Apple Bucks Smartphone Chip Slump Amid iPhone 17 Pro Demand
Apple Inc. (NASDAQ:AAPL) managed to buck the trend in the global smartphone chipset market during the second quarter, thanks to strong demand for its iPhone 17 Pro models.
According to a report by Counterpoint Research, Apple's chipset shipments increased slightly year over year in the second quarter, driven by sales of the A19-series. The research firm expects A19-series shipments to exceed those of its predecessor, citing stronger iPhone 17 demand compared with the iPhone 16 lineup and solid Pro-model sales across regions.
Apple captured 19% of the smartphone chipset market in the second quarter, followed closely by MediaTek at 31%, and Qualcomm at 23%. However, both MediaTek and Qualcomm faced pressure from weaker shipments and a persistent memory shortage. Qualcomm's shipments declined year over year, while MediaTek also posted a year-over-year shipment decline.
The broader smartphone semiconductor market remained under pressure, with global smartphone shipments falling 21% year over year in the second quarter, primarily due to higher memory costs and cautious inventory management. MediaTek and Qualcomm shipments each dropped by more than 30%.