Consumers Reluctant to Buy New Phones, Sales Struggle and Traders' Plight Worsens
Jakarta, CNBC Indonesia - As supply chain crises, including for AI memory, continue to hit globally, the smartphone market remains sluggish. Global market growth experienced an 8% year-on-year (YoY) decline in the 20th week of 2026.
A report from Counterpoint Research stated that this global market decline marks negative growth for the ninth consecutive week amid persistently weak consumer demand.
Simultaneously, the performance gap between brands is widening. The cause is differences in supply chain stability and the ability to execute pricing strategies, which are becoming more apparent.
Amid this uncertain situation, only Apple and Huawei are showing positive trends. Apple recorded a 10% increase compared to last year, and Huawei surged by 23%.
‘Brands with stable supply chains and high visibility on key components like memory are able to maintain more consistent pricing and promotional strategies. Apple is in an advantageous position in this regard,’ said Sujeong Lim, Associate Director at Counterpoint Research, as quoted from the company’s official website on Wednesday (24/6/2026).
‘Huawei is demonstrating the strength of the Chinese market, supported by domestic policies and a localised supply chain structure,’ he added.
The Counterpoint report also noted that Xiaomi, Oppo, and Vivo are vulnerable to component supply fluctuations and increased cost pressures. This ultimately reduces their flexibility in pricing and promotional strategies, leading to sluggish sales during the period.
Meanwhile, Research Director Tarun Pathak explained that manufacturers will take a cautious approach during this period. They will adjust their strategies as memory prices remain high until the end of 2026.
‘To overcome this pressure, they are implementing a combination of price increases, product launch adjustments, and aggressive cost optimisation tactics, including devices that economise on certain features and efficient channel management,’ he explained.