In a significant shift in the US smartphone market, Samsung has made notable gains in market share against Apple, challenging the latter's decade-long dominance. Data from Canalys reveals that Samsung's shipments in the US surged in the second quarter, increasing its market share from 23% to 31%. In contrast, Apple's share dropped from 56% to 49%, although it still maintains its position as the market leader.

Samsung's success is largely attributed to the strong performance of its new foldable phones, the Z Fold 7 and Z Flip. These devices, with prices ranging from $650 to $2,400, have captured significant attention, particularly on social media where durability tests have garnered millions of views. Samsung reports that its new foldable models are more resilient than ever, achieving 25% more pre-orders than previous versions and seeing sales up by nearly 50% compared to their predecessors.

Drew Blackard, Vice President of Samsung Electronics America, stated, "There are no more compromises to owning a foldable phone." This aligns with Samsung's strategy of pioneering new form factors, further enhanced by expanded access to AI features through Google Gemini. Meanwhile, Apple is gearing up to launch a slimmer 5.5mm iPhone Air in the fall and is reportedly preparing its first foldable iPhone for 2026. This divergence in strategy is reflected in investor confidence, with Samsung's stock rising approximately 35% in 2025, while Apple's shares have declined by 7.5%, signaling optimism about foldable phones becoming mainstream.

Key Indicators

Signal for Market/Industry: This shift indicates that foldable phones have become a significant competitive market, and innovation in device form factor can rapidly alter market dynamics. It also reflects Samsung's ability to attract a new user segment interested in unique and technologically advanced devices.
Leading Indicators and Data Points: Samsung's US smartphone market share increased from 23% to 31% in Q2. Samsung's overall sales in the US rose by 16% in Q2. Samsung's new foldable phones saw a 25% increase in pre-orders and nearly 50% increase in sales compared to previous versions. Samsung's stock rose 35% in 2025, while Apple's stock fell 7.5%.

Regional Perspective

Within the United States, this shift in market share represents a significant change in one of the world's largest smartphone markets. Samsung's success is driven by its ability to offer innovative phones that meet evolving consumer preferences, particularly appealing to a younger demographic seeking unique and cutting-edge devices. This strategy puts pressure on Apple, which has traditionally relied on its strong brand loyalty and familiar designs.

Analysis

Samsung's rise in the US smartphone market, propelled by foldable phones, highlights a strategic shift in competition with Apple. While Apple remains the market leader, Samsung's strategy of continuous device innovation, coupled with a broad price range offering, gives it a competitive edge. The long-term implication is that foldable phones may become a mainstream staple, compelling Apple to accelerate its own plans in this area. Samsung's strong stock performance also suggests investor optimism about the company's future and its ability to compete effectively against other tech giants.