2026 Taiwan Smartphone Market to See 'Shrinking Volume, Rising Prices'! Samsung Taiwan's Chen Chi-Meng: Full-Year Sales Volume Down 7%, Revenue Up 8%, High-End Models Above $600 to Drive Growth

The Taiwan smartphone market is expected to continue its 'volume contraction' in 2026, while sales revenue grows逆势. Samsung Electronics (KRX: 005930), through its Taiwan subsidiary Samsung Taiwan, held a new product press conference today (29), where Chen Chi-Meng, General Manager of the Mobile Communications Business, stated that due to factors such as extended replacement cycles, the Taiwan smartphone market is projected to see a 7% year-on-year decline in sales volume in 2026, while revenue will grow by 8%. The main growth momentum is concentrated in the high-end segment priced above $600 (approximately NT$19,400), indicating that although consumers are delaying upgrades, demand is increasingly shifting toward premium flagship devices.

Notably, a rough calculation based on Samsung’s forecast of a 7% sales volume decline and 8% revenue increase suggests that the average selling price per smartphone in Taiwan could rise by approximately 16% in 2026, highlighting a structural shift in the smartphone market from past volume-driven growth to one increasingly reliant on premiumization and product mix upgrades.

First-half sales volume down 7%, second-half revenue projected to grow 8%–10%

Chen Chi-Meng noted that in the first half of 2026, the overall Taiwan smartphone market saw a 7% decline in sales volume compared to the same period last year, while revenue still grew by 3% to 5%, indicating that high-end products are currently supporting the market, rather than a broad-based recovery in replacement demand.

Looking ahead to the second half, he forecasts that Taiwan smartphone sales volume may decline 6% to 8% year-on-year, while revenue could grow 8% to 10%. For the full year, sales volume is estimated to fall 7%, with revenue growing 8%. Compared to the first half, the revenue growth rate in the second half is expected to further expand, as Apple, Samsung, and other brands roll out new flagship models, and the expansion of high-priced foldable smartphone lineups may further boost overall market revenue.

The shift in Taiwan’s smartphone market does not mean consumers are unwilling to buy high-end products, but rather that after extending their replacement cycles, they are more inclined to purchase higher-spec, longer-lasting flagship devices. This trend is also reflected in Samsung’s own sales structure.

S26 series sees double-digit growth, Ultra model accounts for nearly 70%

Chen revealed that the Galaxy S26 flagship series has performed better than its predecessor since launch, showing double-digit growth overall, with the Galaxy S26 Ultra being the most popular model, accounting for nearly 70% of sales among the three S26 models.

The dominance of the top-tier Ultra model shows that high pricing has not fully suppressed demand. For some consumers, purchasing a high-spec device with superior camera, processor, battery, and AI capabilities once, rather than frequently upgrading, is becoming an alternative purchasing strategy.

This premiumization trend extends to foldable smartphones. Samsung launched three foldable flagships this year—Galaxy Z Fold8 Ultra, Galaxy Z Fold8, and Galaxy Z Flip8—aiming to expand the potential customer base for foldable devices through different positioning in business productivity, immersive entertainment, and social content creation.

Chen pointed out that the previous-generation Galaxy Z Fold7 and Z Flip7 saw a 15% increase in sales volume and nearly 40% growth in revenue compared to their predecessors. For this year’s Z8 series, Samsung aims for a 20% increase in sales volume and a 45% increase in revenue. The revenue target significantly exceeds the volume target, indicating that with the addition of the Ultra model, Samsung’s foldable product lineup is shifting further toward higher price points.

Foldable smartphone share to rise from 6% to 15%

Previously, the Galaxy Z series accounted for about 6% of Samsung’s total smartphone sales in Taiwan. Samsung now aims to gradually increase the foldable share to 15% through product line expansion and diverse marketing strategies.

Chen stated that Samsung hopes to “continue expanding foldable product penetration, targeting sales growth of over 20% compared to the previous generation.” However, based on current Fold user sources, about 70% are existing Galaxy Z series users, 20% are upgrading from Galaxy S series, and users from competing brands account for only about 10%, indicating that the current foldable user base remains highly concentrated among Samsung’s existing customers.

This means that for Samsung to increase foldable smartphones’ share of total sales from 6% to 15%, it cannot rely solely on existing Fold users upgrading; it must also increase the conversion rate of Galaxy S series users and persuade users from other brands to switch to foldables.

Installment purchases rise to 40%, price pressure remains despite premium demand

However, growth in high-end smartphone sales does not mean consumers are insensitive to price. Chen revealed that the proportion of consumers choosing installment purchases has risen from 15%–18% to about 40%. Since Samsung Taiwan launched its cardless installment service Samsung Finance+ last year, the number of users opting for installment plans via this service has grown 5 to 10 times.

Installment plans, credit card zero-interest offers, telecom subsidies, and trade-in programs are becoming crucial pillars for sustaining high-end smartphone growth. Especially as foldable flagships start at nearly NT$40,000 and top models exceed NT$80,000, converting a one-time expense into affordable monthly payments has become part of the competition between brands and retailers.

Beyond the latest flagships, previous-generation high-end models are also beginning to absorb price-sensitive demand. Chen noted that Samsung Taiwan’s N-1 previous-generation sales strategy has performed at 1.3 times last year’s level, with the Galaxy S25 series becoming a popular search item on Samsung’s official online store.

This indicates that while the Taiwan smartphone market is moving toward 'shrinking volume, rising prices,' consumers are not blindly chasing the newest and most expensive products. Some choose top-spec flagships and extend their usage period, while others turn to discounted previous-generation flagships. Whether a brand can capture both types of demand will be key to maintaining revenue growth amid declining sales volume.