MW Apple is defying a global smartphone slump, as shown through this first-time feat
By Christine Ji
Apple claimed the top global smartphone spot for the first time in a March quarter thanks to the success of the iPhone 17e and nifty supply-chain moves
Apple managed to grow its shipments by 6% even as the broader global smartphone market shrank in the first quarter.
Apple has seized the top position for smartphone market share - something that's never before happened in the first quarter of the year.
The company $(AAPL)$ has leveraged its entry-level iPhone 17e and supply-chain strategy to increase its grip on the smartphone market, Bernstein analyst Mark Newman wrote in a Monday note, citing third-party data. Apple led global smartphone shipments for the March quarter, posting a 6% year-over-year increase and capturing 21% of the overall market, even as global smartphone shipments fell 6% from a year before.
Apple is seeing strong demand for its products driven by the introduction of new budget offerings that have captured significant volume at lower price points. Introduced in March and priced at just $599, the 17e has successfully tapped into demand for lower price tiers, outperforming what the 16e showed in the aftermath of its launch. Newman noted that a rebound in demand from China was an especially strong driver of iPhone sales last quarter, partially as a result of "improved competitive positioning" against domestic smartphone providers.
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The overall contraction in the smartphone market has been partly the result of an ongoing memory shortage, which has constrained production and driven up the cost of components. Analysts have long speculated that the memory shortage would allow Apple to gain market share, and Apple's "proactive supply chain management" has allowed for exactly that, according to Newman.
Apple has actually been increasing the amount of dynamic random-access memory in its phones over the past few years to prepare for its launch of Apple Intelligence. With the iPhone 17 series, most modelsreceived a 50% boost to 12 gigabytes, Newman highlighted. Apple has reportedly been buying up large quantities of DRAM to squeeze competitors and secure its own supply.
Currently, Apple can offset some of the rising costs by using inventory from existing lower-cost contracts. "That said, even when inventory getsfully used up and cost pressure starts to show, we believe iPhone will be more resilient than competing phones, in light of its high profitability to absorb cost increases," Newman wrote.
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However, Newman warned of a "slight downside risk" to Apple's iPhone revenue for the March quarter. An increased mix of budget models has dragged down Apple's average selling price to $910, below the Wall Street consensus of $948, according to Newman.
Apple reports its quarterly earnings this Thursday, April 30.
-Christine Ji
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April 27, 2026 10:11 ET (14:11 GMT)
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