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Sign InAmid mounting pressure on global supply chains from AI data-center expansion, recent data showed a sharp drop in smartphone demand inside China. According to reports, shipments fell 17% year-over-year to 17 million units in June, with full-year 2026 volumes now expected to decline 10% due to higher memory costs. Analysts link the contraction to tightening supply of advanced chips used in electronic devices.
The development comes as AI-driven data-center construction continues to absorb advanced memory supply and push component prices higher. Goldman analyst Allen Chang noted the pressure is increasingly visible in China’s handheld-device market, weighing on consumer demand.