Apple captured 20% of global smartphone shipments in Q2 2026, the strongest second-quarter showing in the company’s history, even as the overall smartphone market contracted 4% year-over-year amid a severe memory chip shortage. Samsung led the rankings with 24% market share, followed by Xiaomi at 12%, OPPO at 11%, and vivo at 8%.
As per a report by Counterpoint Researc, Apple grew shipments 3% year-over-year and gained three percentage points of market share while keeping iPhone prices flat. Every other major OEM was forced to raise prices or cut corners. Samsung, which gained four percentage points, grew faster on the back of strong Galaxy S26 demand and more aggressive promotions, but faced the same component cost pressures as the rest of the industry.
Apple’s flat pricing reflects a structural advantage in the current environment. The memory chip shortage, driven by manufacturers prioritizing advanced memory for AI servers over basic DRAM used in smartphones, has inflated component costs 10% to 25% across the board. Chinese brands like Honor and OPPO face the sharpest pain: entry-level smartphone costs have jumped 20% to 30% since early 2025. Apple’s supply chain clout, vast cash reserves, and ultra-premium positioning allow it to absorb those hits in the short term without adjusting retail prices. Samsung can do the same. Almost nobody else can.
The Q2 result is especially striking because it bucked seasonal expectations. Q2 is normally Apple’s weakest quarter, the stretch between spring launches and the September refresh cycle. The iPhone 17 series sustained demand through the period, unusual staying power that suggests the extended product cycle (the iPhone 18 is not expected until spring 2027) will prop up volumes longer than typical. Apple also ran aggressive trade-in programs and leaned on system stickiness to retain customers during a market downturn.
An exception here is that Apple’s shipments declined year-over-year in China despite an early promotional campaign ahead of the 618 summer shopping festival. The promotions were less aggressive than 2025, and they failed to offset regional softness. Huawei and other local competitors remain formidable in China, and saturation in the installed base is a real constraint on growth there. That’s the one blemish on an otherwise commanding quarter.
The broader market will stay under pressure for the near future. Global smartphone shipments are expected to decline around 14% for the full year 2026, and the memory shortage is forecast to persist into 2027. Manufacturers across the industry will continue to cut low-margin models, adjust storage configurations, and shift mix toward refurbished and previous-generation devices. Apple and Samsung are best positioned to weather the storm. For everyone else, it’s a slow squeeze on margins.
Counterpoint Research expects Apple’s entry into the foldable phone market to drive a 24% increase in foldable smartphone panel shipments this year, with foldable revenues rising around 48% year-over-year. The iPhone Fold, whenever it lands, could redefine Q2 2027 dynamics and provide volume momentum as the iPhone 17 ages out of peak demand.
