Skyrocketing memory prices starting in 2025 are expected to drive a double-digit decline in global smartphone production in 2026, reshaping the market landscape. Leveraging their strong financial positions and high-end market focus, Apple and Samsung are expanding their market shares against the overall downtrend. In contrast, Chinese brands (HOVX), which traditionally compete on high cost-performance ratios, have seen their costs multiply and are forced to drastically cut production to preserve cash flow. Furthermore, Huawei is aggressively capturing market share by relying on its mid-to-high-end positioning and strong ecosystem, further squeezing its peers. Consequently, the overall market share of Chinese brands has dropped significantly, marking a pause in their decade-long expansion.

Key Highlights

• Market Reshaped: Soaring memory prices are reshaping the smartphone landscape, halting a decade of market share growth for Chinese brands.
• Production Slump: TrendForce projects a double-digit YoY drop in 2026 global smartphone production, potentially falling below 1 billion units.
• Huawei Defies the Trend: Driven by its mid-to-high-end focus, HarmonyOS ecosystem, and stable pricing, Huawei continues to expand in China despite the downturn.
• HOVX Hardest Hit: Squeezed by shrinking overseas low-end sales and domestic pressure from Huawei, brands like Xiaomi, Oppo, vivo, and Honor face severe cuts in both market share and production.
• PC Brands' Resilience: PC brands show greater resilience to memory inflation than Chinese smartphone makers, supported by high-margin server revenues, lower shipment volumes, and less financial pressure for inventory.

Table of Contents

1. Updates on Smartphone Market
   • Global Market Share of Chinese Smartphone Brands vs. That of Non-Chinese Brands
   • Price Trends of Smartphone Memory Products

<Total Pages: 4>