CONNECT WITH US
Jul 21
Phone prices to surge in 2H26 as low-end models fade

As the AI boom keeps memory shortages running hot, steep price hikes for smartphones in the second half of 2026 are coming into view. Global market researchers have issued increasingly bleak forecasts, warning that "chipflation" could last through 2027 and that surging memory prices are already lifting the cost of consumer devices.

Samsung Electronics is expected to rely heavily on Qualcomm chips in its next Galaxy phones, according to market reports, a sign that the company is still prioritizing flagship performance and AI features over wider use of its in-house Exynos processors. The expected shift comes as memory prices rise and pressure builds on smartphone costs.
The global foldable smartphone market is entering a new product cycle as Apple prepares to debut its first foldable iPhone and Samsung Electronics reportedly reshapes its foldable portfolio around a wider display format. The simultaneous shift by the industry's two largest premium smartphone brands could accelerate the adoption of a new form factor, with the 4:3 aspect ratio emerging as the next battleground in foldable device design.
China's smartphone market is seeing a shift in demand trends. Xiaomi has reportedly raised its full-year 2026 smartphone shipment target from about 90 million units to 110 million, a roughly 16% increase, as the company expects consumer memory prices to be near a sustainable peak and close to reversing.

AI data center expansion and high-speed network upgrades continue to support demand for networking equipment. However, as the industry enters the second half of 2026, supplies of key components—including memory, printed circuit boards (PCBs) and passive components—remain tight, with lead times extending significantly.

OnePlus is exiting the North American and European markets for its future product launches, while sales of new Realme products will be suspended within its home market of China. The changes to both Oppo sub-brands signal the challenges low- to mid-tier brands face amid rising component costs and a tough global smartphone market this year.

Apple Intelligence has passed a key regulatory milestone in China, bringing the iPhone maker closer to launching generative AI features for mainland users after a prolonged delay.
As AI server interconnects advance toward 1.6T and co-packaged optics (CPO), high-power continuous-wave (CW) lasers are becoming a strategic battleground for global technology companies. At the heart of these optical engines, indium phosphide (InP) manufacturing is shifting toward larger 4-inch and 6-inch wafer production. While existing suppliers have yet to fully meet growing demand, Taiwanese companies may find an opportunity to break into the market by addressing the widening supply gap.
Apple has sued OpenAI for allegedly stealing trade secrets, but the real fight is over who controls the entry points of AI. As LLM technology converges, the case shows that competition is shifting back to a fundamental question: on what device, and in what way, will users use AI?
Samsung Electronics unveiled a new titanium-based display structure on July 15, designed to reduce screen crease visibility while improving durability and preserving a slim profile in its next generation of Galaxy foldable devices.

Taiwan's Legislative Yuan Transportation Committee approved amendments to Article 36 of the Telecommunications Management Act in its first reading on July 13, significantly relaxing restrictions on foreign ownership and nationality requirements for satellite operators. The move is widely viewed as paving the way for SpaceX's Starlink to enter the Taiwanese market.

OnePlus, an Android brand that once cultivated a devoted following among enthusiasts, is reportedly preparing to cease operations in the US and Europe as early as this week, a withdrawal that reads less like an isolated stumble than a symptom of a smartphone market where soaring component costs are pricing value-focused vendors out.