INDUSTRY BRIEF: Chinese smartphone makers bear the brunt of soaring memory prices

Global smartphone shipments fell 4.1% year-on-year to 289.7 million units in the first quarter, as China’s top three players lost market share to global leaders Apple (AAPL.US) and Samsung (005930.KS), according to data released by IDC on Tuesday.

Samsung was the world’s top smartphone seller during the quarter with 62.8 million units shipped, up 3.6% year-on-year. Apple came in second with 61.1 million units shipped, up 3.3%. Xiaomi was third, but its shipments plunged 19.1% in the first quarter to 33.8 million units, as its share of the global market fell to 11.7% from 13.8% a year earlier.

Oppo and Vivo rounded out the top five, recording year-on-year shipment declines of 9.9% and 6.8%, respectively.

IDC said the entire industry has been struggling to cope with soaring memory prices. But the Chinese brands have been forced to raise their prices due to their lower margins. By comparison, Apple and Samsung have been able to use their premium status to absorb the higher memory costs without raising prices as much.

By Doug Young

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