Global Smartphone Market Faces Severe Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 27 2026
0mins
Should l Buy STX?
Source: CNBC
- Pessimistic Market Forecast: The International Data Corporation (IDC) reports that the global smartphone market is expected to shrink by 13% in 2026, marking a historic low, primarily due to dwindling memory supplies driving up device prices, which negatively impacts consumer purchasing willingness.
- Sharp Decline in Shipments: Counterpoint Research projects a 12% year-on-year drop in global smartphone shipments in 2026, the largest decline on record, with 2023 shipments expected to hit their lowest levels since 2013, indicating a drastic reduction in market demand.
- Chip Shortage Impact: The fierce investment in AI infrastructure has strained memory chip inventories, forcing smartphone manufacturers to queue in the supply chain, leading to price surges that further compress profit margins and may compel manufacturers to pass costs onto consumers.
- Structural Market Changes: As profit margins in the low-end market shrink, manufacturers may prioritize sales of mid- to high-end models, with some potentially exiting the low-end market entirely, while the secondary smartphone market is expected to grow as consumers are priced out by rising memory costs.
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Analyst Views on STX
Wall Street analysts forecast STX stock price to fall
18 Analyst Rating
14 Buy
3 Hold
1 Sell
Moderate Buy
Current: 423.120
Low
150.00
Averages
310.39
High
465.00
Current: 423.120
Low
150.00
Averages
310.39
High
465.00
About STX
Seagate Technology Holdings plc provides mass-data storage infrastructure solution. The Company’s principal products are hard disk drives, commonly referred to as disk drives, hard drives (HDDs). In addition to HDDs, the Company produces a range of data storage products, including solid state drives (SSDs), solid state hybrid drives, storage subsystems, as well as a scalable edge-to-cloud mass data platform. Its HDD products are designed for mass capacity storage and legacy markets. Mass capacity storage involves use cases, such as hyperscale data centers and public clouds, as well as emerging use cases. The Company’s HDD and SSD product portfolio includes Serial Advanced Technology Attachment, Serial Attached SCSI and Non-Volatile Memory Express based designs to support a variety of mass capacity and legacy applications. Its systems portfolio includes storage subsystems for enterprises, cloud service providers, scale-out storage servers and original equipment manufacturers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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