According to Chinese media, Xiaomi, OPPO, vivo, and Transsion will reduce device production throughout 2026 due to component shortages. That said, what should you know about it?
Only entry-level and mid-range devices will be affected
For your information, the ones that will be affected are mid-range and affordable devices as the focus will be on flagship devices only. All four manufacturers are predicted to reduce their device production by between 10-20% throughout this year.
Although an official statement has not yet been released, it is in line with the market situation where the data center industry will take 70% of global memory production this year with the component shortage issue only expected to be resolved in 2029.
Moreover, Omdia analyst Amber Liu recently pointed out in her analysis of 2026 mobile phone market trends that the industry is gradually moving away from a growth logic centered on shipment volume and entering a new stage dominated by value reconstruction. The key in 2026 will no longer be how many phones manufacturers can sell, but rather what price range and configuration consumers are willing to pay.
She also pointed out that DRAM and NAND prices are expected to remain high, and may even rise further. For some emerging markets, the continued rise in costs may be difficult for manufacturers to fully absorb. Therefore, she revised her forecast for the global smartphone market in 2026 from moderate growth to a decline of approximately 1%
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