Here’s proof that high component costs are killing cheap phones
The global price crunch has impacted US smartphone sales, with the sub-$100 segment seeing a 64% YoY decline.
Counterpoint's latest Q2 2026 US smartphone sales figures indicate a 5% year-over-year decline in sales, primarily attributed to escalating component costs. Simultaneously, the sub-$100 smartphone segment in the US has reportedly seen a 64% year-over-year sales drop. Research firm Counterpoint predicts that future smartphone average selling prices will rise, with the Pixel 11 already signaling this trend, and Apple's upcoming iPhone 18 line expected to follow suit.
The surge in global energy prices, triggered by the Middle East conflict, has further strained consumer purchasing power. This, coupled with the ongoing RAM shortage, has driven up component costs and left smartphone manufacturers scrambling to secure sufficient units. As a result, some companies have been forced to raise prices or cease operations altogether.
These challenges are now evident in a new quarterly sales report. Counterpoint Research's Q2 smartphone sales report reveals a 5% year-over-year decline in US sales. Similarly, Apple, Google, Motorola, and Samsung experienced a 4% sales decline in Q2 2026 compared to the same period last year. The financial crunch has hit the rest of the market particularly hard, with a collective 45% year-over-year sales reduction in the US.
Written by urgent.news from Android Authority's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
