Core Viewpoint - The smartphone market is expected to face dual pressures of tight memory supply and soaring prices starting in the second half of 2025, leading to increased end-product prices and weakened demand [2][3]. Group 1: Market Dynamics - Despite a conservative outlook from various smartphone brands regarding market prospects, many are prioritizing resource locking in memory procurement to avoid higher costs and severe supply constraints [3]. - Some brands are experiencing rising finished goods inventory due to factors such as the diminishing effects of subsidy policies in the Chinese market and the impact of new product price adjustments on sales [3]. - The first half of 2026 will be a critical period for brands to adjust production output and product structure, utilizing strategies like specification adjustments and redefined pricing to mitigate earlier price pressures [3]. Group 2: Production Forecast - TrendForce has revised down its forecast for smartphone production in 2026, increasing the year-over-year decline from 2% to 7% compared to the previous forecast released in November 2025 [4]. - Future adjustments to the forecast will depend on the trends in memory prices and the extent of price adjustments by brands, as well as the market's acceptance of these price increases [4].