The Mobile World Congress 2026, commencing in Barcelona, is taking place in an atmosphere of deep market anxiety. While leaders such as Honor, Xiaomi, and Vivo showcase innovative foldable models and humanoid robots, IDC analysts warn of the largest sales decline in a decade. The reason is a critical shortage of RAM components, drastically driving up production costs and heralding the inevitable end of the era of cheap mobile devices.

Historic sales decline

IDC forecasts indicate the lowest level of smartphone shipments in over ten years due to component shortages.

End of cheap phones

The sharp increase in RAM prices and the implementation of AI are making the budget device segment unprofitable.

Innovations at MWC 2026

Despite the crisis, the Barcelona fair is abundant with launches: from Honor's ultra-slim foldables to humanoid robots.

Geely's expansion in Spain

The Chinese automotive giant confirms the debut of its electric SUVs in Europe, attacking Tesla's position.

The MWC 2026 trade fair in Barcelona presents a paradoxical picture of an industry that, on one hand, showcases breakthrough innovations, and on the other, faces an existential financial threat. The Honor brand shocked the market with its Magic V6 model, which, despite its extremely slim construction, boasts record mechanical durability. Simultaneously, Xiaomi confirmed the global premiere of its photographic flagship co-branded with Leica, and Vivo presented the X300 Ultra model. However, these innovations are overshadowed by reports from institutions like IDC, which warn of an impending price tsunami caused by semiconductor and RAM shortages. The problem is so serious that Nabila Popal from IDC describes the current situation as "a crisis like no other". Shortages in RAM supply chains have translated into an unprecedented increase in prices for finished products, which could cause budget models to disappear entirely from store shelves. Experts predict that smartphone sales in 2026 will record the deepest decline in over a decade, surpassing difficulties from the pandemic period or tariff wars between superpowers. The price increase is further fueled by the implementation of advanced artificial intelligence algorithms directly in devices, requiring the installation of more expensive and efficient electronic components. Alongside consumer electronics, the MWC fair has become an arena for the expansion of the Chinese automotive industry into Europe. The Geely conglomerate confirmed its entry into the Spanish market with two long-range SUV models, directly challenging Tesla. In the digital services segment, a significant policy change by HBO Max was also noted, which, following the lead of streaming pioneers, is introducing a global password-sharing crackdown. The market is entering a phase of consolidation and restrictions, where technological innovation must contend with an increasingly difficult economic reality.The smartphone market has experienced similar turbulence before, in 2012, but the current downturn combines a raw material crisis with the rapidly increasing technological demands placed by AI software.„Smartphone market facing crisis like no other.” — Nabila Popal

Mentioned People

  • Nabila Popal — IDC analyst specializing in the global mobile devices market.