{"id":80777,"date":"2026-06-26T11:35:47","date_gmt":"2026-06-26T08:35:47","guid":{"rendered":"https:\/\/saudishopper.com.sa\/en\/iot-module-shipments-decline-q1\/"},"modified":"2026-06-26T11:35:59","modified_gmt":"2026-06-26T08:35:59","slug":"iot-module-shipments-decline-q1","status":"publish","type":"post","link":"https:\/\/saudishopper.com.sa\/en\/iot-module-shipments-decline-q1\/","title":{"rendered":"Memory Costs Drive 17% Decline in AI IoT Module Shipments"},"content":{"rendered":"<p class=\"wp-block-paragraph\"><a href=\"\/category\/smart-devices\/\">IoT module shipments<\/a> equipped with <a href=\"\/category\/ai\/\">artificial intelligence<\/a> fell by 17% year-on-year in the first quarter of 2026, according to data from Counterpoint Research. This decline ended a period of steady growth recorded throughout 2025.<\/p>\n<p class=\"wp-block-paragraph\">The research firm attributed this downward trend to the rising cost of memory components. Consequently, these expenses had a greater impact on units that require high on-board processing capabilities.<\/p>\n<h2 class=\"wp-block-heading\">Impact of Memory Costs on Hardware<\/h2>\n<p class=\"wp-block-paragraph\">Hardware configurations played a significant role in the market shift. Specifically, modules fitted with central processing units (CPUs), graphics processing units (GPUs), and neural processing units (NPUs) for localized computing drove the overall decline.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>&#8220;The different cost structure and component dependencies affected the growth and adoption of these two approaches.&#8221;<\/p><cite>Tina Lu, Senior Analyst at Counterpoint Research<\/cite><\/blockquote>\n<h2 class=\"wp-block-heading\">Alternative Designs in IoT Module Shipments<\/h2>\n<p class=\"wp-block-paragraph\">Meanwhile, modem-AI modules, which integrate intelligence directly into the modem, recorded a modest increase. Notably, these specific variants do not rely on external memory and do not perform application processing.<\/p>\n<p class=\"wp-block-paragraph\">This alternative design has found traction in specific sectors. As a result, the demand for these modules remains steady in enterprise environments.<\/p>\n<h2 class=\"wp-block-heading\">Market Drivers and Price Increases<\/h2>\n<p class=\"wp-block-paragraph\">Mohit Agrawal, director of the IoT practice at Counterpoint Research, linked the positive performance of modem-based modules to specific applications. Specifically, these include routers used for <a href=\"\/category\/telecom\/\">5G<\/a> fixed wireless access alongside various enterprise deployments.<\/p>\n<p class=\"wp-block-paragraph\">However, the average selling price of AI-embedded modules experienced a double-digit increase. This rise, driven by a more expensive bill of materials, ultimately reduced overall customer demand.<\/p>\n<h2 class=\"wp-block-heading\">Overall Market Outlook<\/h2>\n<p class=\"wp-block-paragraph\">Despite the drop, the broader cellular market remains largely unaffected by these shifts. Currently, AI-embedded units represent only 6% of total IoT module shipments.<\/p>\n<p class=\"wp-block-paragraph\">Therefore, analysts expect the wider industry to maintain stability. The sector continues to monitor how memory pricing affects IoT module shipments across global markets.<\/p>\n<h2 class=\"wp-block-heading\">Analysis of Component Dependencies<\/h2>\n<p class=\"wp-block-paragraph\">The distinction between CPU-driven modules and modem-based modules highlights a critical shift in hardware design. Specifically, developers must choose between localized processing power and cost efficiency. Furthermore, the rising bill of materials makes high-end modules less attractive for budget-conscious <a href=\"\/category\/economy\/\">enterprise<\/a> deployments.<\/p>\n<p class=\"wp-block-paragraph\">In addition, the demand for 5G fixed wireless access routers continues to support the modem-AI segment. Consequently, this specific application provides a steady stream of orders for manufacturers. Meanwhile, the broader cellular market remains resilient despite these localized fluctuations.<\/p>\n<h2 class=\"wp-block-heading\">Future Outlook for Cellular IoT<\/h2>\n<p class=\"wp-block-paragraph\">Looking ahead, the market share of AI-embedded units is expected to remain a minor portion of the overall cellular segment. Specifically, the 6% share recorded in the first quarter suggests that standard <a href=\"\/category\/smart-devices\/\">IoT<\/a> modules still dominate the industry. Therefore, the overall impact of memory pricing on the broader market will likely remain limited.<\/p>\n<p class=\"wp-block-paragraph\">However, manufacturers must address the double-digit rise in average selling prices to stimulate future demand. As a result, the industry may see a shift toward more cost-effective designs. Ultimately, the balance between processing power and component costs will shape the next phase of cellular hardware.<\/p>","protected":false},"excerpt":{"rendered":"<p>AI-embedded IoT module shipments fell 17% in Q1 2026 due to rising memory costs, ending a period of steady growth.<\/p>\n","protected":false},"author":13,"featured_media":80776,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_yoast_wpseo_meta-robots-noindex":"","_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_pr_autopilot_social_copy":"{\"x_hook\":\"17% decline was recorded in AI-embedded IoT module shipments during Q1, driven by rising memory costs according to Counterpoint Research.\",\"x_takeaways\":\"Key Highlights:\\n\ud83d\udd39 AI-embedded IoT module shipments fell 17% year-on-year in Q1\\n\ud83d\udd39 Rising memory costs impacted modules requiring high on-board processing\\n\ud83d\udd39 CPU, GPU, and NPU-equipped modules drove the overall market decline\\n\ud83d\udd39 Modem-AI modules recorded a modest rise due to 5G router demand\\n\ud83d\udd39 AI-embedded units accounted for only 6% of total shipments in Q1\"}","_yoast_wpseo_opengraph_title":"Memory Costs Drive 17% Decline in AI IoT Module Shipments","_yoast_wpseo_opengraph_description":"A double-digit rise in average selling prices has impacted demand for AI-embedded IoT modules, while modem-AI alternatives see modest growth.","_yoast_wpseo_opengraph_image":"https:\/\/saudishopper.com.sa\/en\/wp-content\/uploads\/2026\/06\/iot-module-shipments-decline-q1.webp","_yoast_wpseo_opengraph_image_id":80776,"_yoast_wpseo_twitter_title":"Memory Costs Drive 17% Decline in AI IoT Module Shipments","_yoast_wpseo_twitter_description":"Counterpoint Research reports a 17% drop in AI-embedded IoT module shipments for Q1 2026 due to rising memory costs.","_yoast_wpseo_twitter_image":"https:\/\/saudishopper.com.sa\/en\/wp-content\/uploads\/2026\/06\/iot-module-shipments-decline-q1.webp","_yoast_wpseo_twitter_image_id":80776,"_yoast_wpseo_primary_category":443,"_extra_hide_author_box":"","_extra_featured_post":"0","_partner_post_id":111262,"footnotes":""},"categories":[449,443,22],"tags":[4581,2414,5140,5141],"class_list":["post-80777","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ai","category-smart-devices","category-telecom","tag-ai-hardware","tag-counterpoint-research","tag-iot-modules","tag-memory-costs","et-has-post-format-content","et_post_format-et-post-format-standard"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>IoT module shipments - Decline 17% in Q1 | Saudi Shopper<\/title>\n<meta name=\"description\" content=\"IoT module shipments fell 17% in Q1 due to rising memory costs, according to Counterpoint Research. 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