Apple Inc. (NASDAQ:AAPL) continued to outperform the broader smartphone market in the second quarter, but analysts caution that the industry’s worsening memory shortage could weigh on demand for the rest of the year.
According to Counterpoint Research, Apple’s global smartphone shipments rose 3% year over year in the second quarter, while its market share reached a record 20% for a second quarter. The company was also the only major smartphone maker that did not raise handset prices during the period despite soaring memory costs.
Apple Outperforms Amid Industry Weakness
Counterpoint said global smartphone shipments fell 11% year over year in the second quarter to their lowest second-quarter level since 2013 as DRAM and NAND shortages pushed up production costs and consumer prices.
Apple’s growth was driven by continued demand for the iPhone 17 lineup, which remained the world’s top-shipped smartphone family during the quarter. However, the research firm noted that China remained a weak spot, where Apple’s shipments declined from a year earlier despite promotions ahead of the annual 618 shopping festival. Older iPhone models also faced softer demand as component allocations favored newer devices.
Counterpoint said Samsung Electronics Co. Ltd. (OTC:SSNLF) regained the top spot in global smartphone shipments with a 24% market share during the quarter, helped by strong Galaxy S26 sales and aggressive promotions. Xiaomi Corp. (OTC:XIACY), OPPO, and vivo posted double-digit shipment declines as their heavier exposure to lower-priced devices made them more vulnerable to rising memory costs.
Analysts See Memory Shortage Driving Industry Pressure
Counterpoint Senior Analyst Shilpi Jain said the global memory shortage has become the biggest challenge facing the smartphone industry.
“The global memory crisis has now overtaken every other factor as the single biggest drag on the smartphone industry,” Jain said, adding that rising component costs, geopolitical tensions, higher shipping expenses and weaker consumer sentiment are hurting demand, particularly in entry-level and midrange smartphones.
The firm expects industry conditions to remain difficult through the rest of 2026 and believes the memory shortage could persist into 2027. While premium smartphones are expected to remain relatively resilient because of financing offers, ecosystem loyalty and AI-driven features, overall demand is unlikely to recover meaningfully until memory supply improves.
AAPL Price Action: Apple shares were down 1.06% at $313.95 during premarket trading on Tuesday. The stock is approaching its 52-week high of $323.45, according to Benzinga Pro data.
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