Apple's Price Hike Unavoidable Amid Component Crisis

In the second quarter of 2026, Apple secured its highest-ever revenue share, capturing 49% of the market. This impressive performance, a 22% year-over-year increase in revenue, was largely attributed to the company absorbing the escalating costs of components like RAM without raising iPhone prices. This strategy significantly strengthened Apple's competitive position, particularly in markets like China and Europe, where its pricing became more attractive compared to Android alternatives.

While Apple currently benefits from its stable pricing, this advantage may be temporary. CEO Tim Cook has indicated that price increases for its products are "unavoidable," following earlier price hikes on non-smartphone items. This outlook suggests a shift in Apple's pricing strategy could be imminent.

Meanwhile, Samsung secured second place with a 16% revenue share, experiencing 9% growth in both revenue and shipments, boosted by its Galaxy A-series and S26 models. Chinese manufacturer Xiaomi, however, saw a 17% revenue dip, partly due to its reliance on entry- and mid-tier devices susceptible to the memory crisis.

Overall, the global smartphone market generated a record $109 billion in Q2 2026, a 7% increase year-on-year, despite a decline in shipments. This revenue growth was driven by a 17% rise in average selling prices, reaching $400 per unit. Experts predict the RAM shortage could persist, with some forecasts extending it into 2030 or worsening by 2027.