Apple and Samsung are once again locked in a fierce battle for dominance in the U.S. smartphone market, and the competition, just like a decade ago, all comes down to the screen.
Back in 2014, Samsung was leading the charge with large-screen phones, forcing Apple to finally break from its tradition of smaller devices with the launch of the iPhone 6. The iPhone ultimately won that round. But now, recent sales data suggests the fight is back on.
According to data from Canalys, Samsung’s shipments in the U.S. surged in the second quarter, grabbing a 31% market share, up from 23%. Meanwhile, Apple’s share dipped to 49% from 56%. While Apple still holds the majority of the U.S. market, this is the first real sign of turbulence for the company in over a decade. This recent shift is one of the reasons Apple’s stock is down 7.5% this year, underperforming all other U.S. megacap tech companies except Tesla.
The Rise of the Foldable Phone
Samsung is making its move with new, innovative devices. The company recently introduced two phones with foldable screens: the Z Fold 7, which turns into a tablet, and the Z Flip, a modern take on the classic flip phone. These new devices are generating a lot of buzz on social media, especially with viral durability tests. One livestream showed a user bending the Z Fold 7 over 200,000 times, and clips of the video have been viewed millions of times.
This isn’t just about cool new gadgets, though. It’s a strategic move to offer a wider range of products. Samsung’s phone lineup now stretches from affordable options to high-end devices that cost more than any individual iPhone. As Canalys analyst Runar Bjorhovde puts it, Samsung is trying to “target people at every single price point.” This range includes the new, premium foldable phones, which are finally reaching a point of maturity.
Samsung’s initial foray into foldable phones in 2019 was a bit rocky, but the company says this time is different. Drew Blackard, a vice president at Samsung Electronics America, states there are “no longer trade-offs towards owning a foldable device.” Samsung isn’t sharing exact sales numbers, but Blackard noted that pre-orders for the new Galaxy Z Fold 7 were 25% higher than any previous folding phone.
Apple’s Turn to Innovate
For years, the iPhone has maintained a consistent, rectangular “candy bar” shape. But as Samsung experiments with new designs, Apple is expected to follow suit. Industry analysts suggest Apple will soon release a slimmer iPhone to compete with Samsung’s new Galaxy Edge. There’s also speculation that Apple might release its first foldable iPhone in 2026 as part of its iPhone 18 lineup.
These new form factors could allow Apple to sell devices at even higher price points. The new Samsung Galaxy Z Fold 7, for example, starts at $1,999, a price point analysts believe an Apple foldable could also command.
The competition is also heating up in the artificial intelligence (AI) space. While Apple is betting on its own AI features, Samsung and other Android phones have access to Google’s Gemini, which is seen by many as one of the best AI models available. Samsung’s Drew Blackard points out that the larger screens on foldable phones are particularly well-suited for AI features like Google’s “circle-to-search,” which allows users to see both their original content and supplemental information at the same time.
For years, investors have worried that Apple’s slower pace on AI could hurt sales, but many analysts believe the company’s strong brand loyalty will give it plenty of time to catch up. After all, Apple has never been about being first to market; its strategy is to wait until a technology is ready for the mainstream before fully embracing it. And with foldable phones, that time might finally be here.