Home / Business and Economy / Smartphone Shipments Plummet to 2013 Lows Amid Shortage
Smartphone Shipments Plummet to 2013 Lows Amid Shortage
14 Jul
Summary
- Global smartphone shipments fell 11% last quarter, hitting 2013 lows.
- Memory chip shortage caused price hikes and reduced consumer demand.
- Apple and Samsung shipments grew while mid-tier brands struggled.
Global smartphone shipments have plummeted by 11% in the past three months, marking the lowest figures observed since 2013. This downturn is attributed to a severe memory chip shortage, which has escalated prices and consequently reduced consumer purchasing power.
The supply chain challenges have disproportionately affected entry-level and mid-tier manufacturers, including Xiaomi, Vivo, and Oppo. As a result, these companies have recorded double-digit percentage declines in shipments. Consumers are delaying upgrades or opting for older models due to the increased cost.
In contrast, Apple and Samsung have demonstrated resilience. Apple achieved a record 20% market share with a 3% increase in shipments for its premium iPhones. Samsung reclaimed the top position with a 24% market share, seeing a 4% rise in shipments. This divergence is partly due to premium phones often being bundled with carrier contracts, which mitigate upfront costs.
Looking ahead, global smartphone shipments are projected to decline by approximately 14% for the full year. The memory shortage is expected to persist until 2027, prompting budget manufacturers to focus on refurbished and previous-generation devices. This situation is also impacting other consumer electronics like PCs, with shipments falling by 4.9% in the third quarter.
