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.

(With inputs from agencies.)