op-eds and diary pieces, exploring his experience of Apple products over time, for a more rounded review. He also writes fiction, with two technothriller novels, a couple of SF shorts and a rom-com!


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