Apple, Samsung Can Absorb the Smartphone Cost Shock — Smaller Rivals May Not Be so Lucky
Key takeaways
- Apple and Samsung can absorb the smartphone cost shock, but smaller rivals may not be so lucky.
- Smartphone sales fell 8.6% year over year during the first 30 weeks of 2026
- Sales of smartphones priced below $100 tumbled 64%
- Smartphone sales fell 5% year over year in the second quarter
What happened
Smartphone sales fell 8.6% year over year during the first 30 weeks of 2026, with sales of smartphones priced below $100 tumbling 64%.
Why it matters
The decline in smartphone sales is attributed to higher memory costs, which are forcing manufacturers to increase prices, and broader macroeconomic pressures that are hurting consumer demand.
Short-term and longer-term
Short-term. Apple and Samsung can absorb the smartphone cost shock, but smaller rivals may not be so lucky.
Longer-term. The decline in smartphone sales is likely to have a negative impact on companies such as Huawei and Motorola, which may struggle to maintain their market share.