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Smartphone Shipments Plunge 22% Amid Surging Memory Costs and AI Boom
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CNBC TV18•15-10-2026, 10:10
Smartphone Shipments Plunge 22% Amid Surging Memory Costs and AI Boom
- •The smartphone market suffered its worst decline on record in the September quarter, with shipments dropping 22% due to surging memory costs.
- •Soaring storage prices driven by AI industry demand have squeezed mobile sector profitability, forcing companies to hike prices and scrap budget models.
- •Chinese brands like Xiaomi Corp. and Oppo experienced the heaviest impact, whereas Apple Inc. and Samsung Electronics Co. demonstrated more resilience.
- •IDC projects a permanent structural shift in the industry, delaying any meaningful market recovery until at least 2028.
- •Memory costs have skyrocketed roughly 350% over the past year and continue to rise, leaving vendors facing severe pressure on margins.
Key Questions Answered
Global smartphone shipments fell 22% during the September quarter because soaring memory costs, driven by high demand from artificial intelligence industry orders, forced companies to raise prices, cut back specifications, and discard budget-focused models.
Market researchers at IDC do not expect a recovery in smartphone shipment growth until 2028 at the earliest, as device manufacturers recognize they are facing a permanent structural shift.
Chinese brands like Xiaomi Corp. and Oppo took the worst hit among top manufacturers, whereas Apple and Samsung fared better due to their larger portfolios of premium handsets.
