Smartphone shipments hit their lowest point since 2013 as memory shortages push prices up and sales down. Analysts blame soaring DRAM and NAND chip costs for the dip, which has left budget devices with higher manufacturing expenses.

The top five smartphone makers—Samsung, Apple, Oppo, Vivo, and Xiaomi—are all feeling the pinch; only Apple managed a 3% growth due to stable pricing, though that might not last.

For consumers, this means fewer choices in the budget segment as prices balloon. Higher-end devices are affected too, with memory now making up over a quarter of their cost.

As manufacturers struggle, the AI computing boom continues unabated, leaving less room for consumer tech. Budget buyers might find themselves priced out of new phone purchases entirely.