IT Home, October 15 — According to Bloomberg, market research firm IDC reported that the global smartphone market experienced its most severe quarterly decline on record in the third quarter of this year due to rising memory prices, with shipments plunging 22% year-over-year, and the situation is expected to worsen further.
IDC stated that over the past year, demand from the artificial intelligence industry has driven up prices for memory chips, squeezing profit margins across the entire smartphone industry and forcing manufacturers to raise prices, reduce hardware specifications, or even discontinue entry-level models. Chinese top brands such as Xiaomi and OPPO have been hit hardest, while Apple and Samsung Electronics have performed relatively better due to their broader portfolios of premium devices.
IT Home has noted that device manufacturers are increasingly aware that the industry is undergoing a permanent structural shift. IDC predicts that market growth is unlikely to recover until at least 2028. As manufacturers continue to raise prices and steer consumers toward flagship or premium-tier models, the long-term trend will be a shrinking overall market, with companies like Apple—boasting extensive distribution channels and a strong portfolio of high-end products—gaining an even larger market share.
Nabila Popal, Research Director at IDC, said: "Current indicators show that the market has not yet reached its bottom. Memory prices have surged by approximately 350% since last year and continue to rise, placing significant pressure on manufacturers' profits and shipment volumes. The toughest phase is still ahead."