Rising component costs are beginning to weigh heavily on the global smartphone market, with higher prices on new models expected to create clear production headwinds from the second quarter of 2026, according to the latest smartphone research from TrendForce.
TrendForce notes that since the second half of 2025, the handset industry has faced mounting pressure from tightening memory supply and sharply increasing memory prices. These cost pressures have filtered through to end products, forcing manufacturers to raise retail prices and dampening consumer demand in an already cautious market environment.
While major smartphone brands have largely maintained their production plans for the first quarter of 2026, TrendForce expects the impact of higher prices on newly launched models-introduced to absorb rising costs-to become more pronounced from the second quarter. This shift is likely to negatively affect production performance as consumers react to more expensive devices.
