The sharp declines are especially damaging for the entry-level and mid-range segments, which are far more price-sensitive than the premium smartphone market. <\/p>\n
“Memory costs are up nearly 300% from a year ago, and now account for over 65% of [bill of materials] at the low end, making survival increasingly difficult for OEMs with low-end portfolios,”\u202fIDC senior research director for Worldwide Consumer Devices,\u202fNabila Popal,\u202fwrote in a research note. <\/p>\n
“Q2 confirms exactly what we predicted: this is not a uniform downturn; memory crisis is favoring premium players and punishing vendors exposed to the low end.” <\/p>\n
Research firm Omdia pointed to a less drastic drop in shipments, but like Counterpoint Research and IDC, said the memory shortage has created “severe market polarization.” <\/p>\n
All three research groups said that Apple (AAPL<\/a>) and Samsung (005930.KS<\/a>) shipments increased in Q2, while Chinese firms like Xiaomi, Oppo, and Vivo bore the brunt of the downturn. <\/p>\n Despite near-term growth, however, some analysts see potential headwinds for premium brands, especially Apple. <\/p>\n On Monday, KeyBanc Capital Markets’ Brandon Nispel released an investor note downgrading Apple stock to Underweight on concerns that potential price increases on future iPhones, coupled with a reduction in wireless carrier promotions and subsidies, could force consumers to hold on to their existing devices longer. <\/p>\n That, he writes, could ultimately lead to slowing growth in Apple’s Services segment. <\/p>\n “We see Apple’s Services revenue growing 13.5% in FY27\u2026 but slowing to 7% in FY27,” he wrote. <\/p>\n Estimates indicate the memory crisis could last into next year or further, with some experts saying it could take until 2030 for the AI-induced bottleneck to clear. <\/p>\n Email Daniel Howley at dhowley@yahoofinance.com. Follow him on X at @DanielHowley<\/a>. <\/p>\n Click here for the latest technology news that will impact the stock market<\/strong><\/a>.<\/strong> <\/p>\n Read the latest financial and business news from Yahoo Finance<\/strong><\/a> <\/p>\n <\/a> Sign up for Yahoo Finance’s Week in Tech newsletter. \u00b7 Yahoo Finance <\/p>\n