Apple CEO Tim Cook's record of success: Some numerical highlights

Apple CEO Tim Cook's record of success: Some numerical highlights



By Vlad Savov

 


Fifteen years after succeeding Steve Jobs, Tim Cook is handing over the top leadership position at Apple Inc. to hardware specialist John Ternus. The outgoing chief executive officer, who’ll stay on as executive chairman, built up an unprecedented record of success over his tenure. Here are some of the numerical highlights.


$3.66 Trillion

 


Cupertino, California-based Apple was already a hugely influential company back in 2011, but with Cook as CEO the company grew its market capitalization tenfold. Valued at just under $350 billion on Aug. 24, 2011 — when Cook took over — it was the first to set several new highs for market valuation and currently sits at $4.01 trillion. Apple’s market value is today roughly equivalent to the size of Britain’s economy, the world’s fifth largest. Remarkably, that lofty number isn’t enough to make Apple the most valuable business, as Silicon Valley peers Alphabet Inc. and Nvidia Corp. have pulled ahead in the AI age.

 


699%


The fiscal year ending September 2025 brought in $112 billion in net income for Apple, eight times what the company achieved in September 2010. That 699% profit improvement has come despite a plateauing of smartphone sales, the Covid crisis, supply chain snarls and geopolitical tensions between the US and Apple’s main manufacturing base, China.

 


Cook expanded the budding iPhone and App Store ecosystem with a succession of complementary devices, from iPads at various sizes to Apple Watches at multiple price points and an expansive range of Made for iPhone accessories. Under his leadership, Apple never returned to the nomenclature of starting new product names with “i”, but he did everything to maximize the earning potential of that portfolio.

 


“When Tim Cook came over, there was a ton of doubt,” said Gerber Kawasaki Wealth and Investment Management co-founder and CEO Ross Gerber. But “he’s done a phenomenal job over the years.”


2.5 Billion Devices


Apple in January reported it has an installed base of more than 2.5 billion active devices. The company sold its billionth iPhone in the summer of 2016, when Cook held up the boxed handset at a staff meeting. “We never set out to make the most, but we’ve always set out to make the best products that make a difference,” the CEO said at the time.

 


The most recent holiday period was a record across several company metrics: revenue, iPhone sales and income from services. While Cook hasn’t broken much new ground with entirely novel products — the Apple car project was scrapped and the Vision Pro remains a niche — he’s built up a cohesive ecosystem that keeps people coming back for more.


540 Stores

Cook inherited one of the world’s most-respected retail operations, and built it up. He’s added roughly 200 stores to Apple’s global network and, importantly, expanded its mainland China presence dramatically. Apple now has 50 stores across locations like Chongqing, Guangdong, Hubei and Yunnan, reaching vastly more consumers in the world’s biggest market for smartphones and PCs. Apple’s success in China stands out among US Big Tech peers, with many like Google and Meta Platforms Inc. largely shut out from the consumer arena. 


$1,070 Average Price


In 2017, Apple and Samsung Electronics Co. made the fateful decision to test the $1,000 boundary for smartphone pricing. The two global leaders both introduced devices that for the first time nudged up against and, with upgrades, pushed beyond that threshold. Each year since then has produced pricier options and additions — with Apple’s expansion into Pro and Max variations of the iPhone leveling up the average selling price each year.

 


After the original iPhone was famously lampooned by then-Microsoft-CEO Steve Ballmer for being too expensive at $500 with subsidies, modern-day editions of the smartphone habitually cost twice as much. In 2011, Apple’s average selling price for iPhones was $712, but by 2025 that figure stood at $1,070, according to market research firm IDC.

 


Cook oversaw the move up into higher pricing strata, which this year helped Apple withstand the memory chip crunch better than Chinese rivals more dependent on budget devices.


15,000 Metric Tons 


Cook has championed several environmental efforts at Apple, including greater use of recycled metals and cutting down on greenhouse gas emissions and excess packaging. Apple avoided the use of 15,000 tons of plastic over the past five years — the rough equivalent of 500 million plastic bottles — by redesigning its packaging, according to its environmental report this month.

 


This year’s new MacBook Neo ranks as Apple’s lowest-carbon MacBook ever, according to the company, with 60% of its materials coming from recycling. It still has significant work ahead to achieve its ambition of carbon neutrality across its value chain by 2030.


175 Acres


Apple Park, the expansive and futuristic headquarters that Jobs first envisioned years earlier, came to fruition under Cook’s leadership in 2017. The 175-acre campus — large enough to accommodate 100 American football fields with room to spare — houses more than 12,000 staff, 17 megawatts of rooftop solar energy generation and two miles of parkland paths for employees. It also has an orchard, meadow and a pond, according to Apple, which now habitually features its home base as the setting for new product launch videos.

 


As of the end of September, Apple had 166,000 global employees, with millions more employed in the production and supply chain for its products.


$600 Billion


A major part of Cook’s legacy will be a $600 billion US spending commitment he made last year. Apple’s biggest investment plan ever, the outlay will go toward supporting 20,000 new jobs, data center expansion, Apple Intelligence infrastructure and production of servers in Houston, the company said. The announcement was part of Cook’s work with the Donald Trump administration to avert punishing tariffs on iPhone imports to the US. As his successor, Ternus will have to live up to Cook’s promises while also striking a fine balance between Apple’s interests at home and those in key overseas markets like China.



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Are phones designed to age faster? The EU wants to challenge this model

Are phones designed to age faster? The EU wants to challenge this model



There’s a familiar cycle most smartphones go through. A device that once felt fast and reliable starts to slip, battery life shortens, performance feels uneven, and charging becomes a constant habit rather than an occasional one. Nothing is completely broken, but everything feels just inconvenient enough to push you toward an upgrade. 


Over time, that experience has come to feel inevitable, almost natural. However, lawmakers in the European Union believe this cycle may not be as natural as it seems. 


By forcing changes to how devices are designed, particularly around batteries and repairability, the EU is attempting to interrupt a pattern that has quietly shaped how long we keep our devices, and how easily we give them up.


The logic of planned obsolescence


Planned obsolescence is often described as designing products to fail over time. In practice, it works more subtly. Devices are rarely built to stop functioning outright; instead, they are built in ways that gradually make them less practical to keep using. 


Friction builds over time. Batteries lose capacity, software support slows or ends, and repairs become either expensive or difficult to access. Eventually, replacement begins to feel less like a choice and more like the sensible option. 


The battery sits at the centre of this dynamic. It is the one component guaranteed to degrade with use. According to EU assessments, smartphones are typically replaced every two to three years, with battery performance, repair costs, and software limitations all contributing to that decision. 


Data from the EU’s Joint Research Centre shows that aesthetic obsolescence accounts for nearly half of all upgrades, with technical issues such as performance and battery degradation following closely behind. In many cases, the device still works, but no longer feels worth keeping. 


That tension has played out publicly before. In 2017, Apple confirmed it was slowing down certain iPhones with ageing batteries to prevent unexpected shutdowns. While the company said this was to protect components, it also highlighted how deeply battery health shapes the overall device experience. 


The backlash led Apple to introduce battery health indicators within iOS, a feature that has since become standard across devices. While this offers more visibility, the underlying issue remains unchanged: as batteries degrade, the experience declines, often nudging users toward replacement.


Why removable batteries disappeared


Until the early 2010s, replacing a phone battery was straightforward. Today, it often requires specialised tools, careful disassembly, and, in many cases, professional intervention. 


Manufacturers moved to sealed designs for valid reasons — thinner devices, improved waterproofing, and streamlined manufacturing. But these choices also reshaped how devices can be maintained.


  A sealed phone is not just harder to open; it is harder to repair independently, harder to sustain over time, and more dependent on manufacturer-controlled service channels. Limited spare parts, high repair costs, and restricted access to software updates all contribute to shorter device lifespans. 


That control extends beyond hardware. Apple, for instance, requires post-repair calibration through its Repair Assistant after replacing key components. Without this step, users may see warnings, lose features, or receive inaccurate battery health readings. 


While Apple says this improves security and prevents misuse, it also raises the barrier for independent repairs, making them more complex and often more expensive. 


The impact of sealed designs is visible in real-world cases. Google Pixel users, for instance, have reported battery swelling and overheating issues in the past. In some cases, software updates were used to limit charging and performance, with replacements offered instead. In devices with easily replaceable batteries, such issues could potentially be resolved more directly.


The economics behind sealed devices


Modern smartphones operate within a lifecycle that favours replacement over repair. Shorter upgrade cycles sustain demand for new devices, while tightly managed repair ecosystems allow manufacturers to retain control over servicing, parts, and software. 


Repair extends the life of existing hardware without generating the same level of revenue as a new sale. As a result, while repair is often technically possible, it is rarely positioned as the easiest or most affordable option.


What the EU is trying to disrupt


The EU’s intervention is rooted in a broader concern: devices are being replaced earlier than necessary, leading to wasted resources and higher environmental costs. 


Rather than addressing this only at disposal, the EU is targeting design itself. Through its Ecodesign framework, it is setting expectations for durability, repairability, and long-term support. 


Devices are expected to be more durable, batteries must retain capacity over extended use, and manufacturers must make spare parts available for years. Software support is also part of this shift, ensuring devices remain usable for longer. 


Independent repairers are meant to have fair access to tools and information, addressing one of the key barriers to repair today.


The industry is already adapting


Even before these rules fully take effect, some shifts are visible. 


Apple has introduced design changes that make batteries easier to remove in newer devices, while its latest MacBooks are being seen as more repair-friendly. Independent repair platform iFixit’s scores also suggest gradual improvements across brands. 


Apple’s iPhones have improved from repairability scores of around 6 to 7 in recent generations. Google’s Pixel devices have seen smaller gains, while Samsung’s flagship devices have improved from much lower scores in earlier models. 


The trend, however, is uneven. Foldable devices remain difficult to repair due to their complexity, while a few models, such as HMD’s Nokia devices, have demonstrated that highly repairable designs are possible. 


At the same time, greater repairability often exists alongside tighter control mechanisms, such as part pairing and restricted repair processes. Devices may be easier to open, but not necessarily easier to repair freely.


Will this change how devices are used?


There are clear potential benefits. Devices that last longer and are easier to repair could reduce long-term costs and lower environmental impact.


But the transition may not be seamless.

 


Designing for repairability can introduce trade-offs, from slightly thicker devices to new engineering constraints around safety and durability. There is also the question of cost, whether manufacturers absorb these changes or pass them on. 


And even if devices become easier to repair, accessibility will remain key. A repairable device is only meaningful if repair is affordable and widely available.


What this could mean for markets like India


While the EU’s rules apply within its own market, their impact is unlikely to stay contained. Global manufacturers rarely design region-specific hardware at scale, which means changes driven by European regulation often ripple outward.


  India has begun exploring similar ideas, including a Right to Repair framework and a proposed repairability index. While still evolving, these efforts signal a broader shift in thinking, where repairability is becoming a policy concern rather than just a technical detail.


The real issue: fixing control, not just batteries


At its core, this debate is not really about batteries. It is about control — specifically, who decides how long a device lasts. 


For years, that control has largely rested with manufacturers. Through sealed designs, limited repair access, and software support tied to their own timelines, they have shaped when a device stops being practical to use. 


The EU’s rules challenge that model. By forcing companies to design for repairability, longer support, and easier access to parts, the regulation pushes back against a system where replacement has been the default outcome. 


And that is the real shift. 


Because the question is no longer just whether a battery can be replaced — it is whether manufacturers still get to decide when a device is effectively done.



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EU Battery Regulation: This EU rule may let you replace your phone battery yourself from 2027

EU Battery Regulation: This EU rule may let you replace your phone battery yourself from 2027



Most of the phones and tablets that we have today come with sealed designs, with batteries glued into place and difficult to remove or replace. That could begin to change from 2027. 


Under the European Union’s battery regulation, phones, tablets and cordless mobile phones will need to be designed so that batteries can be removed and replaced without damaging the device or the battery itself. The rule is set to kick in from February 18, 2027, and could mark a shift away from tightly sealed hardware that has dominated device design for more than a decade.


EU battery regulation: What has been mandated


The regulation introduces clear requirements for how batteries must be designed within devices. 

 


At its core, batteries must be both removable and replaceable. This means users should be able to take them out safely without damaging the device, and swap them with another unit without affecting performance or safety. 

For end users, this process must be possible using commercially available tools—or no tools at all. Manufacturers cannot rely on proprietary or specialised tools unless these are provided free of charge with the product. In practical terms, this means users should be able to replace batteries themselves without having to depend on authorised service centres.  READ: Products launched during Tim Cook’s reign that shaped Apple’s evolution 


The rules define an “end user” as an adult without specialised technical training, indicating that the process is meant to be accessible even to non-expert users. However, it may not be as simple as the removable battery systems seen in older feature phones. 


For certain categories, such as batteries used in light means of transport (LMT), replacement may be carried out by independent professionals. In such cases, manufacturers must ensure that any required tools are available at a reasonable and non-discriminatory price.


Which devices will be affected


As per official documents, the key affected devices include mobile phones, cordless phones and slate tablets. The focus is on products where batteries are currently glued or sealed in place, making removal difficult.


More than just a repair rule


While the most visible change is around repairability, the regulation extends beyond that. It includes provisions related to the safe handling and disposal of batteries, and aims to ensure that removed batteries are directed to proper collection and treatment systems. 


The broader objective is to reduce waste and improve how batteries are managed across their lifecycle.


When will the rules take effect


The EU battery regulation entered into force in August 2023 and will be implemented in phases. The requirements on removability and replaceability will apply from February 18, 2027.


Why this could affect India


Although the regulation applies within the European Union, its impact is unlikely to remain limited to the region. Manufacturers typically avoid creating separate hardware designs for different markets due to cost and supply chain complexity. As a result, devices designed to meet EU requirements are often rolled out globally. 


A similar shift was seen with USB-C charging ports. After the EU mandated the standard, companies began adopting it across markets, with similar rules later introduced in India. 


If this pattern continues, consumers in markets such as India could also see devices that are easier to repair.


Takeaway


The EU’s upcoming battery rule is not just a regulatory change, but a potential reset in how devices are designed and maintained. For consumers, it could mean devices that are easier to repair, more durable, and longer-lasting.



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Apple bets new CEO John Ternus will bring back Jobs-era decisiveness

Apple bets new CEO John Ternus will bring back Jobs-era decisiveness



By Mark Gurman

 


When Apple Inc. announced Monday that longtime leader Tim Cook would be replaced by John Ternus, it published an image of the two executives walking side by side at the company’s campus in Cupertino, California. 

 


But Ternus will have a challenge when he officially takes the job in September. Even as he maintains Apple’s device empire — and its more than $400 billion in annual revenue — the executive will need to take chances, enter new product categories and find the company’s footing in artificial intelligence.

 
 


None of that will be easy, and the ability to “think different” will determine whether Apple can keep thriving in the AI era.

 

“He must resist the temptation of incrementalism that has plagued Apple of late,” Forrester Research Inc. analyst Dipanjan Chatterjee said in a note. “As Ternus assumes the helm, he must define Apple’s future as ferociously as he defends its past.” 

  
Moving Faster
 


 
To succeed, Ternus will need to keep what works — operational discipline and calm leadership — while breaking from the consensus-driven decision-making that has defined Cook’s tenure. He will also need to move faster, sharpen Apple’s competitiveness in AI and deliver new hardware hits.

 

Cook did oversee the launch of groundbreaking products, including the Apple Watch, AirPods and Vision Pro headset, but the track record is mixed. The watch and earbuds became enormous successes, though both emerged while key members of his predecessor’s leadership and engineering teams were still at the company. 


The Vision Pro — long envisioned by Cook as a capstone product — has flopped, despite a decade of development and billions in investment. Apple also spent roughly $10 billion on an autonomous-car project that was ultimately scrapped. In both cases, Ternus’ instincts appear to have been more cautious; he opposed the initiatives to varying degrees. 

 


Where Ternus has excelled is execution. He has ensured that Apple consistently delivers updated versions of the iPhone, iPad, Mac and Apple Watch each year, while improving hardware quality, durability and performance — hallmarks of his stint as hardware chief.

 


Ternus, 50, also was a champion of the MacBook Neo, a product that broke with Apple’s typical premium-minded approach. He urged the company to sell a cheaper laptop that could appeal to a younger generation, and his instincts were rewarded. The colorful $599 machine — unveiled last month — won rave reviews and quickly sold out. 

 


This was the beginning of Ternus putting his stamp on the company, but he’ll now have to lead Apple into additional new categories. The tech giant is currently focused on two main areas of expansion: AI-powered smart home products and wearable devices.

 


The home push includes a smart display with facial recognition, a tabletop robot with a swiveling display for videoconferencing and media playback, and a privacy-focused security camera. The wearables effort spans smart glasses, a pendant device and new AirPods, all with computer-vision cameras for scanning a wearer’s surroundings.


Slow Headway 


So far, progress has been uneven. Apple had hoped to introduce smart glasses as early as this year, but the product remains months away from readiness, potentially pushing a debut into 2027. Its home devices have also been delayed as Apple struggles to get its AI models and next-generation Siri voice assistant up to par. The tabletop robot, once targeted for 2027, is now at risk of slipping into 2028.

 

Fixing Apple’s AI execution is critical. Delays are no longer just technical — they’re starting to affect the company’s ability to ship hardware that drives upgrades and revenue.  


Apple picked Ternus, in part, because of his age and belief that he could reinvent Apple’s product lineup and compete against AI-savvy competitors. He is likely to keep a sharper focus on products and rely on deputies like Chief Operating Officer Sabih Khan to help him run the business.


Decision-Making Style 


Apple also is betting that Ternus has a more decisive leadership style — something closer to that of co-founder Steve Jobs. Longtime colleagues describe Ternus as someone willing to make clear calls, in contrast to Cook’s more deliberative, consensus-oriented approach.

 


“Ternus will make decisions” when it comes to product development, said one person who has worked closely with both executives. “If you go to Tim with ‘A’ or ‘B,’ he won’t pick. He’ll ask a series of questions instead if he has concerns.”

 


Ternus, on the other hand, will choose, said the person, who asked not to be identified in order to speak candidly. “It could be right or wrong, but at least it’s a decision.”

 


That shift could mark the end of an era in which major product decisions were made collectively by a small group of top executives. Ternus is expected to take a more centralized approach where he will be a singular decision-maker. 

 


Cook, meanwhile, will stay on as executive chairman, focusing on government relations and geopolitics — including Apple’s ties to China and its relationship with US President Donald Trump. Colleagues say that while Ternus can be a smooth talker, he’s not yet ready to take the mantle from Cook as the person dealing with policymakers globally. 

 


The September transition positions Ternus to begin his tenure with momentum. He will oversee the launch of Apple’s first foldable iPhone — one of the most significant changes to the product in its history — alongside a much-needed fresh start for Siri. 

 


Earlier this month, Ternus overhauled the hardware engineering organization around what he calls a new AI platform designed to speed up product development and improve device quality. It’s indicative of his plan to deploy AI quickly throughout the company to improve its operations.

 


The executive has told staffers that he will remain closely involved with hardware engineering efforts, aiming to shepherd the next generation of technologies. 

 


That is the crux of the job ahead. Apple no longer needs another operator. It’s seeking a leader who can define what comes next. 



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Who is John Ternus, the 25-year veteran at Apple set to be next CEO

Who is John Ternus, the 25-year veteran at Apple set to be next CEO



In a surprise move on late Monday, Apple Inc CEO Tim Cook announced that he would step down from the position in September and named John Ternus the next CEO. Cook will transition to executive chairman of Apple’s board of directors later this year.

 


Currently, the vice president of Hardware Engineering, Ternus, will take over as CEO from September 1 this year. “I am profoundly grateful for this opportunity to carry Apple’s mission forward,” Ternus said in a company press release.

 


This will be the first leadership appointment at Apple in 15 years since Tim Cook took over the CEO role from co-founder Steve Jobs in 2011. Just a month ago, Cook had refuted speculation of stepping down and said in an interview, “I love what I do deeply.”

 
 


Who is John Ternus?

 


Apple on Monday said that Ternus’s transition was ‘a thoughtful, long-term succession planning process’. Ternus has been central to Apple’s hardware engineering growth, having assumed the role of vice president of Hardware Engineering in 2013. In 2021, he joined the executive team as senior vice president of Hardware Engineering. Ternus has spent 25 years at Apple, first joining the company’s product design team in 2001. Prior to joining Apple, Ternus worked as a mechanical engineer with Virtual Research Inc. He holds a bachelor’s degree in Mechanical Engineering from the University of Pennsylvania.

 


He has been instrumental in the introduction of multiple new product lines at Apple, including iPad and AirPods, as well as many generations of products across iPhone, Mac, and Apple Watch.

 


Cook, in the company’s press release, described Ternus as a visionary who “has the mind of an engineer, the soul of an innovator, and the heart to lead with integrity and with honor… he is without question the right person to lead Apple into the future.”

 


Ternus helped Mac become “more powerful and more popular globally than at any time in its 40-year history,” including the recent introduction of MacBook Neo, making the category more accessible to people worldwide.

 


According to Bloomberg, Ternus reorganised the hardware engineering division this month to operate with a new AI platform. He is also leading the charge on a trio of new AI-focused wearables and new home devices, Bloomberg added.

 


Ternus’s transition to the CEO role comes at a time of intense pressure to catch up in AI, an area where Apple is seen as lagging. It will be under his watch that Apple will likely launch products in new categories like a foldable iPhone, a smart home hub and smart glasses powered by an upgraded Siri.

 



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India's smartphone market hits six-year low as memory costs surge: Report

India's smartphone market hits six-year low as memory costs surge: Report



India’s smartphone market contracted in the first quarter of calendar year 2026, as rising component costs, particularly memory, and weakening demand began to impact shipments and pricing across segments. According to Counterpoint, shipments declined 3 per cent year-on-year in Q1 CY2026, marking the weakest quarter for the market in the past six years.

 


The slowdown comes despite increased launch activity, with brands advancing nearly one-third of their model launches to the quarter in an attempt to offset rising bill of materials (BOM) costs driven by memory prices and currency fluctuations.


Dip in the Indian smartphone market


India’s smartphone shipments declined 3 per cent year-on-year in Q1 CY2026, marking their weakest quarter in the last six years, according to Counterpoint Research’s Monthly India Smartphone Tracker. This comes on the back of a mixed performance over the previous two quarters.

 
 


In the last quarter of CY2025, India’s smartphone shipments declined 4 per cent on year-on-year basis. Counterpoint research stated that this was mainly due to a seasonal post-festive demand slowdown, which was further aggravated by price hikes linked to rising memory costs.

 


In contrast, the market had grown 5 per cent year-on-year by volume and 18 per cent year-on-year by value in Q3 CY2025, marking its highest-ever quarterly value, likely driven by strong festive demand and sustained traction in the premium segment.

 


Despite the Q1 CY2026 decline, brand-level performance remained active.

 


Vivo (excluding iQOO) led the market with a 21 per cent share. Samsung secured the second position, likely driven by demand for its A-series models and traction for the Galaxy S26 series.

 


OPPO retained the third position with a 14 per cent share and recorded 8 per cent year-on-year growth, making it the fastest-growing brand among the top five. Xiaomi (including POCO) ranked fourth, with strong performance in the Rs 10,000–Rs 20,000 segment.

 


Realme also saw strong traction in the Rs 10,000–Rs 20,000 segment, particularly in online channels, ranking among the top two brands in that category.

 


Apple’s shipment share reached 9 per cent in Q1 2026, supported by sustained demand for the iPhone 17 series and financing offers such as long-term EMIs and exchange deals.


Among other brands, Nothing (including CMF) emerged as the fastest-growing overall, growing 47 per cent year-on-year, while Google recorded 39 per cent growth in the premium segment (above Rs 45,000).


Possible reasons for the dip


The decline in shipments is driven by rising costs and weakening consumer demand, with memory inflation emerging as the central issue.

 


“The market is facing a clear affordability squeeze, driven by sharp memory-led cost inflation and currency pressures that have forced OEMs to raise prices across key models,” said Counterpoint Senior Analyst Prachir Singh.

 


He added that “with average hikes exceeding Rs 1,500, the sub-Rs 15,000 segment has been hit the hardest, given its high price sensitivity.”

 


Beyond component costs, macroeconomic factors are also playing a role. Singh noted that “rising energy costs amid ongoing geopolitical tensions in the Middle East are further straining household budgets, pushing consumers to prioritise essentials over discretionary purchases like smartphones.”

 


This combination of higher prices and reduced spending power is extending upgrade cycles, particularly in the mass segment, delaying recovery.


Why is there a memory shortage?


At the centre of these cost pressures is a prolonged global shortage of memory chips, particularly DRAM and NAND, which are critical components in smartphones.

 


According to a Nikkei Asia report, supply constraints are expected to persist as major manufacturers such as Samsung Electronics, SK Hynix and Micron struggle to scale production fast enough. These three companies together account for around 90 per cent of the global DRAM market.

 


The report noted that “a shortage of memory chips appears likely to continue until around 2027,” with production increases expected to meet only about 60 per cent of demand.

 


One of the key reasons is a shift in industry priorities. Memory manufacturers are increasingly focusing on high-bandwidth memory (HBM), which is used in AI infrastructure and offers higher margins. This has diverted capacity away from general-purpose memory used in smartphones and PCs.


While Samsung is preparing to bring additional fabrication capacity online at its Pyeongtaek facility, full-scale mass production is not expected until 2027 or later. Similarly, SK Hynix has begun ramping up production at new facilities, while Micron is planning expansions in the US and Asia — but most of these will only contribute meaningfully from 2027 onwards.

 


Even where new fabs are being built, scaling production takes time due to yield challenges and technical complexity. As a result, supply remains constrained in the near term.

 


This imbalance has led to sharp price increases. Memory prices for early 2026 are estimated to be “up roughly 90 per cent on the quarter,” with memory now accounting for up to 20 per cent of the cost of low-end smartphones — a figure that could rise to nearly 40 per cent by mid-2026.


When can the market recover?


The outlook suggests that the pressure on smartphone shipments is likely to continue in the near term.

 


“India’s smartphone market is expected to remain under pressure in the near term, with Q2 2026 likely to see a double-digit decline,” said Counterpoint Research Director Tarun Pathak.

 


For the full year, the market is projected to decline by around 10 per cent year-on-year, as sustained component cost inflation — particularly in memory, which has already increased fourfold over the past three quarters — continues to impact affordability.

 


A broader recovery will depend on easing memory supply constraints. However, industry estimates suggest that supply-demand balance may not normalise until 2028, as new production capacity comes online gradually and AI-driven demand continues to absorb a significant portion of output.

 


Until then, brands are expected to focus on premium segments, tighter portfolio strategies and channel efficiency, while the mass market continues to see slower and uneven recovery.



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