Smartphone Chipset Market Expected to Shrink in 2026, In-House Chip Development to Offer Resilience

Smartphone Chipset Market Forecast to Contract by 7% in 2026

A new report forecasts a contraction in the smartphone chipset market by approximately 7% in 2026 compared to 2025.

This projected decline is attributed to rising memory prices, which are anticipated to significantly impact the sub-$150 smartphone segment.

Brands investing in proprietary chip development are identified as being better positioned to navigate the market challenges expected in 2026. This includes companies like Samsung, Google, Huawei, and Xiaomi, particularly those behind products such as Google Pixel.

Vendors with substantial exposure to 4G and entry-level 5G smartphones are forecast to experience the most pressure.

Although Google's Tensor chip has not significantly impacted smartphone SoC shipment numbers in past or immediate future forecasts, its contribution to a premium-focused product portfolio aligns with current market trends.

Analysts anticipate that Google's smartphone business may experience less impact from the market downturn compared to other brands.