The global smartphone market experienced a 4.1% year-on-year drop in Q1 shipments, ending a 2.5-year growth streak. Memory shortages driving component costs up 100%+ have forced price hikes across most brands, particularly in emerging markets where prices surged 40–50%, crippling demand. Apple’s decision to absorb margin pressure while maintaining stable pricing has differentiated it, with iPhone shipments rising 3.3% despite industry contractions.

Samsung followed suit with modest price increases on Galaxy Z Flip 7 and S25 Edge models, but Apple remains the sole major player avoiding consumer-facing cost passes. Analysts suggest Apple’s growth-first approach risks short-term margins but capitalizes on competitors’ pricing turmoil.