Apple's iPhone Under Threat from Samsung

The Smartphone Market and Apple’s Challenges

The smartphone market has remained relatively stable over the past decade, with few groundbreaking changes. As a result, many consumers have opted to stick with their older Apple iPhones instead of upgrading to newer models that often offer only minor improvements rather than significant overhauls. This trend poses a challenge for Apple, as it could lead to reduced iPhone sales and a potential loss of market share to competitors like Samsung.

According to data from Telemetry, the most commonly owned iPhone is the iPhone 13, which makes up 16.3% of all iPhones in use. This is particularly notable given that Apple releases new iPhone models annually and the iPhone 13 was launched in 2021. The continued popularity of an older model suggests that many users are satisfied with their current devices and see little reason to upgrade.

Samsung Gains Ground in the Market

Samsung has been making strides in capturing market share from Apple. Recent data from Canalys/Omdia on the US smartphone market highlights that Samsung's innovative approach, including the introduction of foldable and flippable phones such as the Galaxy Z Fold 7 and Galaxy Flip 7, is resonating with consumers.

Based on second-quarter smartphone shipment data, these innovations may be helping Samsung chip away at Apple’s market share. While Apple’s iPhone shipments declined by 2% year-over-year to 44.8 million units in the second quarter of 2025, Samsung’s shipments increased by 7% to 57.5 million phones. As a result, Apple’s market share remained flat at 16%, while Samsung’s rose by 1% to 20%.

In the global smartphone market, the top five manufacturers based on market share according to Canalys/Omdia are:

• Samsung: 20%
• Apple: 16%
• Xiaomi: 15%
• vivo: 9%
• TRANSSION: 9%

Analysts note that many vendors are preparing for a busy launch season in Q3, focusing on topics such as AI, foldables, and slimness to boost demand ahead of the holiday shopping season.

Samsung’s Strategic Shift

Samsung has refocused its strategy on “smart volume,” aiming to profitably scale its mass-market Galaxy A series while continuing to grow its premium models. This approach allows the company to cater to a broader range of consumers, offering smartphones at various price points.

For example, the current Galaxy A36 is significantly less expensive than the S35 (which is expected to be released in 2026). The Galaxy A36 is priced at $399.99, while the S35 is priced at $799.99. This pricing strategy helps Samsung attract budget-conscious consumers while still maintaining a presence in the premium segment.

Apple’s Struggles with Innovation

Apple founder Steve Jobs was known for his "one more thing" product reveals, which marked a period of significant innovation at the company. However, under CEO Tim Cook, Apple has shifted its focus toward incremental improvements rather than major overhauls.

Major iPhone launches, such as the iPhone 6 in 2014 and the iPhone X in 2017, introduced features like larger screens and edge-to-edge displays. Despite improvements in internal components, such as more powerful chips, there have been no dramatic changes that would prompt Apple loyalists to rush to upgrade.

This perceived lack of innovation contradicts Apple’s long-standing reputation for reshaping design and how consumers interact with their devices. For instance, Apple’s iPhone design remains largely similar to previous generations, and the company has yet to introduce a foldable display like Samsung’s.

Additionally, Apple Intelligence features lag behind those found in rival AI chatbots such as Google’s Gemini, OpenAI’s ChatGPT, and Anthropic’s Claude.

Will Apple Launch Breakthroughs in 2026?

Tim Cook is aware of the perception that Apple is falling behind in AI and smartphone innovation. Recent rumors suggested that Cook might make a significant AI acquisition, with Perplexity, a top AI chatbot, being a possible target. However, Perplexity recently made an unsolicited $34.5 billion bid for Google Chrome, which could make such an acquisition too costly for Apple.

Despite the decline in the likelihood of large-scale M&A, there is hope for major product unveilings in 2026. Potential launches include:

• A more robust AI chatbot version of Siri for iPhones.
• An AI-powered desktop 'Robot' with a display and arm.
• A redesigned Apple Watch with enhanced health-monitoring features.