Driven by memory shortages, the smartphone market is shifting toward fewer yearly shipments and higher average selling prices (ASP). The shift puts the entry-level segment and budget OEMs at risk, but Apple and Samsung are navigating the current market conditions more easily.

Global smartphone shipments declined 19% year-on-year. Even so, global smartphone shipment revenue was 3% higher in Q3 2026 than last year. That's because despite lower shipments, average selling prices surged 27%.

This strategy seems to be the only viable one for Samsung and Apple right now, but it poses great risks and could become dangerous long-term.

Apple recently recorded its highest-ever revenue for a third calendar quarter. In Q3 2026, Apple captured a record 50% share of global smartphone revenue.

Samsung ranked 2nd in the same period. It improved revenue 14% year-on-year and captured a 19% revenue share in October. The third spot was secured by Xiaomi with a revenue share of only 6% of the total market.

By shipments, Samsung maintained the lead in Q3 2026 with a 22% share, while Apple had a 21% shipment share. Xiaomi, Oppo, and Vivo had 12%, 9%, and 8% of shipments, respectively. The rest was shared among smaller OEMs.

Industry watchers say that the market is currently facing a trade-off between shipment volumes and value. OEMs are shipping fewer phones for higher prices, but Apple and Samsung are navigating these conditions relatively successfully. However, it is not the best long-term strategy and could backfire.

It's not the best approach in the long run, but it seems to be the only one right now. The bigger issue is that this strategy seems even less sustainable for the entry-level segment, where there already is too little room to offset fewer shipments with higher average selling prices.