(Corrects Honor's expected shipment decrease in the final paragraph to 16%, not 20%, due to an error in original data) By Che Pan and Casey Hall BEIJING, June 1 (Reuters) - The global smartphone market is heading for its steepest annual contraction on record, with shipments projected to slump by 13.9% this year to 1.08 billion units, Counterpoint Research said on Monday, citing a worsening shortage of memory chips.