IDC: China's Q3 smartphone shipments fell 15.4% YoY to 57.9M units, the sixth straight quarter of decline; Huawei led with a 21% share and Apple had 17.8% (Reuters)
China's third-quarter smartphone shipments fell 15.4% from a year earlier to 57.9 million units, research firm IDC said on Tuesday.
TrendForce predicts a slight decline in global laptop shipments by a low single-digit percentage in 2027. Manufacturers are reevaluating their production methods due to increasing costs, with the production share outside China dropping from 24% in 2025 to potentially below 20% in 2027. The primary issue stems from a combination of component availability challenges and weakening consumer demand amidst high CPU, DRAM, and SSD prices.
If component prices persist at elevated levels, brands may increase these expenses for consumers. Despite improved CPU availability and component stockpiling in 2026, the firm cautions that this doesn't guarantee robust demand. Anticipating higher prices, some customers have already upgraded to newer devices ahead of schedule. Consequently, fewer individuals will be inclined to purchase new laptops in 2027.
As inventories purchased at lower prices dwindle, manufacturers will face greater pressure to absorb higher component costs or transfer them to consumers. This could lead to higher retail prices, which would further reduce demand, while absorbing the additional costs would reduce profit margins. Moreover, manufacturers may revise specifications, such as memory capacity, to manage production costs, potentially diminishing product competitiveness.
The CPU, DRAM, and SSD collectively constitute roughly 68% of the bill of materials (BOM) cost for mainstream laptops priced at $900 manufacturer's suggested retail price in Q3 2026. Manufacturers are unlikely to sustain pricing, specifications, and profitability concurrently in 2027. Persistent component cost increases will continue to burden manufacturers.
While DRAM supply is expected to remain constrained due to AI demand, NAND flash availability may improve in the second half of 2027. TrendForce emphasizes that the main challenge lies in assessing whether consumers can handle higher laptop prices. If manufacturers manage to curb price increases by adjusting specifications and absorbing some costs, shipments might see a slight decline in 2027.
However, if higher costs are ultimately passed on to consumers, the decline could reach the high-single-digit range.
Written by urgent.news from Tom's Hardware's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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