A new Counterpoint Research report says pricing pressure from rising memory costs squeezed the low-end US smartphone segment in Q2 2026, with smaller manufacturers hit particularly hard. Combined sales for Apple, Samsung, Motorola, and Google fell 4% year-over-year, while sales across the rest of the market plunged 45%. Sub-$100 smartphone sales declined nearly 65%.

Counterpoint notes that rising component costs narrowed the price gap between entry-level devices and white-label smartphones, helping Samsung and Motorola grow their prepaid share. Apple kept iPhone prices unchanged but is expected to raise prices for the iPhone 18 series, with some models rumored at $1,349–$1,499 and the iPhone Ultra near $2,500.

Apple’s Q3 2026 iPhone revenue was up 22% at $54.2 billion, but the company warned memory costs and supply constraints will worsen in the September quarter. Sales strength will depend on carrier subsidies for the upcoming models.