Global smartphone shipments contracted by 11% in the second quarter, falling to their lowest level for the period since 2013.
The sharp decline underscores the severity of the ongoing memory chip shortage, which has driven up component costs and forced manufacturers to raise handset prices, ultimately suppressing consumer demand.
The data highlights a widening disconnect between the semiconductor industry's supply constraints and the consumer electronics market.
While demand for memory chips remains robust in the data-center and artificial intelligence infrastructure sectors, the resulting scarcity is spilling over into the consumer space.
Manufacturers are facing elevated costs that they are passing on to end-users, leading to a notable softening in volume.
This development aligns with recent warnings from major retailers.