Report: US smartphone sales fell 5% in Q2 2026 as prices keep climbing

A new report from Counterpoint Research indicates that US smartphone sales fell 5% in Q2 2026, primarily due to rising memory costs and prices. The decline was more pronounced in the low-end segment, especially for smaller manufacturers who were less equipped to absorb the increased component costs. In Q2 2026, combined sales of Apple, Samsung, Motorola, and Google declined by 4% year-over-year, while overall US smartphone sales dropped by 45% as smaller manufacturers struggled.

Sub-$100 smartphone sales plummeted nearly 65% in Q2 2026 compared to the previous year, which aided Samsung and Motorola in expanding their share of the prepaid market. As component costs narrowed the price gap between their entry-level devices and white-label smartphones, the two brands benefited from increased sales.

Apple, however, kept its iPhone prices unchanged in the U.S., unlike other products. However, Counterpoint Research predicts that Apple will raise prices for its iPhone 18 series models, which are expected to be announced within a few weeks. With Apple historically accounting for over 50% of smartphone sales in Q3, price increases for top models are expected to significantly impact smartphone ASPs. Additionally, Apple's upgrade cycle is anticipated to be strong, with users switching from the iPhone 15 series.

Analyst Jeff Pu recently forecasted that the iPhone 18 Pro will cost between $1,349 and $1,399, while the iPhone 18 Pro Max will range between $1,449 and $1,499. Starting at around $2,500, Apple's iPhone Ultra has also been a subject of discussion. Despite the price hikes, analyst Jeff Pu expects Apple to maintain strong sales if carriers continue subsidizing the models for free or nearly free.

Apple reported a 22% increase in iPhone revenue at $54.2 billion during its Q3 2026 earnings, but warned that memory costs and supply constraints would worsen significantly in the September quarter, particularly for the iPhone, iPad, and Mac.