Roll up the phone: the smartphone lineup has started to shrink
The range of smartphones in Russian stores may decrease this year. So, Xiaomi has already stopped producing gaming smartphones, and Realme is reducing the number of gadget modifications. The release of devices will also be reduced by Oppo and Vivo. The reason is the increase in prices for components on the world market. In the current situation, the used device market will grow significantly, experts say. How the market is being transformed and what changes can be expected is in the Izvestia article.
How much will the range of smartphones decrease
The reduction in smartphone production by the world's leading brands, which became known this summer, may lead to a reduction in the range of devices in Russia and on the global market, industry participants told Izvestia. Now we are talking about optimizing the product range. In the second half of 2026, companies are likely to update inexpensive product lines less frequently and keep previous—generation devices on sale for longer, said a representative of one of the electronics sales companies. First of all, this will affect models with small production volumes and low profitability. According to him, the choice of new devices may decrease the most in the budget segment.
Suppliers and manufacturers are also reviewing plans to avoid excess inventory. Marvel Distribution told Izvestia that the volume of supplies for the Russian market has already been significantly reduced. In some categories, this will lead to a reduction in the available selection of models.
— Each new model will be evaluated in terms of potential profit, since in addition to the decline in demand, the increase in the cost of components is seriously affecting. In such conditions, it is pointless to spray, so they will optimize what does not sell very well or sells worse than the most popular models. We are not talking about flagships, but about the best—selling models in physical terms," said Artur Makhlayuk, senior business analyst at the company.
The reduction in the production of gaming smartphones of the Black Shark line by Xiaomi was previously reported by foreign industry media. The decline in production was also noted by Chinese publications, in particular the South China Morning Post. Nikkei Asia wrote about Oppo and Vivo's plans to reduce the release of devices.
— The reduction in production volumes and the reduction in the model range also applies to other brands. For example, Realme, its P4 Lite smartphone, was originally available in three versions. But only two are being released now. Other manufacturers are starting to reduce the model range now," said Eldar Murtazin, a leading expert at Mobile Research Group.
Izvestia sent inquiries to Xiaomi, Oppo, Vivo and Realme.
In Russia, the reduction in the range is already noticeable: instead of dozens of similar models, manufacturers are leaving several key product lines covering the main price categories, confirmed Anastasia Bezrukova, a leading expert at the Center for Strategic Support of Domestic Technologies. The number of new products in the mass segment may be 20-30% lower compared to pre-crisis periods, and this trend will continue, she believes.
— The ultra-budget and the lower middle segment are being squeezed the most, where rising costs and logistics make some models economically meaningless. The premium remains, but it is updated less frequently, as flagships usually live longer on the market," she says.
According to her, consumers will face a narrower choice, primarily in the most affordable price categories. Entry-level devices are at risk, where the range of devices and batch volumes are being reduced. In the middle and upper price ranges, it's more about narrowing the range of brands and configurations, rather than the physical absence of goods, says Anastasia Bezrukova.
In the context of a global reduction in supply, the resale market remains an alternative for buyers, according to Avito Goods. Resale allows you to purchase a smartphone of the right model in good condition and save an average of 30-40% compared to buying a new device, they said. This is especially true for those who were counting on budget novelties: in the secondary market, you can find previous generations of the same models with almost no loss in functionality, Avito noted.
Why is the model range being reduced?
Market participants explain the reduction in smartphone production by the rising cost of components and their shortage in the global market. There are not enough of them due to the boom of artificial intelligence around the world - vendors are repurposing production facilities for the production of components needed by AI services. There is a large shortage of memory in the global market right now — there is not enough for the production of new devices, RWB noted. According to the company, the cost of smartphone production has already increased by at least 30%.
"Given the trend towards increasing the average life of the device, it can be assumed that the range of offers may decrease by 10-20%, especially in the segment of budget models," RWB did not rule out.
According to Eldar Murtazin, over the past year, RAM for a phone has increased in price by an average of 2-2.5 times, depending on the type, drives — by half, displays — by about 70%, processors — by 10%. It is primarily low-cost models that are being cut, and it is often unprofitable to spend expensive components on them, the expert explained.
"The cost of memory, displays, processors has increased so much that it simply makes no sense to release new smartphones, because there are still old ones on the shelves," he added.
Xiaomi, Oppo, Vivo, as well as a number of brands focused on the budget segment, are reviewing supply plans for the 2026 horizon, reducing target volumes specifically in the segment of low-cost devices, Anastasia Bezrukova noted. They are shifting the focus to more marginal models. Some manufacturers are not so much reducing production as moving away from mass devices, where the rising cost of chips and displays is already eating up all profits, she said.
Industry forecasts suggest a drop in global smartphone shipments by about 10-12% by the end of the year, and by more than 20% in the segment of devices cheaper than $400, said a source close to one of the smartphone sellers. He did not rule out a local shortage of individual models and configurations, primarily smartphones of the entry price range and popular versions with a large amount of RAM and internal memory.
"In the middle and premium segments, the risks of shortages are lower, since manufacturers can partially transfer additional costs to the retail price, for example, as Apple has already stated," the source added.
At the same time, not all players predict a shortage of smartphones in Russia. There are still sufficient stocks on the market, formed against the background of demand delayed due to attractive deposit rates and a decrease in consumer activity during 2025 and early 2026, said Nikita Tolpygin, head of the Telecom and Gadgets department at M.Video. At the same time, all the brands officially represented in our country continue to steadily supply new batches of devices and bring current models to the market, he claims. The only exceptions are companies that do not officially operate in Russia, Nikita Tolpygin concluded.
Thus, market participants expect a reduction in the number of new models, primarily in the budget segment. At the same time, most of them do not predict a large-scale shortage of smartphones in Russia due to the accumulated inventory.
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