Smartphone Shipments Post Worst Third Quarter in 14 Years as Memory Costs Bite

Global smartphone shipments recorded their weakest third-quarter performance in 14 years, according to Investing.com, with the shortfall attributed to a memory chip shortage that has pushed up component costs for device makers. The shortage is squeezing margins across the phone supply chain at a moment when demand was already soft. The same shortage cuts the other way for memory suppliers. Micron's board raised the company's share buyback ceiling to $35.16 billion, a move that signals the chipmaker sees its own cash generation and pricing power improving even as the broader phone market shrinks. Tight memory supply tends to support chipmaker pricing while raising costs for everyone downstream. What's unresolved is how long the shortage persists and whether phone makers pass costs to consumers or absorb them. The wires did not specify a shipment volume or percentage decline for the quarter.