Memory shortage now a ‘full-blown demand issue’ for the smartphone market, says Counterpoint analyst.
The memory crunch has dragged down global smartphone shipments to the lowest second-quarter levels in 13 years.
Manufacturers producing cheaper gadgets saw their shares take the steepest drop after passing price hikes over to consumers. Analysts expect further price increases and a harsher squeeze for memory components.
“The global memory crisis has now overtaken every other factor as the single biggest drag on the smartphone industry. What started as a components issue last year is now a full-blown demand issue,” said Counterpoint senior analyst Shilpi Jain.
According to Counterpoint research, smartphone shipments tumbled 11pc year-on-year this quarter globally, as memory suppliers prioritise DRAM and NAND for AI data centre needs over consumer electronics.
