Global smartphone revenue grew 3% year-over-year (YoY) in quarter three (Q3) 2026 to $114 billion, despite a steep 19% YoY decline in shipments, according to Counterpoint Research’s latest Market Monitor Service.
Higher average selling prices (ASPs) helped support revenue growth, offsetting the sharp decline in volumes. Premiumization, a stronger product mix and memory-driven price increases across segments pushed global ASP up 27% YoY to $442, its highest-ever level for a quarter.
Apple recorded its highest-ever Q3 revenue with 17% YoY growth and captured a record 50% share of global smartphone revenue for the quarter, while its ASP also grew 19% YoY, supported by sustained demand for the iPhone 17 series and early traction for the iPhone 18 Pro series.
“Apple remained the most resilient major brand in Q3 2026, with shipments nearly flat YoY,” said Counterpoint Research Director Tarun Pathak. “Apple has the pricing power to absorb rising memory costs and pass them on to consumers with minimal impact on demand. At the same time, ASP growth was supported by higher launch prices for the iPhone 18 Pro series, the absence of the base iPhone 18 from the launch and price increases across older models in September. Together, these factors helped Apple deliver strong revenue growth in an otherwise challenging market.”
Samsung ranked second with a 19% revenue share, with revenues up 14% YoY, while retaining its lead in shipments with a 22% share. Revenue growth was primarily driven by a 21% YoY rise in ASP to $367.
Pathak said the revenue resilience seen so far is unlikely to continue into the next quarter. In quarter four of2026, shipment declines are expected to outpace ASP growth, pushing global smartphone revenue into contraction. However, stronger ASPs in the first three quarters should keep full-year 2026 revenue higher YoY, he adds.
Counterpoint says that, in 2027, elevated memory costs will continue to pressure manufacturer’s margins and drive further price increases. Shipments are expected to decline again, though at a slower pace than in 2026, while higher ASPs should lift revenue growth above 2026 levels. Cost relief is expected only in 2028, when manufacturers may reinvest savings in device upgrades rather than lower prices, noted Counterpoint.
I hope you’ll help support Apple World Today by becoming a patron. Almost all our income is from Patreon support and sponsored posts. Patreon pricing ranges from $2 to $10 a month. Thanks in advance for your support.
Article provided with permission from AppleWorld.Today