Apple Dominates Global Smartphone Market Amid Industry Slump

Apple's steady pricing strategy has paid off in the global smartphone market, with the company capturing a record 20% share in the second quarter of 2026. This is despite a 4% year-over-year decline in worldwide shipments, which is attributed to a memory chip shortage.

The shortage has pushed component costs sharply higher, with some vendors reportedly paying several times more for memory than a year ago. Apple, however, has managed to maintain its pricing strategy, keeping iPhone prices flat across its lineup. This has helped the company to maintain its market share, while rivals have struggled to cope with the rising costs.

Samsung was the only other major vendor to grow, holding 22% market share, while Chinese competitors pulled back their lineups and raised prices to cope with the shortage. Omdia expects the industry slump to worsen over the next two quarters due to tight supply and rising component costs.

This development is significant, as it sets the stage for an iPhone 18 cycle that will likely face rising component costs of its own. Apple will need to navigate this challenging environment to maintain its market share and continue to drive growth in the global smartphone market.