tech
Apple and Samsung benefit as memory shortage pushes smartphone shipments to historic lows
The biggest smartphone makers keep on trucking in the face of component shortages and economic uncertainty.
TL;DR
- Smartphone shipments decreased by 11% last quarter, hitting the lowest second-quarter level since 2013.
- The primary cause is the increasing price of DRAM and NAND chips, with manufacturers diverting components to support the AI computing boom.
- Higher memory costs disproportionately affect budget phones (under $500), where memory can now constitute half the manufacturing cost.
- Apple and Samsung have maintained or increased shipments, while Oppo, Vivo, and Xiaomi have seen decreases.
- Google's Pixel phone shipments are growing, with a 16% year-over-year increase in Q2.
- Component shortages are expected to continue into next year, likely leading to further price increases and a shift towards longer smartphone lifespans.