Cheap smartphones are dead. Apple doesn’t care
An important but potentially fragile trend is emerging in the data being reported by smartphone industry trackers: while painful component price increases are denting overall phone sales, the iPhone’s market share continues to increase. This likely reflects two key truths: Apple has fought to keep iPhone prices as stable as possible; though it has raised the price for its other products, it has…
A significant but potentially fragile development is emerging in smartphone industry data, according to industry trackers. Despite painful component price increases, Apple's iPhone market share continues to rise. This is likely due to two key factors: Apple's efforts to keep iPhone prices stable, while not yet raising prices for its other products; and the company's reputation for producing smartphones that maintain value and hold up over time.
Consumers recognize the quality of these devices and view iPhones as a more valuable alternative as other smartphones become increasingly expensive. Apple's latest 'e' series iPhones are also expanding into the mid-range/value smartphone market, challenging other incumbents who face rising costs from AI-driven memory price inflation.
Smaller vendors are struggling to keep up due to their smaller scale of component orders, with many raising prices or exiting markets altogether. The trend is global, with a record 16.7% decline in smartphone shipments expected in 2026 due to the memory crisis, causing ASPs to increase by 27.6%. While total shipments are falling, the market value is increasing due to higher prices.
The premium smartphone market, dominated by Apple and Samsung, remains more resilient. The era of cheap smartphones has ended, with Apple expected to gain further share as the market declines. However, Apple has not yet raised iPhone prices, but is expected to increase them by $100 in the coming weeks. Despite this, the iPhone 17 is currently the world's best-selling smartphone, with Apple and Samsung dominating the top 10 devices.
The introduction of Apple Upgrade offers customers an affordable route to invest in new Apple devices. The future of smartphones may lie in foldable devices, which are expected to be popular among affluent consumers willing to pay a premium for Apple's latest offerings. Apple's AI strategy, particularly through its partnership with Alibaba in China, could further enhance its position in the market.
Written by urgent.news from Computerworld's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
