Apple Inc. (NASDAQ:AAPL) remains better positioned than several smartphone chip rivals as rising memory costs, longer replacement cycles and cautious OEM inventory management weigh on the global smartphone SoC market, according to Counterpoint Research.
Apple, Samsung Show Greater Resilience
Counterpoint said on Friday that global smartphone SoC shipments fell 21% year over year in the third quarter of 2026, with mid- and entry-tier devices facing the greatest pressure.
The research firm said Apple and Samsung Electronics Co. Ltd. (OTC:SSNLF) weathered the downturn better because of integrated supply chains and their established shift toward premium devices.
By contrast, UNISOC and MediaTek faced greater pressure because of their higher exposure to mid- and low-end smartphones.
Counterpoint said Qualcomm Inc. (NASDAQ:QCOM) also faced headwinds from Samsung’s decision to split Galaxy S26 chip supply between the Snapdragon 8 Elite Gen 5 and its own Exynos 2600, alongside softer sales among Chinese smartphone makers.
Flagship Chips Could Support Q4
Counterpoint Senior Analyst Shivani Parashar said Apple’s A20 series, MediaTek’s Dimensity 9600 Pro and Qualcomm’s Snapdragon 8 Elite Gen 6, all based on Taiwan Semiconductor Manufacturing Company Ltd.’s (NYSE:TSM) 2nm process, should support premium smartphone SoC shipments in the fourth quarter.
However, Counterpoint still expects premium-chip volumes to remain below year-ago levels.
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Memory Costs Pressure Lower-End Devices
Counterpoint said smartphone memory prices rose 5%-10% in the third quarter and are expected to increase another 5% sequentially in the fourth quarter.
Some entry-level smartphone vendors have started using recycled memory to control bill-of-material costs, but Counterpoint said technical barriers involving SoC, peripheral and RF integration should keep adoption limited.
Market Contraction Extends Into 2027
Counterpoint Principal Analyst Soumen Mandal expects global smartphone SoC shipments to decline 20% in 2026 and another 3%-4% in 2027.
He expects memory prices to remain elevated but become less volatile next year.
Counterpoint sees flagship SoCs remaining broadly stable in 2027 despite higher costs tied to the transition to 2nm process technology, while rising memory and component prices continue pressuring the broader smartphone supply chain.
AAPL Price Action: Apple shares were down 1.09% at $345.10 during premarket trading on Friday. The stock is approaching its 52-week high of $351.73, according to Benzinga Pro data.
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