Transsion (688036.SS): Foldable phone with Edge AI functions in 2H26; High memory costs to continue to weigh on consumption; Sell

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Transsion (688036.SS): Foldable phone with Edge AI functions in 2H26; High memory costs to continue to weigh on consumption; Sell

Equity Research

22 June 2026 | 8:29AM HKT

Transsion (688036.SS): Foldable phone with Edge AI functions in 2H26;

High memory costs to continue to weigh on consumption; Sell

We remain cautious on the overall smartphone market amid rising memory costs: Verena Jeng

+852-2978-1681 | verena.jeng@gs.com

1Q26 mobile DRAM pricing rose 58-63% QoQ, and Transsion’s smartphone Goldman Sachs (Asia) L.L.C.

shipment remained low at 21m units (-10% QoQ), per IDC. GS expectations are for Allen Chang

mobile DRAM price to increase by 74-77% QoQ in 2Q26 (report link), which could +852-2978-2930allen.k.chang@gs.com|

continue to weigh on overall smartphone market consumption, in our view. Under Goldman Sachs (Asia) L.L.C.

Yifan Huthe challenging environment, we see leading smartphone brands with higher +852-2978-0996 | yifan.hu@gs.com

exposure to premium models continuing to outperform given end-users are Goldman Sachs (Asia) L.L.C.

generally less price sensitive: Apple / Samsung / Huawei smartphone shipments

increased by 3% / 2% / 6% YoY in 1Q26 vs. global smartphone market declined by

-3% YoY. Despite a challenging year, we continue to expect Transsion’s smartphone

shipments to trough in 2026E, with shipments in 2027E returning back to 2025

levels, and to over 100m by 2028E on the back of gradually normalizing memory

costs, rising AI smartphone trend, and Transsion’s strong price-to-performance

models. Read more: Global Smartphone TAM update.

Exhibit 1: Transsion smartphone shipment and ASP trend

120 m units US$ 160

60 80

- -

2023 2024 2025 2026E 2027E 2028E

TECNO itel Infinix ASP (RHS)

Source: Company data, Goldman Sachs Global Investment Research