A new Counterpoint Research report says pricing pressure from rising memory costs squeezed the low-end US smartphone segment in Q2 2026, with smaller manufacturers hit particularly hard as larger brands were better able to absorb component cost increases. Here are the details.
Rising memory costs hit cheaper smartphones hardest
According to Counterpoint Research, combined US smartphone sales for Apple, Samsung, Motorola, and Google fell 4% year over year in Q2 2026, while sales across the rest of the market plunged 45% as smaller manufacturers struggled with rising component costs.
Counterpoint says that sub-$100 smartphone sales declined nearly 65% during Q2 2026 compared with the year-ago period, which in turn helped Samsung and Motorola grow their share of the prepaid market, as rising component costs narrowed the price gap between their entry-level devices and white-label smartphones.
When it comes to Apple, the report notes that while the company kept iPhone prices unchanged in the U.S. even as it raised prices for other products, Counterpoint expects the company “to increase prices for its iPhone 18 series models,” some of which are expected to be announced in just a few weeks.
