Facing challenges from soaring memory prices, inflation, and geopolitical risks, the global smartphone demand is widely expected to decline by 2-3% in 2026. However, Samsung Electronics, as one of the world's largest memory suppliers, holds an advantage this year in securing mobile memory supply and controlling costs compared to competitors.

Telecom broadband equipment maker Sercomm Corporation said on February 6, 2026, that its revenue for January 2026 reached NT$5.18 billion (US$164 million), up 32.9% from NT$3.9 billion in the same period in January 2024.

MediaTek said smartphone-related revenue is expected to fall sharply in the first quarter of 2026. The company's smartphone segment recorded a quarterly revenue high in the fourth quarter of 2025, with full-year revenue exceeding US$10 billion, up 8% year-on-year and setting a new record. Flagship chips accounted for US$3 billion of that total. Based on end-market demand, MediaTek's smartphone chip shipments are estimated to be split roughly 30% for high-end models and 70% for mid- and low-tier devices.

Texas Instruments (TI) recently announced that it will acquire IoT wireless connectivity specialist Silicon Labs for US$7.5 billion, with the deal expected to be completed in the first half of 2027. The announcement surprised the market, as it marks TI's largest acquisition since its purchase of National Semiconductor in 2011.

The smartphone sector is entering a new hardware upgrade cycle driven by AI. Yet the impact is proving far more disruptive than positive. Rapidly rising memory prices are reshaping cost structures and market dynamics, squeezing handset makers' margins to the limit and pushing low-end smartphones close to a financial breaking point.

Qualcomm and MediaTek struck a similar cautionary tone on the smartphone market outlook during their latest earnings calls, pointing to mounting pressure from memory shortages and rising component costs. Pressure is already being felt across the supply chain, with these factors expected to place substantial strain on smartphone brand customers, particularly Chinese brands.

Qualcomm delivered record results in its fiscal first quarter, but executives warned that a worsening memory supply imbalance is now constraining the global smartphone market, even as underlying consumer demand remains strong.

China's smartphone market ended 2025 on a weaker note than expected, despite Apple's strong fourth-quarter earnings and the early success of the iPhone 17. December shipments fell sharply, dragging full-year volumes down and dimming hopes of a broader market rebound.

Sony has recently chosen to partner with TCL in managing its Bravia TV brand, reflecting the long-standing downturn of the Japanese vendor's television business. In Japan, once-dominant domestic TV brands have largely been replaced by rising Chinese competitors.

During MediaTek's earnings call on February 3, CEO Rick Tsai cautioned that smartphone demand is expected to encounter difficulties in 2026. Contrasting this outlook, Pegatron chairman Tzu Hsien Tung expressed a more optimistic view, highlighting the dominance of smartphones over the past 16 years and the potential for future growth driven by emerging markets.

Texas Instruments (TI) has announced that it has reached an agreement to acquire chip designer Silicon Laboratories for approximately US$7.5 billion, marking the largest deal for TI since its US$6.5 billion purchase of National Semiconductor in 2011. The acquisition underscores TI's strategy to strengthen its presence in wireless connectivity chips for industrial, consumer, and smart-device applications.