Huawei and Apple bend to a tougher market with foldable phones as memory crunch bites

Apple and Huawei are set to launch foldable smartphones next week, aiming to revitalize a struggling global smartphone market, which is projected to decline by 17 per cent in 2026. Apple's September 9 event is closely watched for its first foldable iPhone launch, alongside regular model updates and the debut of new CEO John Ternus.

Huawei plans to unveil its upgraded trifold Mate XT 2 device just two days prior to Apple's showcase. Analysts anticipate Apple's entry into the foldable market to revive growth in a sector plagued by soaring component costs. IDC senior research director Nabila Popal predicts Apple will sell over 17 million foldable iPhones by 2027, capturing nearly 40 per cent of the global foldable market.

The memory chip shortage, driven by surging demand for AI infrastructure, is now impacting the smartphone market. IDC predicts the segment will grow by 13 per cent this year and 18 per cent in 2027, providing the "only silver lining" in a troubled market. Global smartphone shipments are expected to plunge 16.7 per cent this year, marking their sharpest annual decline on record.

Memory chip costs are driving up smartphone prices, with the average global selling price forecast to increase by 27 per cent this year to US$581. Chinese action camera maker Insta360 reported a 94 per cent drop in first-half net profit, citing the rising memory chip costs as the main factor.