On October 15, data released by market research firm IDC showed that smartphone shipments in the third quarter experienced a sharp 22% decline. This downturn, primarily attributed to escalating memory chip costs, represents the most severe quarterly slump ever recorded, and the outlook suggests further deterioration. IDC explained that over the past year, the AI industry's burgeoning order demand has propelled memory chip costs upward, significantly undermining profitability within the smartphone sector. Consequently, manufacturers have been compelled to hike prices, downgrade specifications, and phase out budget-friendly models.

Nabila Popal, research director at IDC, emphasized that the market has yet to reach its nadir. Memory chip costs have soared by roughly 350% since last year and continue to climb, placing enormous strain on manufacturers' profit margins and shipment volumes. The situation indicates that the worst may still lie ahead.