In 2014, the competition between Apple and Samsung to dominate the U.S. smartphone market was intense. At that time, Samsung was gaining traction with its large-screen devices, and iPhone enthusiasts were eagerly awaiting a response from Apple. After a significant wait, Apple launched the iPhone 6, marking a pivotal shift by introducing a larger screen option for consumers. This move proved successful, and Apple emerged victorious. However, over a decade later, recent data indicates a resurgence in the Apple-Samsung rivalry, once again centering on screen size and innovation.
According to data from Canalys, Samsung's smartphone shipments in the U.S. surged in the second quarter, boosting its market share from 23% to 31%. In contrast, Apple experienced a decline, with its market share dropping from 56% to 49%. Despite this shift, Apple continues to lead the U.S. smartphone market, capturing a majority of new smartphone sales. While Apple often claims second place globally, this recent decline signals a potential period of turbulence for the company, which has not faced such challenges in over a decade. Consequently, investors have reacted negatively, resulting in a 7.5% drop in Apple shares this year, making it one of the underperformers among major U.S. tech firms, apart from Tesla. Conversely, Samsung's stock has risen approximately 35% in 2025.
In its July earnings report, Apple announced a 13% year-over-year increase in iPhone sales. During the same month, Samsung unveiled innovative devices featuring foldable screens, including the Z Fold 7, which can transform into a tablet, and the Z Flip, which resembles a classic flip phone but is equipped with modern features. These new additions to Samsung's Galaxy brand, including the lightweight Galaxy S25 Edge, have gained significant traction on social media, especially following durability tests. A viral livestream showed one user bending the Z Fold 7 over 200,000 times, leading to over 15 million views on YouTube.
In the past month, Samsung's premium devices, particularly the Z Fold 7, generated over 50,000 mentions on social media, with 83% of those being positive or neutral, as reported by Sprout Social. The changing landscape of market share is not solely driven by consumer preferences; analysts suggest that tariffs and industry disruptions have also played a role, prompting smartphone manufacturers to adopt various strategies to mitigate impacts on their business. Additionally, Samsung's diverse product range allows it to cater to a broader audience, offering budget-friendly options alongside high-end devices that command premium prices.
Samsung's Galaxy and Z phone lineups span prices from $650 to $2,400, providing options for consumers at every price point. This extensive array of devices gives Samsung a competitive advantage over Apple, whose iPhone lineup has remained largely unchanged since 2017, primarily featuring rectangular designs with a touchscreen and multiple cameras. Currently, Apple's offerings range from $829 to $1,599, significantly limiting its market reach compared to Samsung's diverse selection.
As the smartphone market evolves, Apple is expected to adapt. Reports suggest that Apple may launch a slimmer iPhone in the near future, potentially competing directly with Samsung's Galaxy Edge. Loop Capital's managing director, John Donovan, indicated that Apple's 5.5mm Air model could significantly boost its market position, as testing suggests strong consumer interest in this new form factor. JPMorgan Chase analyst Samik Chatterjee has also indicated that Apple may introduce a folding phone next year, aiming to compete with Samsung's Z Fold. As attention turns to future launches, many anticipate that Apple will introduce its first foldable iPhone as part of the iPhone 18 lineup in September 2026.
Samsung's journey with folding phones began in 2019 but faced challenges in its early stages. Initial models encountered issues with durability, prompting delays in launch. However, Samsung asserts that the technology is now ready for the mainstream, particularly regarding the durability of its devices. Drew Blackard, vice president of mobile product management at Samsung Electronics America, stated that the latest Galaxy Z Fold 7 has seen a 25% increase in preorders compared to its predecessors, with sales outpacing the previous model by nearly 50%.
The rise of artificial intelligence is also influencing the smartphone landscape, potentially reshaping consumer electronics. For instance, OpenAI's acquisition of Jony Ive's startup aims to develop next-generation hardware, while other AI ventures are creating devices that rely on voice control. Samsung's devices, along with other Android phones, benefit from access to Google's Gemini AI model, which offers features that surpass Apple's Siri. Blackard noted that the larger displays of folding phones are particularly advantageous for AI applications, enhancing user productivity.
Despite concerns about potential delays in Apple's AI advancements, analysts believe that the company's brand loyalty will provide a buffer against significant customer defections to competitors. Chatterjee emphasized that Apple's strategy typically involves waiting until a technology is adequately developed before embracing it. As the market evolves, it appears that the time for foldable devices may have finally arrived. Apple has historically prioritized maturity over being first to market. The next few years will be critical in determining how Apple responds to Samsung's innovations and the overall shift in consumer preferences.
