Stocks across the mobile phone supply chain experienced widespread declines. At the time of writing, BYD ELECTRONIC (00285) fell 4.97% to HK$30.18; FIH (02038) dropped 3.15% to HK$20.9; LENS (06613) declined 2.85% to HK$22.5; and COWELL (01415) decreased 2.19% to HK$25.02.

The pressure follows a research report from Citi, which revised down its global smartphone shipment forecasts for this year and next to 1.04 billion and 1.17 billion units, respectively. This represents a 17% year-on-year decrease for the current year and a 12% increase for the following year. The bank also projected shipments would grow 7% year-on-year to 1.25 billion units by 2028.

These adjustments are based on memory chip shortages and rising prices, coupled with weak demand due to increasing inflation. Citi forecasts average selling price increases of 7%, 2%, and 3% for the respective periods.

The report noted that IDC's fourth-quarter smartphone shipment figures for last year were 5% higher than the bank's expectations, primarily driven by regions including Central and Eastern Europe, the Middle East, Africa, and the Americas. Last year's foldable phone shipments largely met expectations, and the bank remains optimistic about its forecasts of 29 million and 45 million units for this year and next, driven by the anticipated launch of a foldable iPhone.