Overview
- Counterpoint Research’s preliminary figures show China smartphone shipments fell about 2% year‑on‑year in the second quarter and roughly 3% in the first half of 2026, while Huawei and Apple posted double‑digit shipment gains.
- Rising prices for flash and DRAM have led many OEMs to cut production of low‑end models and focus on higher‑margin phones so they can protect profitability rather than chase unit growth.
- Supply‑chain reports say Xiaomi has raised its 2026 smartphone shipment target from about 90 million to 110 million units, a move company insiders link to a belief that memory prices may soon ease.
- Industry sources warn the underlying shortage may persist because major memory makers are reallocating advanced wafer capacity to high‑margin HBM and server DRAM for AI and data centers, which reduces output for consumer chips.
- The result for consumers and the market is higher device prices and fewer cheap options, and the next few months of memory pricing and OEM guidance will determine whether volumes recover or the market polarizes further.