The surge in artificial intelligence (AI) applications has pushed cloud service providers to increase capital expenditures on data centers, prompting major memory manufacturers to shift production towards high-margin, high-performance products such as HBM and DDR5. This strategic realignment has led to a sharp reduction in the supply of niche memory types, especially those used in network communication devices, exacerbating price hikes and supply shortages that are expected to impact Taiwanese vendors through the first half of 2026.

The ongoing memory supply shortage is impacting overall smartphone shipments, with no immediate resolution in sight. Market forecasts predict a decline in global smartphone demand in 2026 compared with 2025, with entry-level models expected to be hit the hardest. Industry players also anticipate a rise in the average selling price (ASP) of new smartphones in 2026, which is expected to create more favorable conditions for growth in the secondhand smartphone market.

Google is reportedly planning to move the New Product Introduction (NPI) process for its high-end Pixel smartphones to Vietnam, a step that could mark a major shift in the tech giant's supply chain strategy, though export controls from Beijing may slow implementation, according to Nikkei Asia.

Motorola delivered strong smartphone sales in North America and Latin America in 2025, and looks to sustain momentum in 2026 by leveraging product innovation, AI integration, and cross-industry alliances. The company also plans to intensify operations across the Americas and Asia-Pacific markets.

Motorola announced three new smartphone models—edge 70, g57, and g86 Power—in Taiwan on January 12, highlighting a breakthrough in silicon-carbon (SiC) battery technology. The edge 70 features a 4,800mAh SiC battery that reduces its weight to 159g and thickness to just 5.99mm, making it the thinnest smartphone on the market equipped with three 50MP cameras.

Market sources say Xiaomi is expanding its in-house XRing chip lineup. Beyond developing the next-generation XRing O2 on TSMC's N3P process, the company also plans to extend these processors into "non-smartphone" products to further raise its level of self-reliance.

Memory price surges are reshaping the global smartphone market outlook for 2026, according to insiders at Sunny Optical. Significant order reductions from Chinese manufacturers amid soaring memory costs signal challenges ahead for the industry.

Despite ongoing US restrictions on Huawei's access to 5G smartphone chips and Google Mobile Services (GMS), the company has re-established a strong position in China by advancing its HarmonyOS ecosystem and pushing for semiconductor component breakthroughs. In 2025, Huawei briefly returned to the top of China's quarterly smartphone sales rankings and currently remains among the market's top three vendors by share.

Lenovo is aiming to double its business in India over the next three years, leveraging strong growth in its Motorola smartphone segment and its infrastructure and services verticals, according to company executives. Lenovo's Asia Pacific leadership highlighted domestic consumption and the "India for the world" strategy as central to the company's future expansion, with India emerging as one of Lenovo's fastest-growing markets worldwide, according to the Economic Times.

Although CES 2026 is not traditionally a smartphone-focused event, TCL drew attention with its new NxtPaper 70 Pro smartphone. The device features NxtPaper 4.0 display technology, with its most notable difference from conventional smartphones being a dedicated shortcut key that allows users to switch display modes.