Global smartphone buyers may see continued pricing pressure across display supply chains as a weak handset recovery and rising memory costs weigh on panel makers. In China and other markets, aggressive promotions have not revived replacement demand, leaving flexible AMOLED panels under the heaviest pressure into the third quarter.
The smartphone market remains sluggish as 2026 heads toward the end of its second quarter, despite steep discounts during China's 618 shopping festival. Industry sources said the promotions failed to deliver the expected lift in end-user upgrades, underscoring how fragile demand remains.
Sharply higher memory prices, including DRAM and NAND flash, are raising the manufacturing costs of branded device makers. That is narrowing the room for promotions and making brands more cautious in their procurement, which in turn is keeping handset demand subdued.
With supply and demand still out of balance, the smartphone supply chain is facing a dual squeeze from higher costs and weaker orders. That environment is continuing to pressure prices across multiple display technologies.
Among LCD products, the a-Si LCD smartphone panel market is relatively stable. Demand from brand customers rebounded in the second quarter compared with the first, and buying from the repair market also increased, helping major production lines maintain high utilization. Although upstream IC and flexible printed circuit costs are still rising, brands continue to hold a stronger bargaining position, and suppliers are largely being asked to absorb the added expense. As a result, prices are expected to remain steady in the near term.
LTPS LCD panels are being supported more by non-smartphone applications than by handset demand. Growth in automotive displays, alongside new notebook and tablet launches, has helped keep production lines busy. Even so, competition remains intense for new smartphone projects, and panel makers are lowering quotes to secure orders. Existing mass-production projects are holding relatively steady, while prices for newly introduced models are still easing. CINNO Research expects LTPS LCD smartphone panel prices to be broadly stable with a slight decline in June.
AMOLED panels are under greater strain. CINNO Research said hard AMOLED prices still have room to fall in June, though declines are expected to narrow after July as pricing approaches a floor.
Flexible AMOLED panels are facing the sharpest pressure. Slowing demand for premium smartphones, together with higher memory costs that are eating into brand budgets, has reduced end-market demand and left many panel makers with weaker utilization rates. To win limited projects, suppliers are continuing to cut prices, intensifying competition. CINNO Research expects flexible AMOLED smartphone panel prices to fall further in the third quarter.
Article translated by Jingyue Hsiao and edited by Joseph Tsai
