Worldwide smartphone shipments fell 22% year over year in the third quarter of 2026 to 255.3 million units, according to preliminary data in a report released by technology research firm IDC, which attributed the decline to rising memory chip costs that have squeezed vendor margins and pushed handset prices higher. The results matched an earlier estimate from Loop Capital analyst John Donovan, who also reported a 22% decline for the quarter and warned of further deterioration in the market [1].
IDC reported that memory costs have surged approximately 350% since last year and remain elevated, creating pressure on vendor margins and shipment volumes. The data center industry’s demand for high-bandwidth memory has diverted manufacturing capacity away from consumer electronics, a dynamic reported earlier in 2026 as a critical shortage with implications for product roadmaps and component pricing [2]. The report’s release came as analysts and market observers assessed the broader technology supply chain, where memory inflation has slowed to a low double-digit sequential increase in the third quarter, compared with growth of roughly 50% to 100% in prior quarters, IDC stated [1].
Read Full Article: https://www.naturalnews.com/2026-10-18-q3-smartphone-shipments-drop-amid-rising-memory-costs.html
