The latest report from Counterpoint Research reveals a worrying trend in the U.S. smartphone market, with sales experiencing a 5% decline in the second quarter of 2023 (April 1 – June 30). This downturn is attributed to a combination of factors including the ongoing memory chip crisis, which has resulted in increased average selling prices (ASP) for smartphones, and rising gas prices triggered by geopolitical tensions. These developments have, unfortunately, strained consumers' purchasing power.
The leading manufacturers—Apple, Samsung, Motorola, and Google—reported a collective sales drop of 4% year-over-year. In stark contrast, smaller brands faced dire circumstances, with some experiencing sales declines as severe as 45% compared to Q2 of the previous year.
The sub-$100 segment witnessed a staggering 64% decline in phone sales, primarily due to smaller original equipment manufacturers (OEMs) struggling to cope with escalating component costs. Devices offered by original design manufacturers (ODMs), often marketed through carriers, are among those suffering the most as they find it challenging to compete with larger, more established brands like Samsung and Motorola.
Despite the overall market contraction, Samsung and Motorola managed to gain ground in the prepaid smartphone market. Notably, Samsung’s Galaxy A-series and Motorola’s Moto G lineup have emerged as key players across various carriers.
Looking ahead, analysts at Counterpoint predict that ASPs will persist in their upward trend during the third quarter. With Google announcing a $100 price increase for its forthcoming Pixel 11 series and Apple expected to follow suit with the iPhone 18 Pro series, the outlook for smartphone shipments in the U.S. remains bleak, casting further shadow over the market's recovery prospects.
Source
