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worldwide Smartphone Shipments have just been disrupted, falling 11% over the past three months to their lowest levels since 2013. A shortage of memory chips is to blame for higher prices and pressure on demand, according to Counterpoint Research.
This slowdown is a direct result of supply chain stagnation. As more chipmakers fuel demand for AI, phone makers are raising prices and making consumers foot the bill.
The report says that the shortage had the greatest impact on mid-range smartphone manufacturers such as Xiaomi, Vivo, and Oppo. As consumers postpone purchasing new smartphones or replace them with previous-generation devices instead of upgrading, OEMs recorded a double-digit percentage decline in shipments year-on-year “due to increased market volatility caused by higher memory costs.”
At the same time, the two leading phone manufacturers, Apple and Samsung, emerged by doing the opposite of what the market was doing. Apple achieved a record 20% share due to strong premium demand iPhoneWith shipments rising by 3%, Samsung saw an increase in shipments of 4%, regaining first place with a share of 24%.
Aside from brand loyalty, one possible reason why premium phones hold up better is that they are often bundled with carrier contracts, cushioning the upfront cost for buyers.
Counterpoint says it expects global smartphone shipments to decline by about 14% for the full year, and the global memory shortage is likely to continue into 2027. It suggested that budget manufacturers will “cut back on lower-margin models” and move more toward previous-generation and refurbished devices to retain budget-conscious buyers.
Watch this: A shortage of RAM could mean higher prices for PC gamers this year
Given the pressures of artificial intelligence on the smartphone market on the one hand and price-sensitive consumers on the other hand, Ramageddon It affects consumer electronics across the board, including laptops and gaming consoles. last week, Market intelligence and consulting firm IDC PC shipments fell 4.9% to 68.2 million units in the third quarter, it said.
While some companies initially absorbed the increased costs, Apple’s Tim Cook made the announcement last month Apple was passing the costs on to consumersWith some MacBooks increasing their prices by $200.
