As generative AI (Gen AI) and sensing technologies mature, AI glasses are evolving from standalone wearables into a new generation of human-computer interaction interfaces. Featuring first-person perspective, scene recognition, and hands-free operation, these devices are seen as an ideal extension of smartphones with the potential to disrupt mainstream mobile hardware design.

Apple Inc., Qualcomm Inc., and MediaTek are all set to advance their smartphone system-on-chip (SoC) offerings to the 2nm process node in 2026. This coordinated move signals the three giants' determination to maintain technological leadership, even as the incremental benefits of process improvements come under scrutiny.

China's major smartphone manufacturers are revising their 2026 shipment forecasts downward amid tightening memory supply and surging prices, according to Jiemian News. Xiaomi, Oppo, Vivo, and Transsion have reportedly reduced their full-year smartphone shipment forecasts amid escalating upstream material costs that are increasingly pressuring mid- to low-end device segments, particularly those targeting overseas markets.

Leading smartphone system-on-chip (SoC) manufacturers will fully adopt the 2nm process node in 2026, a move expected to significantly increase production costs and reshape competitive dynamics beyond flagship devices.

Vivo has recently shown strong performance driven by robust sales of its X300 smartphone series. However, as the company looks to 2026, industry analysts warn that it will encounter substantial challenges from Huawei's resurgence in China, Xiaomi and Oppo's aggressive strategies, and the anticipated success of Apple's iPhone 17.

Memory price increases are significantly affecting consumer electronics, with smartphones and notebooks facing the greatest challenges, while TVs experience milder but still notable impacts. The surge in memory costs is not only driving up production expenses but also compressing profit margins for vendors and system integrators globally.

MediaTek has launched the Dimensity 9500s and Dimensity 8500 mobile processors, both carrying over key technologies from the company's flagship Dimensity platform. The new chips deliver upgrades in performance, power efficiency, AI processing, imaging, gaming, and connectivity, targeting the premium smartphone market.

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.

Rising memory prices have pushed up smartphone bill of materials (BOM) costs, potentially affecting shipments for 2026. As the smartphone panel market enters its seasonal off-peak period, the effects of higher memory prices are beginning to surface. Pull-in momentum from end-device makers has slowed, leading to across-the-board declines in smartphone panel prices across different technology types.

The National Communications Commission (NCC) recently released its Communications Market Report, revealing that Taiwan's over-the-top (OTT) streaming service market has shown signs of decline after years of steady growth. The report highlights a sharp fall in the proportion of Taiwanese consumers paying for OTT subscriptions, dropping from 58.6% in 2024 to 45.4% in 2025, falling below the 50% threshold for the first time.

Taiwan's telecom market continued gradual growth in 2025 despite high penetration rates, with the top three operators—Chunghwa Telecom (CHT), Taiwan Mobile (TWM), and Far EasTone Telecommunications (FET)—all delivering better-than-expected financial results.