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US Smartphone Market Contracts as Sub-$100 Segment Collapses

Rising memory and component costs are driving up device prices and are likely to cut entry-level sales further in Q3.

Overview

  • Counterpoint Research’s Q2 2026 US data, published Thursday, shows smartphone shipments fell 5% year‑over‑year for April–June.
  • Memory and storage price increases driven by chip reallocation to data‑center demand and higher energy costs have raised bill‑of‑materials for low‑cost phones and reduced consumer buying power.
  • Sales of phones priced under $100 plunged about 64% year‑over‑year as many carrier/ODM budget models and smaller OEMs stopped shipping or exited the US market.
  • The largest brands held up better: Apple, Samsung, Motorola and Google saw their combined sales fall roughly 4% while remaining smaller brands dropped as much as about 45%.
  • Analysts expect average selling prices to rise in Q3 after Google raised Pixel 11 starting prices and with Apple widely expected to increase iPhone pricing, a shift that could push more consumers toward financing, trade‑ins or refurbished devices.