Global Smartphone Sales Suffer Record 22% Third-Quarter Drop
IDC linked the sharp fall to rising memory costs and expects the market to begin recovering no earlier than 2028.
Key takeaways
- Global smartphone sales fell 22% year over year to 255.3 million in the third quarter.
- IDC's Nabila Popal said memory costs have risen about 350% since last year.
- IDC expects a market recovery no earlier than 2028.
Global smartphone sales fell 22% year over year to 255.3 million in the third quarter, the steepest annual drop in any quarter on record, according to preliminary IDC figures.
IDC linked the decline to higher memory and storage costs, driven by strong demand from the artificial intelligence sector. Research Director Nabila Popal said memory costs had risen about 350% since last year and were still increasing.
Higher costs are squeezing manufacturers’ profits and shipments. Companies have raised prices, cut device specifications and moved away from lower-priced models, while consumers are keeping their current phones longer, IDC executive Francisco Jeronimo said.
Apple and Samsung increased their market shares, while sales declines accelerated for Xiaomi, OPPO and vivo, according to IDC. The report said the two larger brands were less exposed to cost pressure because of their premium product ranges.
IDC expects growth to remain very limited through 2027, with a recovery beginning no earlier than 2028. The research firm said companies able to adapt products, prices and marketing to persistently higher costs may gain market share.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
