Chip Crunch: Smartphone Shipments Struggle Amid Rising Costs

Global smartphone shipments are projected to decrease by 2.1% next year. Rising chip costs severely impact the market, with low-end segments being most affected. Giants like Apple and Samsung are in a better position to navigate these challenges, as chip demands surge due to AI developments.

Global smartphone shipments are anticipated to drop by 2.1% next year, primarily due to escalating chip costs, according to technology-focused market research firm Counterpoint.

The industry has been grappling with a shortage of memory chips, as manufacturers shift toward semiconductors tailored for AI applications.

Apple and Samsung remain well-positioned to endure the upcoming challenges, while the rising demand for AI servers is expected to pressure memory chip supplies further, as indicated by Counterpoint and IDC reports.