Smartphone shipments plummeted 22% last quarter—the worst decline on record
IDC analysts believe that, due to rising prices for memory chips, the market is not expected to recover before 2028
IDC warns that the smartphone market will not recover before 2028 / Photo: 8th.creator / Shutterstock.com
Global smartphone shipments in the third quarter plummeted 22% year-over-year to 255.3 million units, according to research firm IDC. This marks the sharpest quarterly decline in the industry's history.
The crisis is caused by rising prices for memory chips due to demand from the AI industry, according to Bloomberg. Rising component costs are eroding smartphone manufacturers’ profitability and forcing them to raise prices, scale back device specifications, and discontinue budget models. According to Nabila Popal, senior research director at IDC, the cost of memory chips has risen by 350% since last year and continues to climb. “The worst is yet to come,” she warns.
Among the largest manufacturers, Chinese brands were hit the hardest: Xiaomi’s shipments fell by 29.2%, OPPO’s by 34.5%, and vivo’s by 31.5%. Apple and Samsung proved to be more resilient thanks to their wide selection of high-end models, according to IDC. Their shipments declined by 4% and 5.8%, respectively, but their global market shares increased.
IDC predicts that the market will not return to growth until at least 2028. Rising smartphone prices are forcing consumers to keep their current devices longer, explains Francisco Geronimo, vice president of the research firm. Manufacturers themselves pose an additional risk: some have decided to release more smartphones, anticipating that it will become more difficult to source components next year. If demand remains weak, this could lead to a buildup of inventory by 2027 and worsen the market outlook, IDC warns.
Earlier this week, IDC reported that smartphone shipments in China have been declining for the sixth consecutive quarter: from July through September, they fell 15.4% year-over-year to 57.9 million units. Huawei was the only major manufacturer to post double-digit growth in shipments. According to analysts, the company benefited from a broad product lineup and a relatively moderate price increase.
This article was AI-translated and verified by a human editor
