The worldwide mobile phone market is bracing for a possible 31% downturn in deliveries over the coming year, a repercussion of intensifying memory chip expenses sustained by the need from AI hyperscalers, according to Jeffries.
The company kept in mind a 70% quarter-on-quarter cost rise in memory chips, driven by server-making business’ increasing need. The costs are forecasted to increase by an extra 50% in Q2 2026, Fortune reported on Wednesday.
Edison Lee, the China Head of Tech & & Apple at Jefferies, shared this details with his group. On the other hand, a note by Jefferies SVP Sonali Salgaonkar and her group exposed, “Post AI need rise, servers are now 60-70% of offtake of memory chips vs. 30% earlier.”
Double-Digit Decrease In Phone Market
On The Other Hand, Counterpoint Research Study in the very same month forecasted a 12% year-on-year decrease in international mobile phone deliveries in 2026, calling it the “sharpest decrease on record.”
Qualcomm, Apple Face Near-Term Pressure
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