Mizuho Securities has flagged that rising memory chip prices are putting pressure on the global smartphone market, yet Samsung Electronics is positioned to fare better than most competitors in this environment. At the same time, the company's semiconductor business continues to reap the benefits of the same supply constraints.

The Japanese brokerage forecasts global smartphone shipments of 1.15 billion units in 2026, a year-on-year decline of 9%, while Samsung's shipments are expected to remain roughly flat at 240 million units. Mizuho notes that Samsung and Apple hold a comparative advantage in securing memory chip supply, and both boast a product mix more heavily weighted toward flagship devices.

This gives the two companies more room to absorb higher costs or pass them on to consumers through price adjustments. According to Counterpoint Research data from July, global smartphone shipments dropped 11% year-on-year in the second quarter, driven by a worsening shortage of DRAM and NAND flash memory. However, Samsung's market share climbed to 24% from 20% in the same period last year.

Benefiting from higher chip prices and robust demand for AI servers, Samsung Electronics' Device Solutions division—which encompasses its memory business—posted an operating profit of 89.2 trillion Korean won (approximately $66.4 billion) in the second quarter. In contrast, the company's Mobile Experience and Networks business recorded an operating loss of 700 billion Korean won during the same period.

Samsung has acknowledged rising component costs across the industry and plans to focus its second-half smartphone sales efforts on flagship models such as the Galaxy Z8 and S26 series, aiming to increase the share of high-end devices in its lineup. The anticipated launch of Apple's foldable phone is also expected to generate additional business for Samsung Display, a subsidiary of the tech giant.

However, Mizuho has slashed its production estimate for Apple's first foldable device this year to 4.1 million units from 5.8 million, citing unresolved issues related to the hinge mechanism. Even with a slower production ramp-up, the brokerage expects Samsung Display to ship 8 to 8.5 million foldable panels in 2026.