U.S. Smartphone Sales Down 5%, Low-End Phone Sales Down 64%

U.S. smartphone sales decreased by 5% in the second quarter of 2026 compared to the same period last year. Sales of products priced under $100 fell by 64% due to rising memory prices and inflationary pressures. According to market research firm Counterpoint Research, sales from the top four companies—Apple, Samsung, Motorola, and Google—declined by 4%, while sales from other manufacturers dropped by 45%. The demand for low-end products has notably weakened, with smartphone sales under $100 down by 64% and prepaid phone sales also decreasing by 11%. It is analyzed that manufacturers have reduced the supply of low-cost products or reflected the cost increases in their prices. Samsung and Motorola have increased their market share in the prepaid phone market, with Samsung's share rising from 38% to 47% and Motorola's from 28% to 32%. Due to price increases, sales of smartphones priced between $200 and $299 surged by 200%. The rise in memory costs is exacerbating cost pressures, and companies with a high proportion of low-margin products are finding it harder to offer discounts. Counterpoint Research has suggested the possibility of price increases for Apple's iPhone 18 series and Google's Pixel 11 series in the third quarter.

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