Global Smartphone Shipments Plunge Record 22% as Memory Costs Surge 350%
AAPL sits 42% above its 52-week low of $243.42.
Summary
IDC reports global smartphone shipments fell a record 22% Y/Y to 255.3M units in the September quarter, driven by an AI-related memory shortage that has pushed component costs up roughly 350% over the past year. Apple proved relatively resilient, with shipments down only 4% to 57.3M units and market share rising to 22.4%, second only to Samsung's 22.6%. The downturn is expected to persist through 2027, with recovery possibly delayed until 2028, and IDC warns the worst is yet to come. This follows Apple's July Q3 report where management already flagged worsening component shortages and a soft Q4 guide. The data confirms the memory cost pressure is intensifying industry-wide, but Apple's premium positioning and supply chain strength are limiting its exposure relative to Chinese rivals like Xiaomi, Oppo, and Vivo, which saw shipments drop 29-35%.
At the time of this announcement, AAPL was trading at $344.80 on NASDAQ in the Technology sector, with a market capitalization of approximately $5T. The 52-week trading range was $243.42 to $348.15. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.