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Finnish company HMD Global has launched a new HMD Fuse smartphone aimed specifically at children. According to the company, it is the world's first smartphone that prevents children from filming, broadcasting or viewing nude and sexually explicit content, even while streaming.
More Phone Makers Could Be Leaving Europe This Year
02. 02. 2026 Monday / By: Robert Denes / Business / Exact time: BST / Print this page
The price of memory chips has started to rise dramatically, and it’s now having a very tangible impact on the smartphone market, especially in Europe. According to a recent analysis by Counterpoint Research, phone makers’ bills of materials (BOM) have increased by up to 30 percent since the first quarter of 2025, and there’s no sign of relief. Costs are expected to rise another 15 percent over the next two quarters.
The price hike will hit phones under $250 the hardest, a price range where competition in Europe is fierce, profit margins are low, and consumers are particularly price-sensitive. In practice, this will affect the vast majority of Android phones in Europe, especially manufacturers that rely on more affordable models.
The situation is not so dire for all manufacturers. Higher-end brands like Apple and Google are better protected from cost pressures. Even players with a wide range of products, such as Samsung, are able to balance between different price ranges. These companies have more options to react, reduce the scope, subtly weaken the technical features of new devices, choose the market more carefully, or simply wait for the situation to calm down.
However, for manufacturers that focus on more affordable phones, the options are significantly limited. Jan Stryjak, deputy director of Counterpoint Research, highlights brands such as Realme, HMD and Transsion Group, whose business is closely tied to low prices.
According to him, smaller manufacturers such as Sony and TCL are also struggling in Europe. For these operators, simply waiting is not necessarily a realistic option, as any cost increase will directly eat into already thin price levels.
According to Stryjak, these manufacturers now need to position themselves to remain relevant while the market recovers. Otherwise, you could be facing a much more drastic solution. He estimates that it wouldn’t be surprising if the European smartphone market was one or two fewer manufacturers after the crisis than it is now.
The situation is getting even grimmer, as Counterpoint Research predicts that global smartphone shipments will fall by around six percent in 2026 compared to the previous year. A more significant market recovery is not expected before the first half of 2027.
Until then, the industry will have to balance cost, performance and innovation, which will inevitably be visible to consumers, whether in the form of higher prices, more modest technical features or narrower devices.
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