Apple Inc. holds a near-monopoly among the world’s wealthiest smartphone buyers, giving the company pricing power unmatched by any rival as the industry confronts rising component costs that are expected to shrink overall shipments by a double-digit percentage this year.
The smartphone industry defines a “premium” device as one priced at $600 or above. In that segment, Apple controls more than two-thirds of the market, according to data from International Data Corp. At the $1,000-and-up level, Apple captures more than three-quarters of the market. Only a handful of competitors field phones at that price point — Samsung Electronics’ top-line Galaxy S25 Ultra, Huawei’s Mate X6 and Google’s Pixel 10 Pro XL, the Wall Street Journal reported.
Apple’s latest iPhones ranked as the industry’s three bestselling models worldwide in the first quarter of 2026. Even the year-old iPhone 16 cracked the top five.
The company’s grip on the premium tier translates into outsized profit capture. Most smartphones are sold at thin margins, with manufacturers often benefiting indirectly — Samsung’s midtier phones help sustain its affiliates’ components business; Xiaomi devices connect to the company’s electric vehicles and other products. Apple sells mostly high-end devices and its profit margins dwarf everyone else’s, the Journal reported, citing industry data. Apple did not respond to requests for comment.
Costlier memory chips prompted Apple Chief Executive Tim Cook to tell the Journal that price increases were unavoidable. Other smartphone makers have also pushed through price increases due to rising component costs. The resulting sticker shock has contributed to a projected double-digit percentage drop in industrywide shipments this year.
The premium segment is expected to be the exception, with modest growth forecast even before Apple publicly detailed its pricing plans, the Journal reported. About three-quarters of smartphones sold worldwide are priced under $600.
In the United States, Apple’s lead over Samsung has widened considerably over the past decade. The iPhone now holds a market share of roughly 60% in one of Apple’s most profitable markets, according to the Journal.
Apple’s overall smartphone market share by volume is roughly one in five of the 1.3 billion handsets shipped last year — similar to Samsung and not far ahead of China’s Xiaomi. But the revenue picture tells a different story: thanks to its pricing power, Apple captures the overwhelming majority of the industry’s gross profits.