Chip shortage sees smartphone sales fall 6.8%


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Aug 17, 2014
In a nutshell: Global smartphone sales were down 6.8% in the third quarter of the year, but the slump wasn’t due to falling demand: blame the chip crisis. It was a positive Q3 for Apple, though, which has moved ahead of Xiaomi to take the second-largest market share behind leader Samsung.

The data comes from Gartner’s latest market intelligence report. The research company notes that the depressingly familiar problem of the chip shortage has seen smartphone sales to end-users fall 6.8% year-on-year.

“Despite strong consumer demand, smartphone sales declined due to delayed product launches, longer delivery schedule and insufficient inventory at the channel,” said Anshul Gupta, senior research director at Gartner. “Supply constraints impacted the production schedule of basic and utility smartphones much more than premium smartphones.”