As memory chip shortages intensify, leading smartphone brands are building inventories at levels surpassing last year’s tariff-driven stockpiling to protect margins.
Major smartphone manufacturers are building inventory in the United States (US) at a faster pace than during the tariff-related stockpiling seen in 2025, as concerns over memory chip availability and rising component costs reshape supply chain strategies.
According to Counterpoint Research’s report, inventory levels among leading smartphone brands increased during the first half of 2026 as companies sought to secure devices produced with lower-cost memory components before anticipated price rises take effect.
Apple has accumulated weeks of inventory that exceed levels recorded during the tariff-driven buildup of 2025. The increase follows a period in which the company faced challenges meeting demand for its iPhone 17 series in the US market. Higher inventory levels may help Apple mitigate the impact of rising memory costs and maintain pricing stability through the remainder of 2026.
The company had previously expanded shipments to the US ahead of potential tariff measures in 2025 while also increasing production in India. Despite those earlier efforts, channel inventory remains higher than a year ago.
Meanwhile, Samsung has also expanded inventory levels year-on-year. The increase has been supported by shipments of the Galaxy S26 series and continued distribution of the Galaxy A16 and Galaxy A17 models.
Counterpoint noted that inventory growth has continued despite weakness in the US prepaid smartphone segment, suggesting Samsung is seeking to secure sufficient supply before memory costs rise further and LPDDR4 memory availability tightens.
Motorola recorded the highest inventory levels among Android smartphone vendors in the US, according to the report. The company began increasing shipments in late 2025 and continued through early 2026, despite softer sales performance. Motorola remains particularly exposed to memory pricing pressures because several of its highest-volume devices rely on LPDDR4 memory and are concentrated in the price-sensitive prepaid market.
The report said the growing demand for memory chips used in artificial intelligence applications is creating supply constraints that could have a broader impact on the smartphone industry than recent tariff disruptions. The research firm noted that manufacturers are increasingly adjusting procurement strategies, product roadmaps and inventory management practices to navigate ongoing component shortages.
While smartphone sales have so far remained resilient, sustained memory cost inflation could place additional pressure on device pricing, particularly in entry-level and mid-range segments where consumers are more sensitive to price increases.
