The reduction in global smartphone display supplies in 2026 will be 7.3%, and the reason again will be a shortage of memory

Decline in demand for smartphone displays in 2026 – key factors

*TrendForce* published a study showing that memory shortages and rising costs are forcing mobile device manufacturers to rethink their plans for the coming year. As a result, a reduction in demand for panels for smartphones is expected.

1. Panel supply forecast
Year Supply (million units) Change
2025 2 310 – 2026 2 140 ‑7.3 %

Thus, after growth that began in 2023, the display market is experiencing a downturn for the first time in several years.

2. Why demand is falling
* Fewer new phone releases – fewer devices → fewer panels.
* Shrinking secondary market – memory shortages and higher prices make repairs less attractive.
* Consumer sentiment remains cautious, not offsetting the drop in sales.

3. Segmentation by panel type
Type Share in 2025 Share in 2026
AMOLED (no memory on controllers) 41.2 % 43.2 %
LTPS‑LCD 4.4 % 2.5 %
a‑Si LCD (mass segment) ≈54.4 % ≈54.4 %

* The shift from LTPS‑LCD to AMOLED in mid‑price models is accelerating.
* In the premium segment, AMOLED remains dominant due to low price sensitivity.

4. Price pressure and procurement strategies
* Rising memory costs increase smartphone production costs, with part of the expense passed on to consumers.
* Manufacturers try to hold prices by increasing pressure on component suppliers – including displays.
* A sharper decline in LCD panel prices is expected in the mid‑to‑low price range.

5. What comes next
The most significant source of uncertainty is a sharp rise in memory prices. How companies will adjust their product mix, inventory, and how consumers will react to higher prices for new devices versus servicing old ones will determine the future of the smartphone display industry.