There Is Incredible News for Apple Investors. Will It Be Enough to Send the Stock Higher?

By Harsh Chauhan – Apr 18, 2026 at 11:41AM ESTKey PointsIn the first quarter, iPhone shipments increased despite a dip in overall smartphone shipments.Apple could further boost its smartphone market share by adding new AI features.The company's control over the supply chain should ensure it continues to outperform its peers.Apple's (AAPL +2.65%) share price has been somewhat volatile but essentially flat (down 0.6%) so far in 2026. The tech giant's tepid returns can be attributed to the broader negativity about tech stocks amid the ongoing crisis in the Middle East. However, there was some good news in store for shareholders from Counterpoint Research, a market research firm. Apple emerged as the top player in the global smartphone market in the first quarter of 2026. But what's impressive is that it's the only one among the top five smartphone manufacturers to record growth during the quarter. Let's see why Apple's calendar Q1 sales performance is a big deal. Image source: The Motley Fool. The smartphone market shrank in Q1, but Apple defied the trend Counterpoint notes that overall smartphone sales dropped by 6% year over year in Q1. Samsung, Xiaomi, Oppo, and Vivo all had shipments decline from the year-ago period. Apple, however, managed to increase its shipments by 5%.

The Magnificent Seven company ended calendar Q1 with a 21% market share, becoming the top smartphone vendor during the quarter. ExpandNASDAQ: AAPLAppleToday's Change(2.65%) $6.97Current Price$270.37Key Data PointsMarket Cap$3.9TDay's Range$266.75 - $272.3052wk Range$189.81 - $288.62Volume2.1MAvg Vol47MGross Margin47.33%Dividend Yield0.38% Counterpoint attributes this strong showing to the robust demand for iPhones in India, China, and Japan. The firm also says that Apple's aggressive trade-in programs are driving resilient sales growth even in an unfavorable macroeconomic environment. Clearly, the Apple brand is resonating with customers, even though critics point out that it has fallen behind rivals in the generative-AI smartphone race. However, the company is reportedly working to integrate more AI features into its devices with help from Alphabet's Google. As reported by technology news site The Information, Apple could use Google's Gemini AI model to create smaller AI models that will run locally on its own devices. Such features could make Apple's iPhones and other devices more attractive to users, which could keep iPhone sales strong. Dan Ives of Wedbush Securities says that around 315 million iPhones were at least four years old when the iPhone 17 series was rolled out last year. The huge number of iPhones in an upgrade window should drive strong replacement demand and help Apple outperform the broader smartphone market. It's worth noting that the global smartphone market has been hamstrung by the high prices of memory chips, but Apple has been quick to secure supply in a bid to maintain market share. This strategy should ideally pay off in the long run, as Apple has a solid opportunity to monetize its AI offerings. That could mitigate any margin-related sacrifices it makes to maintain its smartphone dominance by securing costly components. Will strong sales translate into more upside? Apple's earnings are expected to increase by a healthy 14% in the current fiscal year to $8.51 per share, according to consensus estimates. Analysts believe this strong double-digit growth will be a tailwind for the stock, as evidenced by its 12-month median price target of $307.50, which suggests a 15% jump from current levels. Apple seems well-positioned to gain market share, which should boost investor confidence in this tech stock and help it achieve the double-digit gains analysts expect in the coming year.Read NextApr 18, 2026 •By Chris NeigerApple's Smart Glasses Could Launch in 2027. Here's Why Apple Could Succeed Where Others Have Failed.Apr 17, 2026 •By Danny Vena, CPAApple Continues to Gain Market Share in China. Here's What It Means for Investors.Apr 17, 2026 •By Matt Frankel, CFP10 Best Low-Cost Index Funds to Buy in 2026Apr 17, 2026 •By Matt Frankel, CFPS&P 500 Explained: How the Index Works and How to Invest in ItApr 17, 2026 •By Danny Vena, CPAWhy Apple Stock Popped Friday MorningApr 17, 2026 •By Rachel WarrenBest Microchip Stocks to Buy in 2026 and How to Invest in ThemAbout the AuthorHarsh Chauhan is a contributing Motley Fool technology analyst covering semiconductors, consumer electronics, artificial intelligence, and software. Harsh previously worked as a journalist for CCN Markets covering crypto and macroeconomics, a contributor at Capital 10x covering metals, mining, and industrial stocks, and a research associate at Zacks Investment Research. He holds a bachelor’s degree in commerce from St. Xavier’s College in Kolkata, India.TMFTechJunk13X@techjunk13Stocks MentionedAppleNASDAQ: AAPL$270.37(+2.65%)+$6.97*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.