iPhone 17 demand pushes Apple higher in shrinking US market

Apple increased its iPhone sales in the United States during the first quarter of 2026, even as the broader smartphone market declined, fueled by both strong demand for the iPhone 17 and Samsung’s delayed launch of the Galaxy S26.

iPhone sales volume in the United States increased 1.3% year-over-year during the first quarter of 2026, according to Counterpoint’s US Monthly Smartphone Channel Share Tracker. The US smartphone market shrank 5.7% during the same period, while Android smartphone sales fell 14.4% year-over-year.

Apple gained market share from AT&T, T-Mobile and Verizon during the quarter. Verizon saw the biggest change, with Apple reaching 77% of smartphone sales in the first quarter of 2026.

Supply constraints during the 2025 holiday quarter continued to limit iPhone availability through early 2026, extending demand for the iPhone lineup through much of the first calendar quarter. Counterpoint said the base iPhone 17 model also saw stronger-than-expected demand during the first quarter of 2026.

Samsung delayed the Galaxy S26 launch until mid-March, creating a wider opening in the premium smartphone market in the first quarter of 2026. The US premium smartphone segment remains heavily concentrated around Apple, Samsung, Google and Motorola.

Launch timing is more important in this type of market because flagship devices drive a significant portion of upgrade activity.

Apple’s pricing and carrier strategy continues to strengthen its position

Carrier relationships remain one of Apple’s key advantages in the US smartphone market. Verizon saw the biggest change in the first quarter of 2026, with Apple reaching 77% of smartphone sales.

Apple’s advantage has extended beyond Samsung’s delayed Galaxy S26 launch. The company has kept the price of the iPhone 17e relatively stable while increasing entry-level storage to 256GB.

Rising memory costs have pushed competing smartphone makers to raise prices over the same period. Operator incentives, financing offerings, and ecosystem retention are increasingly shaping purchasing decisions alongside hardware specifications.

Apple also strengthened its promotional position on devices priced above $600 on U.S. postpaid channels during the quarter, outperforming Samsung in Counterpoint’s Smartphone Promotional Index. Apple’s pricing and carrier strategy places more emphasis on keeping users in the iOS ecosystem and growing service revenue in the long term.

The report indicates that this strategy could limit material margin growth in certain segments. Smaller Android vendors may struggle to match the company’s pricing consistency, carrier support and marketing scale as component costs continue to rise.

Samsung and Motorola gained market share in domestic prepaid and retail smartphone sales during the first quarter of 2026. Image credit: Counterpoint Research

The prepaid and low-cost smartphone segments continued to weaken in the U.S. market in the first quarter of 2026. Rising gas prices and debt payments offset the impact of larger tax refunds, leaving low-income consumers under continued economic pressure during tax season.

The sales weakness has been particularly severe below the $100 smartphone level, where rising memory costs and shrinking margins are putting pressure on smaller Android brands. Samsung and Motorola have gained market share in prepaid channels such as Cricket and Metro.

Brands such as TCL, HMD, Maxwest, Orbic and Blu lost market share, delayed their refresh cycles or struggled to maintain marketing support during the quarter. These changes point to a more consolidated U.S. smartphone market as smaller brands lose ground.

The U.S. smartphone market is becoming increasingly consolidated, with Apple strengthening its position in high-end devices while Samsung and Motorola are absorbing a larger share of the shrinking low-cost segment.