Smartphone Shipments Crash to 13-Year Low Due to RAMageddon

Global smartphone shipments just got kneecapped, falling by 11% over the past three months to the lowest levels since 2013. The memory-chip shortage is to blame for pushing up prices and squeezing demand, according to Counterpoint Research. 

The slowdown is a direct consequence of a supply-chain stalemate. As more chipmakers feed the demand for artificial intelligence, phone-makers are hiking prices and making consumers foot the bill. 

The report says the shortage has had the greatest impact on memory-sensitive entry and midtier handset manufacturers such as Xiaomi, Vivo and Oppo. As consumers put off new smartphone purchases or traded down to prior-generation devices rather than upgrading, original equipment manufacturers, or OEMs, recorded double-digit percentage shipment declines year over year “due to increased market volatility stemming from rising memory costs.” 

Meanwhile, the two leading phone manufacturers, Apple and Samsung, stood out by doing the opposite of the market. Apple hit a record 20% share on strong demand for premium iPhones, with shipments up by 3%. Samsung saw shipments increase by 4%, reclaiming the top spot with a 24% share. 

Aside from brand loyalty, one likely reason premium phones are holding up better is that they are often bundled with carrier contracts, which soften the upfront cost for buyers. 

Counterpoint says it expects global smartphone shipments to decline by around 14% for the full year, and that the global memory shortage is likely to continue into 2027. It suggested that budget manufacturers would “trim low margin models” and lean “further into refurbished and previous-generation devices to retain budget-conscious buyers.”

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Watch this: The RAM Shortage Could Mean Higher Prices for PC Gamers This Year

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As the smartphone market is squeezed by AI on one side and price-sensitive consumers on the other, RAMageddon is affecting consumer electronics across the board, including laptops and gaming consoles. Last week, the market intelligence and advisory firm IDC said PC shipments fell by 4.9% to 68.2 million units in the third quarter.

While some companies initially absorbed increased costs, Apple’s Tim Cook announced last month that Apple was passing the costs on to consumers, with some MacBooks increasing in price by $200.