• US smartphone sales declined 3% YoY in Q4 2024 due to weak low-end smartphone sales.
• Sales for $600 and above smartphones increased 4% YoY due to the growing premiumization trend in the market.
• iPhone 16 series sales rose 1% YoY compared to iPhone 15 from launch date till the end of the first year of sales.
• The sub-$300 price band remains very weak and a drag on overall US volumes.

Boston, Fort Collins, Buenos Aires, London, New Delhi, Beijing, Hong Kong, Taipei, Seoul, Tokyo – January 31, 2025

US smartphone market sales declined 3% YoY in Q4 2024, despite carriers reporting a reprieve in upgrade rates for the quarter, according to Counterpoint’s Monthly US Channel Share Smartphone Tracker. The decline in sales volume was due to lower sales in the sub-$600 segment, especially for devices priced below $300. However, further decline in the overall US market was limited by a 4% YoY increase in sales in the $600 and above price band, which was fuelled by increased demand for premium smartphones during the holiday quarter.

Commenting on the market’s price band dynamics, Senior Research Analyst Maurice Klaehne said, “The US market is generally more driven by the premium smartphone segment during the final quarter of the year. We saw sales in the $600 and above segment rise 4% YoY in Q4 2024. iPhone 16 series sales rose 1% YoY from its launch date till the end of the first year of sales, compared with that of the iPhone 15 series. The ongoing premiumization trend is driving consumers to buy more expensive smartphones when upgrading their devices. Google sales rose by double-digit percentages as the Pixel 9’s expanded portfolio resonated well with consumers. Almost a year into the launch of GenAI devices in the US market, we believe that GenAI-driven demand remains muted. With the advent of second gen GenAI smartphone such as the S25, we expect demand to increase as GenAI use cases become more mature and we move towards AI agents.”

Klaehne added, “The sub-$600 smartphone market declined 20% YoY because of low-end consolidation in the market and weaker demand for devices, especially in the sub-$300 segment. Consumers are more price-sensitive in this segment and have not experienced the macroeconomic recovery the US has otherwise witnessed in terms of job and wage growth.”

Commenting on the market’s carrier dynamics, Research Director Jeff Fieldhack said, “Carriers have done a tremendous job in pushing promotions in Q4 2024, especially bundles with watches and tablets or with broadband services. Both upgrade rates and equipment revenues improved in the quarter as subscribers purchased higher ASP devices but also saw impacts of lower sales in channels like Lifeline and prepaid. However, carriers are somewhat optimistic about 2025 sales growth, this is especially true for those who run differentiated promotional cycles, such as Verizon. This will likely lead to increases in device sales as subscribers move past their contract periods and as replacement cycles have peaked in 2024.”

Background
Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects, and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.