Updated
Updated · Android Authority · Aug 13
US Smartphone Sales Fall 5% in Q2 as Sub-$100 Segment Craters 64%
Updated
Updated · Android Authority · Aug 13

US Smartphone Sales Fall 5% in Q2 as Sub-$100 Segment Craters 64%

3 articles · Updated · Android Authority · Aug 13

Summary

  • Counterpoint said US smartphone sales dropped 5% year over year in Q2 2026, with prepaid sales down 11% and the sub-$100 segment plunging 64%.
  • Rising component costs, a RAM shortage and energy-driven pressure on household budgets pushed vendors to raise prices or exit cheaper tiers, shrinking the gap between carrier-branded phones and Samsung or Motorola models.
  • Apple, Samsung, Google and Motorola sales fell 4%, while the rest of the market slumped 45% as smaller brands lost share or left the low-end segment altogether.
  • The market is shifting upward: the $200-$300 band tripled its share, helped by Motorola price increases, and carriers leaned more on Samsung Galaxy A and Motorola Moto G devices.
  • Price pressure is expected to persist into Q3, with Google already lifting Pixel 11 prices by $100 and Apple's iPhone 18 lineup widely expected to follow.

Insights

With Apple poised to hike iPhone 18 prices, can aggressive carrier subsidies truly shield consumers from the escalating global component crisis?
As AI drains global memory supplies, will the death of the sub-$100 smartphone force budget buyers into the refurbished market forever?
Will the AI-driven memory shortage completely wipe out smaller smartphone brands, leaving consumers at the mercy of a tech oligopoly?