Kyu3a
The reduction in shipments is attributed to a lack of memory chips and unprecedented prices.
"Costs for memory chips have risen almost 300% compared to the previous year, now representing over 65% of production expenses in the low-end market, which is making it harder for manufacturers with low-end offerings to survive," stated Nabila Popal, Senior Research Director at IDC. "The memory crisis benefits high-end players and harms providers in the budget segment."
For the second straight quarter, Apple Inc. and Samsung have shown strength, being the only two among the top five suppliers to record sales increases, she remarked. Apple reported unprecedented results in the second quarter due to the popularity of the iPhone 17 and worries over upcoming price increases.
"This crisis has split the smartphone market into two segments," remarks Francisco Jeronimo, vice president of global client devices at IDC. "Samsung and Apple are leading the way."
They are distancing themselves from other firms, partly due to selling devices for which memory chips represent a lesser portion of the cost. The expert believes that at the bottom, manufacturers concentrating on inexpensive, mass-produced devices are struggling, along with their clients.
source: idc.com
"Costs for memory chips have risen almost 300% compared to the previous year, now representing over 65% of production expenses in the low-end market, which is making it harder for manufacturers with low-end offerings to survive," stated Nabila Popal, Senior Research Director at IDC. "The memory crisis benefits high-end players and harms providers in the budget segment."
For the second straight quarter, Apple Inc. and Samsung have shown strength, being the only two among the top five suppliers to record sales increases, she remarked. Apple reported unprecedented results in the second quarter due to the popularity of the iPhone 17 and worries over upcoming price increases.
"This crisis has split the smartphone market into two segments," remarks Francisco Jeronimo, vice president of global client devices at IDC. "Samsung and Apple are leading the way."
They are distancing themselves from other firms, partly due to selling devices for which memory chips represent a lesser portion of the cost. The expert believes that at the bottom, manufacturers concentrating on inexpensive, mass-produced devices are struggling, along with their clients.
source: idc.com