Smartphones under $100 are about to become a rarity
Budget smartphones are vanishing fast, as sub $100 phone sales collapsed 64% year over year while bigger brands like Apple and Samsung stayed relatively stable.
Smartphones priced under $100 are poised to become scarce in the United States, according to new data from Counterpoint Research. In the second quarter of 2026, sales of budget phones dropped by a remarkable 64% compared to the previous year, while overall smartphone sales declined by 5%. This downturn is driven by two forces: increasing gas and goods prices due to Middle East conflicts, and a sharp rise in memory chip costs, particularly for AI infrastructure.
The most affected are carrier-branded budget phones, which have seen a 45% year-over-year decline in sales, compared to a 4% drop for major brands like Apple, Samsung, Motorola, and Google. The reduced competitiveness leaves smaller manufacturers struggling to afford components in bulk, with some exiting the US market entirely. Larger companies like Apple and Samsung are faring better due to their ability to buy components in larger quantities.
As Apple prepares to increase iPhone 18 prices and Google's Pixel 11 becomes pricier, consumers can anticipate further price hikes. Apple's iPhone 18 may receive a significant memory upgrade, potentially addressing one of its limitations. Meanwhile, companies like Honor are introducing innovative concepts like the Robot Phone, showcasing different approaches to flagship smartphones.
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