Global smartphone shipments in second quarter hit lowest in 13 years on memory chip crunch
Counterpoint Research said suppliers are prioritizing AI data centers, pushing memory costs higher and forcing phone makers to raise prices.
- Global smartphone shipments fell 11% in the second quarter to their lowest level for the period since 2013, according to Counterpoint Research data released July 13 as memory chip shortages dampened demand.
- Suppliers prioritizing AI data center demand over consumer electronics created a persistent memory chip shortage, forcing manufacturers to pass higher component costs onto consumers through price hikes on budget and mid-range devices.
- Samsung reclaimed the top spot with a 24% market share, while Apple bucked the broader downward trend with a 3% shipment rise and record 20% global share for the quarter.
- Xiaomi, Oppo, and Vivo posted the steepest shipment declines among top-five manufacturers, reflecting their greater exposure to entry- and mid-range devices where rising memory costs hit demand hardest.
- Counterpoint expects global smartphone shipments to decline about 14% this year, with the memory chip shortage likely to persist into 2027 and continue pressuring the market.
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Smartphone shipments hit a 13-year low due to memory supply shortages; memory prioritized for AI data centers. As demand for memory for artificial intelligence (AI) data centers surges, the supply shortage of smartphone memory is becoming prolonged, and with rising component costs driving up smartphone prices, global smartphones in the second quarter of this year...
Samsung overtakes Apple as smartphone market sinks to a 13-year low
Credit: Robert Triggs / Android Authority TL;DR Global smartphone shipments fell 11% YoY as AI-driven demand for DRAM and NAND chips fueled component shortages, higher production costs, and widespread price hikes. Samsung reclaimed the top spot with a 24% global market share, outperforming Apple despite the smartphone market posting its weakest Q2 since 2013. Xiaomi, OPPO, and vivo took the biggest hit, posting double-digit shipment declines as…
Global smartphone shipments in second quarter hit lowest in 13 years on memory chip crunch
July 13 (Reuters) - Global smartphone shipments fell 11% in the second quarter to their lowest level for the period since 2013, as a prolonged memory chip shortage drove up handset prices and dampened demand, according to early estimates from Counter...
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