Smartphone shipments dropped 11% year-on-year in Q2 to their lowest level since 2013, as AI-driven memory shortages pushed prices higher.

The biggest fall was in China, where three of the biggest five suppliers saw sales slump, the fifth straight quarterly decline.

Entry-level smartphone prices are up more than 50% this year, a report found last month. In cheaper phones, memory often accounts for half the total manufacturing cost: DRAM and NAND memory prices have soared recently as AI scoops up supply, with 32GB kits that sold for $100 in October now going for $350 “if it’s even in stock,” Tom’s Hardware reported. However, Apple and Samsung, which kept consumer prices steady, saw sales grow slightly last quarter.