Samsung plans to raise the prices of its upcoming Galaxy S26 series by $30 to $60 due to rising costs, marking a departure from its previous policy of no price increases for flagship models, except for the Galaxy S24 Ultra. The price hike will mainly affect South Korea, while the US prices are expected to remain lower, with the Galaxy S26 starting at $799.99. The increase is driven by rising memory and component costs, as well as currency volatility.
Asus has announced it will not release new Android smartphones in 2026, focusing instead on maintenance and support for existing devices, though it has not ruled out the possibility of future releases.
The Trump Organization announced a $500 'Made in America' smartphone called the T1, but industry experts are skeptical about its feasibility due to the complexities and costs of domestic electronics manufacturing, and the lack of details about the production process and components. The device is expected to be assembled overseas initially, with plans to eventually manufacture in the U.S., but experts doubt the product's viability at the claimed price point.
Xiaomi plans to officially unveil its custom 3nm chipset next year, marking a significant shift from its reliance on Qualcomm and MediaTek. The company is expected to partner with TSMC for mass production, despite potential trade sanctions from the U.S. due to geopolitical tensions. This move could increase competition in the smartphone industry, as Xiaomi aims to enhance profitability and reduce dependency on external chipset suppliers.
Qualcomm is suing Transsion, the fourth-largest smartphone maker globally, over four non-standard essential patents. Transsion, which primarily uses MediaTek and Unisoc chips, does not currently sell devices with Qualcomm chips, complicating Qualcomm's usual licensing strategy. The lawsuit could force Transsion to pay licensing fees, potentially impacting its budget-focused business model. Transsion is also facing legal pressures from Phillips and Nokia over patent issues.
Apple's iPhone shipments fell by nearly 10% in the first quarter of the year, while the global smartphone market saw a 7.8% rise in shipments, with Samsung regaining the top spot. Budget-focused brand Transsion experienced an 85% increase in shipments, and Xiaomi Corp. closed the gap on second-place Apple.
Smartphone giants like Samsung are gearing up to promote "AI phones" at the upcoming Mobile World Congress, with a focus on on-device AI powered by large language models. These devices will feature more advanced chips to run AI applications and are expected to offer new capabilities such as generative AI for tasks like text-to-image creation and meeting summarization. While AI has been present in devices for some time, the new era of on-device AI with large language models is still in its early stages, and it may take several years for third-party developers to identify compelling use cases for consumers.
Qualcomm reported better-than-expected fourth-quarter earnings, with adjusted revenue of $8.67 billion and adjusted EPS of $2.02. The company also provided a strong forecast for the current quarter, expecting adjusted earnings of $2.25 to $2.45 per share on sales of $9.1 billion to $9.9 billion. Despite a 24% decline in revenue year-over-year, Qualcomm's automotive business showed growth, increasing 15% to $535 million in sales. The company's "Internet of Things" business declined 31% to $1.38 billion in revenue. Qualcomm aims to position itself as an AI company, highlighting its chips with AI features and its roadmap for generative AI and mobile computing performance.
The US Commerce Secretary, Gina Raimondo, stated that there is no evidence that Huawei can mass produce smartphones with advanced semiconductors, contradicting recent reports suggesting the company's return to the 5G smartphone industry. Huawei's launch of the Mate 60 Pro, powered by a 7nm system-on-chip (SoC) produced by China's SMIC, seemed to indicate progress in China's semiconductor industry. However, Raimondo's comments highlight the impact of US sanctions on Huawei's access to high-end chipmaking tools. The future of China's advanced chipmaking industry is further uncertain as Oppo, another Chinese smartphone giant, disbanded its semiconductor unit.
Despite the usual trend of older consumer electronics losing appeal and facing competition from cheaper rivals, Apple's iPhone has defied gravity by increasing its share of smartphone sales and expanding its dominance in key regions such as China, Japan, Europe, and India. In the United States, the iPhone now accounts for over 50% of smartphones sold. Apple has managed to overcome price sensitivity by creating a business model similar to U.S. car sales, where iPhones can be resold and wireless providers offer discounts and monthly payment plans. The iPhone's popularity is expected to continue growing, especially among teenagers who see it as a status symbol. Apple's ability to retain customers and convert Android users has contributed to its success, while its main competitors, Samsung and Huawei, have faced setbacks. However, new challenges, such as Huawei's latest smartphone release and nationalist sentiments in China, may threaten Apple's lead. Nevertheless, Apple is predicted to offset any potential decline in China with growth in India, where it has been working to improve affordability and expand its market presence.
Apple is reportedly considering raising the price of its high-end iPhone Pros when new models are released this fall, potentially boosting the company's overall revenue. The new models may also feature a USB-C charger, a titanium case, and thinner bezels. Despite a decline in overall smartphone shipments, analysts believe there is still demand for premium devices, which could justify the price increase. Apple has not yet commented on the potential price hike.
Huawei is planning a comeback in the 5G smartphone industry by the end of this year, according to research firms. Despite a US ban on equipment sales that severely impacted its consumer electronics business, Huawei is expected to procure 5G chips domestically using its own semiconductor design tools and chipmaking from Semiconductor Manufacturing International Co (SMIC). The return to the 5G phone market would be a victory for Huawei, which faced restrictions on chipmaking tools since 2019. However, limited chip supply and the absence of Google's Android operating system may hinder Huawei's appeal outside of China.
Huawei is planning a comeback in the 5G smartphone industry by the end of this year, according to research firms. The company is expected to procure 5G chips domestically using its own semiconductor design tools and chipmaking from Semiconductor Manufacturing International Co (SMIC). Huawei's consumer electronics business was severely impacted by a US ban on equipment sales, but with access to 5G chips, the company aims to regain its position in the market. However, limited chip yields and the absence of Google's Android operating system may pose challenges for Huawei's success outside of China.
