Budget smartphones collapse: sub-$100 US sales down 64% year-on-year

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Counterpoint’s Q2 2026 US smartphone sales figures reveal a 5% year-over-year decline, largely driven by rising component costs.

Meanwhile, the sub-$100 smartphone segment has reportedly seen a sales dip of 64% YoY in the US.

The research firm forecasts the average selling prices of future smartphones to go up, with the Pixel 11 already starting that trend, and Apple’s upcoming iPhone 18 lineup expected to continue it.

The global energy price hikes precipitated by the Middle East conflict have impacted the purchasing power of many consumers. This is on top of the ongoing RAM shortage , which has raised component costs and left smartphone makers scrambling to secure more units. A combination of these factors has led manufacturers to either raise prices or shut up shop entirely. Some of these realities are now being reflected in a new quarterly sales report.

Counterpoint Research’s Q2 smartphone sales report shows a 5% YoY decline in US sales. Similarly, sales of Apple, Google, Motorola, and Samsung phones fell 4% in Q2 2026 compared to the same period last year. The impact of the financial crunch has been particularly harsh on the rest of the market, which has collectively witnessed a 45% YoY sales reduction in the US.