The smartphone supply chain saw a broad decline in Hong Kong stocks. At the time of writing, Q TECH (01478) fell 7.12% to HKD 9.91, COWELL (01415) dropped 4.8% to HKD 27.36, FIT HON TENG (06088) declined 4.64% to HKD 4.93, and BYD ELECTRONIC (00285) slid 3.24% to HKD 32.9.

The downturn follows reports that multiple smartphone manufacturers have postponed memory chip procurement for the current quarter. Companies like OPPO and vivo reportedly hold inventories below two months, with some facing DRAM stockpiles under three weeks. These brands are hesitant to accept suppliers' price hikes nearing 50%.

According to TrendForce, the memory market has entered a strong upward cycle, driving up device production costs and likely forcing higher retail prices—potentially dampening consumer demand. The research firm has revised its 2026 global shipment forecasts for smartphones and laptops downward, now projecting a 2% and 2.4% year-on-year decline, respectively, compared to prior estimates of 0.1% and 1.7% growth.

Further downgrades may occur if memory supply-demand imbalances worsen or if end-product price increases exceed expectations.