The global smartphone market will decline by 2.1% next year, affected by the rising costs of memory.

According to Counterpoint estimates, the global smartphone market will register a decline of 2.1% next year, significantly influenced by the rising costs of memory. DRAM memory prices have already increased by 25% for low-end segment phones, 15% for mid-range ones, and 10% for flagships. Analysts estimate an additional increase of 10-15% in these costs by the second quarter of next year. This situation will lead to an increase in the average selling price of smartphones by 6.9%. A major factor in the rising memory prices is the increased demand from artificial intelligence solution developers, who are purchasing memory for data centers. Memory manufacturers have already warned of potential stock issues in 2024. Manufacturers with a diverse range of models, such as Apple and Samsung, will have an advantage in this situation.