Smartphones priced under $100 are likely to become increasingly uncommon.
Memory prices are subtly transforming the entire smartphone industry.
If you’ve been waiting for an affordable phone deal, it may be a good time to act quickly. Recent data from Counterpoint Research indicates that smartphone sales priced under $100 in the US plummeted by an astonishing 64% year-over-year in the second quarter of 2026. Overall smartphone sales also dipped by 5% as rising costs are placing pressure on both consumers and manufacturers simultaneously.
What is causing the decline of budget phones?
Two distinct factors are converging here. Increasing prices for gas and goods, partly due to conflicts in the Middle East, have already impacted consumers' spending power on electronics. Simultaneously, memory chip prices have surged significantly, mainly because large tech firms are purchasing substantial amounts of RAM for their AI infrastructure.
This situation has significantly affected budget smartphones, as manufacturers are left with the choice of either raising prices to offset costs or discontinuing low-cost models. Carrier-branded white-label phones, the generic budget devices sold directly through carriers, have particularly suffered from these price hikes.
Who benefits and who suffers from this change?
Larger phone manufacturers are managing this situation much better than smaller ones. Joint sales for Apple, Samsung, Motorola, and Google decreased by only 4%, while all other brands saw a substantial drop of 45%. Smaller companies cannot procure components in bulk like the major players can.
HMD, the company behind Nokia phones, completely exited the US market last year. Meanwhile, Motorola raised prices on its well-liked budget models, and Samsung followed suit, which ironically led to the $200 to $299 price segment nearly tripling in market share.
We can also anticipate further price increases, as Apple is projected to hike iPhone 18 prices this fall, and Google’s new Pixel 11 already comes with a higher price tag than last year’s version.
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Smartphones priced under $100 are likely to become increasingly uncommon.
Budget smartphones are quickly disappearing, with sales of phones priced under $100 plummeting 64% year over year, while larger brands like Apple and Samsung have remained fairly steady.
