Budget-based Chinese smartphone makers are expected to face substantial pressure with some price sensitive brands experiencing declining volumes of up to 34 percent.
Samsung Electronics is on track to reclaim its position as the world’s largest smartphone vendor from Apple in 2026, as an intensifying memory chip shortage reshapes global market dynamics and puts pressure on competing manufacturers.
According to market research firm Counterpoint Research, the South Korean manufacturer may see a modest growth of 0.8 percent, with an integrated supply chain and a matured distribution network.
“Samsung’s return to the top position comes down to its internal component capabilities, broad portfolio and established operator and retail relationships, ,” said Yang Wang, principal analyst at Counterpoint Research.
Just like Samsung, Apple is expected to show some resilience but analysts maintain a cautious outlook for the iPhone maker.
Market observers also note that upcoming flagship developments—such as Apple’s anticipated entry into foldable handsets and ongoing enhancements to on-device AI—are unlikely to ignite a widespread upgrade cycle sufficient to offset broader market headwinds.
Budget-focused Chinese smartphone makers are expected to face substantial pressure amidst the shortage in global supply of memory chips. Some price sensitive brands may experience declining volumes of up to 34 percent according to Wang.
Huawei, is the only Chinese brand that has built up its own hardware supply-chain, just like Samsung and is expected to show some sustained growth.
Other Chinese brands have started to reorganise them with Oppo curtailing its Oneplus brand and peers like Xiaomi, Vivo and Honor devices are developing more premium models that can absorb high prices of the components.
Due to memory supply crunch, Counterpoint noe expects global phone shipments to decline by 14.3 percent, with Chinese manufacturers bearing the maximum brunt. The broader market is set to decline in 2027, before recovering in 2028, according to Counterpoint.
