Apple shares fall despite record revenue as outlook disappoints

Counterpoint Research revealed that Apple achieved a record 49% share of global smartphone revenue during the second quarter. Despite a decline in shipments across the market, the company's revenue surged by 22% year-over-year, marking its highest-ever revenue share for a Q2. Apple's average selling price climbed to $946, up from $879 a year prior, while its shipment share increased to 21%, up from 17% in the same period last year.

The report noted that Apple's growth was driven by sustained demand for the iPhone 17 lineup, particularly the base iPhone 17 and iPhone 17 Pro Max, which kept the brand's product mix focused on premium offerings. Unlike competitors who raised prices significantly, Apple maintained largely stable pricing, reflecting its capacity to absorb increasing component costs and insulation from the memory shortage.

While the company remains in second place behind Samsung in terms of shipment share (23%), other top brands in the top five all experienced declines in shipment shares, with Xiaomi seeing the steepest drop from 14% to 11%. The market-wide memory shortage forced several manufacturers to raise prices as component costs rose and supplies tightened.

Apple's disciplined pricing strategy, coupled with sustained demand for its premium devices, bolstered its competitive position, enabling growth in both volume and value despite a contracting market. Regional performance was strong in China, Europe, and emerging markets, where stable pricing improved Apple's relative value proposition amid widespread Android price increases.

The report follows Apple's fiscal Q3 2026 earnings call, where the company warned of significant supply constraints in the September quarter, particularly for the iPhone, iPad, and Mac.