The latest analysis from Counterpoint Research highlights a troubling trend in the US smartphone market during the second quarter of 2023 (April 1 - June 30). The market has contracted by 5% year-over-year due to ongoing challenges such as a memory chip crisis that has driven up average selling prices (ASP). Additionally, escalating gas prices linked to geopolitical tensions have further strained consumer purchasing power.
The combined sales figures of major brands like Apple, Samsung, Motorola, and Google show a 4% decline compared to the previous year. In stark contrast, other brands have faced even steeper sales drops, some up to 45% from Q2 2025.
Particularly alarming is the 64% drop in sales of smartphones priced under $100, as smaller original equipment manufacturers (OEMs) are struggling to cope with rising component costs. This trend has disproportionately affected private-label devices common in carrier offerings, which are unable to compete effectively with larger brands such as Samsung and Motorola.
Notably, Samsung and Motorola have managed to increase their market share in the prepaid smartphone category, with Samsung's Galaxy A-series and Motorola's Moto G line registering significant performance across various carriers.
The future does not appear bright, with analysts from Counterpoint forecasting that ASPs will continue to rise in the upcoming quarter. Following Google’s decision to elevate the starting prices of its Pixel 11 series by $100, it is anticipated that Apple will also increase prices for its upcoming iPhone 18 Pro models. As a result, shipments in the US smartphone market are expected to persist in their downward trajectory.
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