PETALING JAYA: MBSB Research is maintaining its “neutral” stance on the technology sector as the smartphone industry is anticipated to experience a challenging 2026.
It noted that, among others, the memory crunch brought about by the artificial intelligence (AI) boom has led to supply concerns for the industry.
Global memory producers such as SK Hynix, Samsung Electronics and Micron Technology are shifting their production away from the consumer market, according to the research house.
Notably, Micron Technology planned to stop selling memory for the consumers business to focus on meeting demand for high-powered AI chips.
The low-end smartphone segment is expected to be impacted the most.
The escalating cost of the memory component could lead to higher smartphone prices, the research house added.
However, it said the flagship phone model segment could be more resilient.
Apple, for instance, could leverage on its strong supply chain and high margin products to minimise issue. Samsung, may rely on its own internal memory output via Samsung Electronics.
However, on the local front, the research house said local outsourced semiconductor assembly and test companies have varied presence in the smartphone industry.
“Notably, Inari Amertron Bhd has the largest exposure to the smartphone and mobile devices market where 64% of the revenue is derived from.
“This is followed by Unisem (M) Bhd whereby the communications segment made up 30% of the total revenue and Malaysian Pacific Industries Bhd at 13%.”