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Huawei to hold the line as memory price surge hits China’s smartphone makers: report
As higher memory prices raise costs for China’s handset makers, a research firm predicted Huawei would increase shipments in the first quarter of 2026
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Howard Liuin BeijingPublished: 2:18pm, 2 Jun 2026Updated: 5:00pm, 2 Jun 2026
Chinese smartphone makers are preparing for their most challenging year since the Covid-19 pandemic, as analysts say skyrocketing memory chip prices are forcing brands to make a difficult choice: absorb the higher costs, raise retail prices or downgrade storage configurations.
In a report published on Monday, market research firm Counterpoint projected that global smartphone shipments would plunge nearly 14 per cent this year to about 1.08 billion units – the industry’s lowest volume since 2013.
The sharp contraction was being driven by the dual blow of soaring memory costs and sluggish consumer demand for replacement handsets.
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However, market pressure is likely to hit vendors unevenly, Counterpoint said. Apple and Samsung Electronics are expected to weather the downturn best, shielded by stronger pricing power and premium-heavy product portfolios.
Meanwhile, Chinese Android-based brands, led by Xiaomi, face a harsher profit crunch because of their thinner hardware margins and heavier reliance on price-sensitive segments.Advertisement
Other Chinese Android vendors, including Oppo, Vivo and Transsion, are also expected to face pressure as higher component costs weigh on their price-sensitive product lines and overseas emerging-market sales.
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