US Smartphone Sales Fell 5% in Q2 as Memory Costs Squeezed Low-End Market

U.S. smartphone sales fell 5% year over year in the second quarter of 2026 as memory price hikes and broader economic pressures weakened demand, according to Counterpoint Research. Smaller smartphone makers were hit hardest, while Apple, Samsung, Motorola, and Google were better able to leverage their scale to manage rising component costs.



Combined sales for Apple, Samsung, Motorola, and Google were down 4% year over year, while the rest of the market dropped 45%. At the low end, sub-$100 smartphones declined 64% as OEMs either stopped shipping those devices or raised prices to offset higher memory and storage costs. Although prepaid sales fell 11%, Samsung and Motorola increased their share of the segment as carriers leaned on Galaxy A and Moto G models to attract switchers while smaller rivals exited or downsized.


Motorola raised prices on several Moto G models during the quarter, helping the $200-$299 price segment roughly triple its market share from a year earlier. Samsung followed with a $50 increase for the Galaxy A17 in July.

Counterpoint expects industry average selling prices to continue climbing in Q3 2026, with Apple expected to raise prices across the iPhone 18 lineup. Google is also launching its Pixel 11 devices at higher price points than the Pixel 10 lineup, adding further upward pressure to industry ASPs. Because Apple historically accounts for more than half of U.S. smartphone sales during the third quarter, higher iPhone prices are expected to have an outsized impact on industry ASPs. The report also expects Apple to benefit from a strong upgrade cycle among iPhone 15 users, though sales strength will depend on whether carriers continue offering the new models free or close to free through subsidies.

Apple recently reported iPhone revenue of $54.2 billion for its fiscal third quarter, up 22% year over year. The company also warned that memory costs and supply constraints would worsen significantly in the September quarter and has already raised prices on other product lines in response to the global memory shortage.