Memory chip price surge squeezes TV and smartphone markets

Rising memory‑chip costs are reshaping the consumer‑electronics landscape. Analysts note that despite higher component prices, TV manufacturers have kept retail prices steady by shifting profit models toward advertising revenue on smart‑TV platforms. Sales of TVs rose 6% in Q1 2026, aided by events such as the FIFA World Cup, while retailers like Walmart have acquired brands such as Vizio to leverage aggregated viewing data for targeted ads. The trend is spreading from the United States to Europe, with new operating systems such as Vidaa, Titan OS and TiVo OS gaining market share.

At the same time, the global smartphone market has contracted to its lowest quarterly output in 13 years. Counterpoint Research reports an 11% drop in shipments in Q2 compared with the same period a year earlier, driven by the same memory‑chip price surge that raises production costs and prompts consumers to extend device lifespans. Apple and Samsung remain strong in the premium segment, but brands like Xiaomi, Oppo and Vivo saw notable declines. Analysts warn that continued component‑price pressure could further hinder market recovery.