Cheap smartphones are dying due to memory shortage—US sales of sub-$100 devices plummet 64%

The difficult geopolitical situation around the world and the global shortage of electronic components have had a significant impact on the smartphone market. Analysts estimate that sales of smartphones under $100 in the U.S. will drop 64% annually counterpoint study.

At the end of the second quarter, overall U.S. smartphone sales fell 5% compared with the same period last year. In the past quarter, device sales of popular US brands Apple, Google, Motorola and Samsung fell by 4% compared with the same period last year. The ultra-budget smartphone market priced under $100 has been hardest hit by the crisis, with sales falling 64%. Counterpoint explains that some manufacturers are either raising prices or exiting the segment entirely.

Budget devices sold by U.S. carriers on prepaid plans have begun to lose ground as carriers raise prices, and the cost gap compared with products from Samsung and Motorola is narrowing. Although the overall segment fell by 11% in the second quarter, the two brands increased their market share in the budget devices sold with prepaid tariffs.

Image source: counterpointresearch.com

Operators are starting to offer models in the mid-to-low price range such as Samsung Galaxy A and Motorola Moto G more frequently. However, the market share of devices in the $200 to $300 segment tripled year over year during the reporting period. This is mainly due to the increased price of Motorola’s mid-range devices moving here.

Counterpoint analysts predict that the average selling price (ASP) of new smartphones will rise next quarter. This trend is already starting to show: the price of all variants of the new Google Pixel 11 series of smartphones has increased by $100 compared to last year; Samsung has increased the price of the new Galaxy Z Fold8 Ultra; Apple has the same expectations and is likely to launch the iPhone 18 series in September.