Apple and Samsung benefit as memory shortage pushes smartphone shipments to historic lows

# Smartphone Sales Hit a Wall — And Your Next Phone Might Cost More Smartphone sales dropped 11 percent this quarter, the worst in over a decade, because computer chip makers are prioritizing AI technology over consumer devices, driving up the cost of memory chips. Budget phones under $500 are getting hit hardest, with memory costs now eating up half their manufacturing price, forcing companies to either raise prices or cut profits. Meanwhile, Apple and Samsung are weathering the storm better because their expensive phones can absorb higher component costs and still sell.