Affordable phones vanish amid market crunch

The low-cost smartphone market in the United States is facing significant pressure due to rising memory chip prices, leading to a 64% decline in sales of phones priced under $100 in the second quarter of 2026. This increase in costs has forced companies to either raise their prices or cease production of their cheaper models, significantly reducing options for budget-conscious consumers. Memory and storage chips now constitute a larger portion of the costs for affordable phones, making it more difficult to maintain low prices as before. Overall market sales declined by 5%, with a substantial drop of 45% among small and specialized companies, while major players like Apple, Samsung, Motorola, and Google experienced a 4% decline.

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