Surge in Global Memory Prices Impacts Mobile Phone Market: Key Insights for 2026

• Global memory prices have increased by 80% – 90%, affecting all categories such as DRAM and NAND.
• Many mobile phone manufacturers are lowering shipment forecasts due to rising costs, while Huawei remains optimistic.
• The mobile phone industry is projected to face a 10% to 15% reduction in production as costs escalate.

Recent findings by esteemed market research firm Counterpoint Research reveal a staggering increase in global memory prices, soaring by 80% – 90% since the first quarter of 2026 compared to the end of 2025. This dramatic rise includes all memory types such as DRAM, NAND, and HBM, marking unprecedented price levels that have significant repercussions for the global consumer electronics supply chain.

According to insights from a recognized digital analyst, the escalating costs of essential materials like memory have caused mainstream mobile phone manufacturers to adopt a pessimistic outlook. As a result, these companies are substantially reducing their forecasts for new phone shipments in 2026. In a stark contrast to this trend, one prominent brand has defied the current market conditions by raising its annual shipment target to approximately 70 million units, strategically focusing on the Chinese market as a cornerstone of its operations.

While the analyst did not disclose the name of this resilient brand, speculation from netizens hints strongly at Huawei. This notion is supported by recent third-party sales data, which indicates that Huawei has captured significant market share, reigning as the leader in China’s mobile phone market with an impressive 18.6% share in January alone. The Mate 80 standard version has particularly shone, achieving over 1.5 million activations, making it the top-selling model in the domestic flagship category during the latter half of the previous year.

However, on a broader scale, the mobile phone industry is likely to encounter downward pressure throughout 2026. The sharp rise in storage costs is squeezing manufacturers’ profit margins, inevitably leading to increased retail prices and dampening consumer purchasing power. Research firm TrendForce anticipates that global mobile phone production will decline by 10% this year, with total output projected to fall to roughly 1.135 billion units. If memory prices remain unchecked in the coming months, market contractions could escalate beyond 15%, heralding an earlier-than-expected industry shake-up.

This landscape necessitates strategic planning and adaptability from mobile manufacturers to navigate the evolving market challenges. Emphasizing innovation and efficiency in design and production processes will be crucial to sustaining competitiveness in these turbulent times. As consumers become increasingly price-sensitive, manufacturers must strike a balance between cost management and delivering value to end-users.

In conclusion, the ongoing surge in memory prices presents both challenges and opportunities for mobile phone manufacturers. While many are struggling to adjust their forecasts, brands like Huawei are using this scenario to consolidate their market position. As 2026 unfolds, the focus will likely shift towards cost control, strategic partnerships, and an increased emphasis on the development of high-value, innovative products to attract discerning consumers in an increasingly competitive environment.