Shares in the mobile phone supply chain continued to fall during the session. At the time of writing, COWELL (01415) dropped 4.82% to HK$24.08, Q TECH (01478) declined 4.7% to HK$7.7, and BYD ELECTRONIC (00285) decreased 3.25% to HK$30,096. The downward movement follows reports that domestic mobile phone shipments have recorded double-digit declines for two consecutive months. Data shows that from January to February 2026, mobile phone shipments in the domestic market totaled 39.655 million units, down 15.5% year-on-year. Notably, soaring memory prices and rising smartphone costs have led industry observers to forecast a significant drop in full-year 2026 smartphone shipments, potentially reaching the lowest level in over a decade. A recent Morgan Stanley research report indicated that smartphone OEMs are likely to raise average selling prices and pass on most component cost increases. Such price hikes could substantially dampen demand for Android smartphones, as end users remain highly price-sensitive. The institution has revised down its 2026 global smartphone shipment forecast by 15% to 1.1 billion units. Within this context, Apple's supply chain is expected to outperform its Android counterparts.