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Smartphone Market Faces Decline

Global smartphone shipments are expected to fall sharply in 2026, reaching their lowest level in more than a decade.

Rising memory chip costs are driving up production expenses, forcing manufacturers to reconsider pricing strategies and product positioning.

Lower-cost device makers are likely to be most affected as supply pressures reshape the competitive landscape.

Premium brands may benefit from the shift, with stronger financial resources allowing them to absorb cost increases more effectively.

The development reflects how expanding demand for advanced computing infrastructure is influencing consumer electronics markets.

Industry forecasts suggest a gradual recovery in the following years, though structural changes may persist.

Qualcomm’s Strong Forecast Overshadowed by Expected Samsung Loss

Qualcomm projected stronger-than-expected quarterly sales and profit on Wednesday, buoyed by a rebound in premium smartphone demand, but its stock slipped in after-hours trading amid concerns over a potential loss of business from Samsung next year.

For the quarter ending in December, the chip designer forecast revenue and adjusted earnings at midpoints of $12.2 billion and $3.40 per share, beating analyst expectations of $11.62 billion and $3.31, according to LSEG data.

However, CEO Cristiano Amon said the company expects to supply about 75% of the modem chips for Samsung’s upcoming Galaxy S26 lineup — down from 100% for the current Galaxy S25 models. The announcement sent Qualcomm shares down 2.7% in extended trading after a 4% rise earlier in the day.

Despite the setback, Amon emphasized that Qualcomm is diversifying beyond smartphones into automotive, laptop, and data center chips, as longtime client Apple moves toward producing its own modems.

He also revealed that Qualcomm is in discussions with a “large hyperscaler” — an AI-focused computing company — following its recent deal with Humain, an AI firm backed by Saudi Arabia’s sovereign wealth fund.

The company’s fiscal fourth-quarter results also outperformed expectations, with $11.27 billion in sales and $3 per share in adjusted profit, compared to estimates of $10.79 billion and $2.88.

Amon said the forecast reflects a surge in demand for high-end smartphones capable of running AI applications, especially in markets like China and India, where consumers are “upgrading from mid-range to premium.”

EU Mandates EPREL Labels on Electronic Devices From June to Display Battery Life and Key Specifications

Starting June 2025, electronic devices sold within the European Union—including smartphones, tablets, and certain cordless phones—will be required to include a new EPREL (European Product Registry for Energy Labelling) sticker. This move is part of the EU’s broader Energy Labelling Regulation, officially adopted by the European Parliament on April 16, 2024. The new rule aims to empower consumers with clearer, standardized information about a device’s energy efficiency, battery life, and durability. By doing so, the regulation promotes more sustainable purchasing decisions and encourages manufacturers to prioritize long-term performance.

The EPREL sticker, also known as the ENERGY label, must be included inside the packaging of all newly marketed devices beginning June 20, 2025. This label will display key performance metrics, such as battery endurance, energy class, water and dust resistance, and drop protection. It will also include a repairability score to inform users how easy the device is to fix—an effort to reduce e-waste by extending product lifespans. Notably, the label must be updated if any specification changes occur, such as through software or firmware updates that affect power or performance.

The regulation covers a wide range of devices: smartphones with cellular or satellite capabilities, feature phones without internet access or third-party apps, tablets with screen sizes between 7 inches and 17.4 inches, and even cordless landline phones. However, mobile phones and tablets that feature a flexible primary display—like foldable phones—are exempt from the requirement. This selective application highlights the EU’s intent to focus on mainstream consumer electronics that have high turnover rates and energy consumption.

According to the European Commission, this regulation is designed to support informed decision-making and encourage consumers to consider sustainability factors alongside technical specifications when choosing electronic products. It places added responsibility on original equipment manufacturers (OEMs), who must ensure the EPREL label remains accurate throughout the product’s lifecycle. If changes like operating system updates significantly alter a device’s energy profile, companies will be required to retest the device and revise the label accordingly. This push toward transparency is a notable step in the EU’s larger sustainability agenda, aligning with its goals to reduce environmental impact and promote a circular economy.