Omdia says ongoing component cost inflation is increasing financial pressure on
smartphone makers, prompting cuts to entry-level SKUs and a portfolio shift
toward higher‑margin mid‑ and high‑end models. To meet rising performance
expectations and support higher retail prices, high‑end and flagship phones are
raising storage configurations while entry‑level models are being downgraded.
Omdia senior research manager Jusy Hong said this product differentiation will
further deepen storage‑configuration polarization in the smartphone market this
year.
