Smartphone shipments plummet as memory crisis pumps up prices

Smartphone shipments fell by at least a fifth in the third calendar quarter as the AI-driven memory crunch battered another consumer hardware market. Preliminary estimates from IDC and Omdia put the year-on-year decline at 22 percent and 20 percent respectively. Memory costs have surged by approximately 350 percent since last year, according to IDC, and are still rising. This continues to place substantial pressure on vendor margins, prompting them to hike price tags and scale back on devices at the value end of the market. IDC estimates that vendors shipped 255.3 million smartphones into distribution channels and warns that the downturn is far from over. "The sharp downturn the industry has been bracing for finally materialized in the third quarter this year. However, the worst is yet to come," said Nabila Popal, IDC's senior research director for worldwide devices. "Current indicators suggest that the market has not yet reached the bottom. …