TAIPEI (Taiwan News) – The sale of smartphones is likely to stall or even decline this year but phones with AI features will become more common, retailer Senao International Co., Ltd. said Friday.

The phone distributor estimated the number of handsets likely to be sold in Taiwan this year would be close to the 5.3 million recorded for 2025, per CNA. There is also a likelihood of a modest decline, the company said during its online investor conference Friday.

However, AI features will become more prevalent and trickle down from high-value flagship phones to lower-end models, according to Senao. Because the success of AI was followed by shortages and surges in memory cost, smartphone manufacturers raised prices for their mid-range models 10% to 20%.

The launch of the next generation of the Apple iPhone in September would play an important role, Senao said. If the US smartphone brand kept its prices stable, it might help promote a new wave of phone purchases, according to the distributor.