JAKARTA - The smartphone market in China is still sluggish. In February 2026, mobile phone shipments fell 14.6 percent compared to the same period last year to 16.79 million units. Citing a report by China Daily, Thursday, April 2, this decline occurred amid rising prices of memory components and mobile phone prices.
This condition triggered an estimate that 2026 could be the most difficult year for the smartphone industry in more than a decade. Counterpoint Research estimates that the global market could experience the worst contraction in smartphone history. Global shipments are projected to fall below 1.1 billion units, or a 12.4 percent decline. If that happens, the level will be the lowest since 2013.
China Daily, International Data Corporation (IDC) also saw the same direction. The US-based research institute projects global smartphone shipments to fall 12.9 percent to 1.1 billion units in 2026, also the lowest since 2013. In China, shipments are expected to shrink 10.5 percent to 255 million units. That will be a new low since 2012.
According to IDC, one of the main triggers comes from the expansion of the artificial intelligence or AI industry. This industry expansion triggers a shortage of memory chip supplies and drives sharp price increases. The impact is immediately felt on the cost of producing mobile phones.
However, despite the market weakening, competition remains tight. Chinese mobile phone manufacturers continue to push new products. Vivo, for example, launched its latest flagship line, the vivo X300, including the newly announced X300 Ultra and X300 Super.
Vivo says this line is designed to bring the capabilities of mobile phones with cameras closer. "We are introducing a new imaging device that combines the ideal focal length and high image quality of the camera with the portability and computational photography of smartphones," said Vivo Product Vice President Huang Tao as quoted by China Daily.
The market is sluggish, while production costs are rising. But Chinese mobile phone manufacturers are still pushing new models. In the midst of a market downturn, competition is now shifting to features and technology.
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