Memory crisis shakes the phone market

Global smartphone shipments have dropped to their lowest level in 14 years. Over the same period, device prices rose 20 percent. At the center of the story is a supply crunch in memory (RAM and storage chips).

Why prices are climbing

The memory crisis is pushing up costs for phone makers. Higher costs feed directly into sticker prices, so consumers pay more for the same specs. Those higher prices in turn cool demand and shipments fall.

Who is affected

Both manufacturers and consumers are under pressure. Makers are grappling with falling shipments, while buyers delay new phones because of rising prices. According to the source, the crisis is still ongoing.

In short

  • Shipments: lowest in 14 years
  • Prices: up 20 percent
  • Cause: memory supply crunch
  • Result: pressure on makers and buyers