According to Counterpoint Research, sales of smartphones priced under $100 in the US fell by 64% in the second quarter of 2026 compared to the same period last year. This reflects a significant shift in market structure, with manufacturers either raising prices or discontinuing their cheapest models.
Market Dynamics by Segment:
Overall US smartphone market: declined 5% quarter-on-quarter.
Major brands (Apple, Samsung, Motorola, Google): sales declined by approximately 4%.
Other manufacturers: declined 45%, particularly affecting smaller companies focused on the budget segment.
Prepaid device segment: declined 11%.
Key Player Positions:
Samsung's share increased to 47%.
Motorola's share increased to 32%.
Carriers are increasingly promoting the Galaxy A and Moto G series due to the reduction in the number of offerings in the lower price segment. The main reasons for the decline are:
Rising DRAM and flash memory costs. In budget smartphones, these components account for a significant portion of the cost, making it difficult for manufacturers to maintain current prices.
Tariff uncertainty. This poses additional risks to supply chain planning and pricing.
Problems with the prepaid market. This increases pressure on brands whose business models were built around low-cost devices and carrier contracts.
Analysts do not rule out that similar trends could spread to other markets, including Russia, if rising component costs continue and alternative cost optimization methods are not found.
For the industry, this case demonstrates how changing prices for basic components (memory and storage) directly impact device availability and the competitive structure: large players can reallocate resources and maintain market share, while smaller manufacturers are particularly vulnerable.
