Rising Costs Impact Smartphone Display Market
AMOLED smartphone display shipments are expected to decrease significantly in 2026, with a forecasted 7% year-on-year decline to 778 million units, according to Omdia’s latest report released on 20th April.
Rising memory prices since the second half of 2025 have increased the cost of smartphone components, putting pressure on pricing for new models. This situation particularly affects Chinese smartphone brands that rely on competitive pricing.
Omdia’s report highlights that Apple is in a better position to gain market share due to its stable semiconductor supply chain and higher product margins. This advantage may narrow the price gap with competitors in 2026.
Brands from China, which have traditionally excelled in offering a diverse range of products at aggressive price points, are expected to face substantial challenges. Increased component costs necessitate a reevaluation of their pricing strategies.
Market Uncertainty and Economic Pressures
Global economic challenges, including geopolitical tensions, rising energy costs, and supply chain disruptions, contribute to increased expenses across the value chain. Higher prices for petrochemical raw materials and logistics add to the market uncertainty.
The flexible AMOLED segment is expected to decline for the first time in seven years. Meanwhile, rigid AMOLED shipments are projected to decrease for a second consecutive year, influenced by the shift towards flexible displays.
Despite the overall decline, Apple is expected to adopt a more aggressive sales strategy in 2026, supported by its robust supply chain and higher margins. This move is likely to further narrow the price gap between Apple and its competitors.
Brian Huh, Principal Analyst at Omdia, stated, “Despite Apple’s more aggressive iPhone sales strategy, the global AMOLED display market is expected to decline in 2026 due to weakening demand from Chinese smartphone brands.”
In response to softer demand, Chinese AMOLED panel makers may adopt more aggressive pricing strategies to maintain production levels. The industry is watching closely as these market dynamics unfold in the coming months.
Omdia forecasts that the flexible AMOLED display market will be particularly affected as competition intensifies. Manufacturers are seeking to maintain their market presence amid declining shipments.
