Smartphones priced under $100 are soon expected to be uncommon.

      Memory prices are subtly transforming the entire smartphone landscape.

      If you've been waiting for an affordable phone deal, you may want to act quickly. Recent data from Counterpoint Research indicates that smartphone sales in the US priced under $100 plummeted by an astonishing 64% year over year in the second quarter of 2026. Additionally, overall smartphone sales dropped by 5% as rising costs put pressure on both consumers and manufacturers.

      What’s causing the decline of budget phones?

      Two distinct forces are at play here. The increase in gas and goods prices, partly due to conflicts in the Middle East, has already impacted consumer spending on electronics. Simultaneously, memory chip prices have surged significantly, mainly because large tech companies are purchasing vast amounts of RAM for their AI infrastructure requirements.

      Budget smartphones have been the most affected by this situation, as manufacturers either increase prices to offset costs or discontinue low-cost models altogether. Carrier-branded white-label phones, the standard budget devices sold directly through carriers, have faced particularly severe impacts from these price hikes.

      Who benefits and who suffers in this transition?

      Larger smartphone manufacturers are managing this situation much better than smaller ones. The combined sales of Apple, Samsung, Motorola, and Google decreased by only 4%, while all other brands combined experienced a staggering decline of 45%. Smaller companies simply don't have the ability to purchase components in bulk like the industry giants.

      HMD, the company behind Nokia phones, entirely exited the US market last year. In the meantime, Motorola has increased prices for its popular budget models, and Samsung has followed suit, resulting in the $200 to $299 price bracket nearly tripling its market share.

      We might see prices continue to rise, especially with Apple expected to increase iPhone 18 prices this fall, and Google’s new Pixel 11 already priced higher than last year's version.

      Manisha Priyadarshini is a tech and entertainment writer with over nine years of editorial experience.

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