In 2026, a shortage of RAM and storage is expected. This creates a difficult year for smartphones. Android phones will face bigger problems than iPhones. However, Google's Pixel phones offer some hope. This is according to new research from Morgan Stanley.
A Morgan Stanley note looks at the smartphone market in 2026. It shows the market will have a tough year. Earlier reports also suggested this.
Morgan Stanley predicts Android phone shipments could drop by 15% this year. iPhone shipments might only fall by 2%. This information comes from a report by 9to5Google, which العربية Business reviewed.
This difference is large. Apple is the only major smartphone brand expected to grow its market share in 2026. Other brands may shrink.
The note says Android brands face high memory costs. This is called 'unprecedented memory cost inflation'. It will cause lower demand for smartphones. Prices will likely go up.
Analyst Max Weinbach from Creative Strategies also noted this. He heard that Apple has its best conversion rate in 5 years. Pixel phones are the only exception for Android. All other major smartphone brands have negative net conversion rates. This means they are losing customers.
This means Pixel and iPhone are the only brands gaining new users. This excludes people updating their current devices. Other brands are losing people.
But Weinbach points out Apple's rate is more important because of its size. Morgan Stanley believes Apple is in the best place to gain the most market share in 2026. Android companies are likely to lose market share.
This happens as Apple has already passed Samsung. Apple is now the world's biggest smartphone brand.