Overview
- Market researcher IDC reports a 22% year‑over‑year fall in smartphone shipments in the September quarter, the steepest quarterly drop on record.
- IDC says memory costs have jumped about 350% year over year because AI data centers have soaked up DRAM and NAND supply, sharply raising component bills for phone makers.
- Manufacturers have responded by increasing retail prices, cutting specs on new models, and eliminating lower‑end devices to protect margins.
- Apple and Samsung are best positioned to benefit from a premium‑weighted market, while volume‑focused Chinese brands such as Xiaomi and OPPO have taken the largest hits.
- Analysts warn the shock could reshape the market by concentrating share among premium vendors, pushing consumers toward pricier or refurbished phones, and delaying a broad recovery until 2028 or later.