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Americans are buying fewer budget smartphones, and there may be good reasons why
US smartphone sales dipped in the last quarter of 2024, but the real collapse happened in the sub-$600 segment.
Credit: Ryan Haines / Android Authority
- Budget smartphone sales plunged 20% year-on-year in Q4 2024, dragging down the overall US market despite a rise in premium phone sales.
- One reason appears to be that consumers in the sub-$300 segment are holding onto devices longer, with fewer compelling upgrades and lingering economic pressure.
- Sales of premium smartphones grew 4% compared to the same period in 2023, driven by strong iPhone 16 and Pixel 9 sales.
US smartphone sales declined 3% year-over-year in Q4 2024, but the biggest shift wasn’t in the overall market — it was in the budget phone segment. Devices priced under $600 saw a sharp 20% drop compared to the same period last year, signaling a major shift in consumer buying habits.
According to a Counterpoint Research report, the decline was particularly severe in the sub-$300 category, where price-sensitive consumers are feeling the effects of economic pressure despite broader signs of recovery. With fewer compelling budget options and little innovation in lower-end models, many consumers opted to keep their existing phones rather than upgrade.
