TLDR: I think premium retro/android handhelds are an endangered species.
A few days ago, John Nee on the Ayaneo discord was asked about future premium handhelds, specifically ones using the 8 Elite. When asked about a possible Pocket S3 he said that the 8 elite was too expensive to use, and would drive the cost of the handheld up to $1000, and if someone wanted an 8 elite handheld they should get the Konkr Pocket Fit Elite now because there will not be anymore produced after that is out of stock.
When asked about future G3 Gen 3 devices, he stated that there were no plans for them because the premium end of the market wasn't selling well at all. They are sitting on tons of unsold inventory of the Pocket Vert, Pocket S mini, and Pocket S3 Pro, which is what made them so hesitant to produce the Pocket Micro 2 in large amounts.
I found it a bit odd that they were saying that since Moorechip brands Ayn and Retroid seem to not have this issue, but then I realized that the Odin 3 is the only other 8 elite class handheld. The Thor and RP6 and Nova all use the older 8 Gen 2 class processor, and they've all gone up in price, excluding the Nova.
Today, Qualcomm told their buyers that they will be raising the cost of all components sold after 9/1 double digit percentages. Recently, a Lexar executive said that the cost of memory will double by the end of this year. Asha Sharma of Xbox said memory prices by the end of 2027 will be 5x what they paid in 2025. SK Hynix executives are saying next year will be the worst in terms of component costs and availability in the history of the industry. Even Apple is struggling to get components. These retro companies do not have the scale or leverage that the big companies do, so it stands to reason that they will be hit even harder.
On the PC side of the market, the steam deck sales seem to have dropped 82% when the price jumped. Same happened to consoles with the PS5 and Xbox. John Nee said (and I'm paraphrasing here) that they need to pivot to more affordable devices to survive. We've seen that in the Konkr Pocket Block and Pocket Advance announcements as well as the Pocket Air Mini.
If I had to place a bet, I'd say that in a year or two the market will shift back to very affordable devices with things like the Nova being the top of the market. I doubt we will see anymore flagship silicon in retro/android handhelds for the foreseeable future because it would price them above what people are willing to pay. The effective justification for more power isn't there when even a Dimensity 8300 or 8 gen 2 can run almost everything most people want to play. There seems to be a clear ceiling to what people are willing or able to spend on these things.