Rising memory costs have begun to significantly change the U.S. smartphone market. Sales of low-cost devices fell sharply in the second quarter of 2026, with smaller manufacturers taking a bigger hit than big brands, according to Counterpoint Research.
The combined sales of Apple, Samsung, Motorola and Google in the United States fell by 4% compared with the same period last year, while the sales of other companies fell by 45%. The sub-$100 smartphone market is in particular trouble: sales are down nearly 65%. The price difference between budget models from major brands and lesser-known devices has narrowed due to rising costs, allowing Samsung and Motorola to increase their market share in prepaid devices.
Apple is currently keeping iPhone prices unchanged in the United States, but with the release of the iPhone 18, prices are expected to rise. Analysts said this will significantly impact the average cost of smartphones in the third quarter, as Apple traditionally accounts for more than half of market sales during this period. Demand will largely depend on operators and their willingness to subsidize new models.