US Budget Phone Market Collapses Amid Memory Chip Price Surge

The US budget phone market is experiencing a significant decline due to rising memory chip prices. According to Counterpoint Research, sales of sub-$100 smartphones in the US market fell by 64 percent year-over-year (YoY) in Q2, compared to the same period last year.

This drop occurred as smartphone makers cut shipments or raised prices to mitigate the rising costs of memory chips. The combined sales of top manufacturers Apple, Samsung, Motorola, and Google declined by 4 percent during the same period, while sales from all other brands dropped by 45 percent.

Samsung and Motorola capitalized on the slump of rival budget brands to expand their market shares. Samsung's share of the US prepaid smartphone market rose 9 percentage points from 38 percent in Q2 last year to 47 percent in Q2 this year, while Motorola grew 4 percentage points to reach 32 percent.