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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.
