US smartphone sales fell by 5% YoY in Q2 2026 as memory price hikes and other macroeconomic factors weakened consumer demand, according to Counterpoint’s US Smartphone Channel Share Tracker Monthly Report. Consumers were hit on two fronts in the quarter. Price increases for gas and other goods due to conflicts in the Middle East affected purchasing power for smartphones and other electronics. Rising RAM demand from hyperscalers has also increased memory costs significantly for smartphone OEMs. This has disproportionately affected the low end of the smartphone market, where thinner margins have made the situation more difficult to navigate.

Cumulative sales for the Big Four OEMs in the US market (Apple, Samsung, Motorola, Google) fell 4% YoY in Q2 2026. The rest of the market fell by 45% as smaller manufacturers struggled to navigate component cost increases. The larger players have been able to use leverage of scale to acquire component inventory that smaller brands have been unable to access at justifiable costs. The tariff fears and weak prepaid market in 2025 had already driven several smaller brands to leave the US market or downsize their operations. The most notable of these was HMD, which exited the US market last year. Now the pricing crunch for memory and storage has further complicated business for a lot of smaller OEMs that sell devices at lower prices and lower margin.

Consequently, sub-$100 smartphone sales declined 64% YoY in Q2 2026 as OEMs either stopped shipping these devices or were forced to increase prices to offset increased memory costs. Carrier-branded white-label smartphones have faced some of the largest declines as price crunches have narrowed the price gap between white labels and the pricing that larger OEMs like Samsung and Motorola are able to provide.

Although prepaid sales in the US declined 11% YoY in Q2 2026, Samsung and Motorola increased their share of prepaid sales as they capitalized on weakness and market exits by other low-end OEMs during the pricing crunch. Carriers have leaned on Samsung’s Galaxy A Series and Motorola’s Moto G Series models to attract switchers in the changing prepaid market. Despite strong sales, Motorola increased prices for several G Series models in Q2 2026, and Samsung raised the price of the Galaxy A17 by $50 in July. These G Series price increases drove YoY sales growth in the $200-$300 price segment, which had previously been a pricing void in the US market. With Motorola’s top models now selling in this price range, this price segment tripled in market share YoY in Q2 2026.

US Prepaid Smartphone Sales Share by Brand, Q2 2025 vs Q2 2026

Note: Figures may not add up to 100% due to rounding.

We expect smartphone ASPs to continue to increase in Q3 2026, as Apple is expected to increase prices for its iPhone 18 series models. Given that Apple historically accounts for over 50% of smartphone sales in the third quarter, price increases for top models will have a large effect on smartphone ASPs. Sales strength will be dependent on how much the carriers are willing to subsidize these models. Apple is expected to have a strong upgrade cycle with users switching from the iPhone 15 series. If carriers can continue offering these models for free, or close to free despite the price increases, sales should remain strong. Google is also launching its Pixel 11 devices at higher price points than it launched the Pixel 10 series in August 2025.

With continued price increases across the market, prepaid sales are likely to continue consolidating around Motorola and Samsung as the margin crunch on other low-end OEMs continues to intensify.

About Counterpoint Research

Counterpoint Research is a global market research firm specializing in products across the technology ecosystem. We advise a diverse range of clients – from smartphone OEMs to chipmakers and channel players to Big Tech – through our offices located in the world's major innovation hubs, manufacturing clusters and commercial centers. Our analyst team, led by seasoned experts, engages with stakeholders across the enterprise – from the C-suite to professionals in strategy, analyst relations (AR), market intelligence (MI), business intelligence (BI), product and marketing – to deliver services spanning market data, industry thought leadership and consulting. Our core areas of coverage include AI, Automotive, Consumer Electronics, Displays, eSIM, IoT, Location Platforms, Macroeconomics, Manufacturing, Networks and Infrastructure, Semiconductors, Smartphones and Wearables. Visit our Insights page to explore our publicly available market data, insights and thought leadership, and to understand our focus, meet our analysts and start a conversation.

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