Shares in Apple (AAPL) were flat today despite defying the Iran war and memory supply shortages to beat off Chinese rivals in first quarter global sales.
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Apple Defies Global Shipments Plunge
According to the latest research from Counterpoint, global smartphone shipments dropped 6% year-over-year in Q1 driven by the shortage of DRAM and NAND memory components and weaker demand as consumer sentiment was battered by the U.S. and Iran war.
Tech titan Apple, however, defied the gloom, by leading the way with a 21% market share over the period. It grew shipments by 5% year-over-year, boosted by strong demand for the iPhone 17, ‘proactive supply chain management amid memory constraints, and improved performance in China, India and Japan.’
Samsung’s (SSNLF) shipments, however, declined 6% year-over-year recording a 20% market share due to the delayed Galaxy S26 launch and weakness in the entry-tier segment.
Beyond the top five brands, Google (GOOGL) and Nothing grew 14% and 25%, respectively, driven by expanding channel presence, strong model traction, and clear niche differentiation.
The report showed that overall market sentiment remained cautious as OEMs adjusted their pricing production strategies, including going in for product delays and fewer launches.
Prioritizing AI Data Centers
At the same time, some OEMs frontloaded shipments in anticipation of component price hikes and logistics cost escalation, offsetting a greater drop in shipments.
Commenting on the global smartphone market, Senior Analyst Shilpi Jain said, “This decline in shipments is primarily driven by memory players prioritizing AI data centers over consumer electronics, leaving OEMs with compressed margins and forcing them to pass increased costs directly to the consumer. The shortage of memory chips and rising costs have impacted the price-sensitive segments the most, such as entry and mid-range devices, which are most exposed to such demand and supply pressures.”
Jain said that while premium device makers like Apple remained relatively resilient to these pressures, volume-driven Chinese brands experienced sharper declines, especially in price-sensitive regions, contributing to the overall drop in global shipments. Apple remains the most insulated brand against the memory crisis, it said, due to its ultra-premium positioning and highly integrated supply chain.
Is AAPL a Good Stock to Buy Now?
On TipRanks, AAPL has a Moderate Buy consensus based on 14 Buy, 8 Hold and 1 Sell ratings. Its highest price target is $350. AAPL stock’s consensus price target is $304.40, implying a 16.86% upside.
