Ryan Haines / Android Authority
TL;DR
- 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.
Price-sensitive consumers are feeling the effects of economic pressure.
Meanwhile, premium smartphones saw steady growth. Sales of smartphones priced above $600 increased by 4% in Q4, with strong demand for high-end models like the iPhone 16 series, which saw a slight 1% uptick over its predecessor. Google’s Pixel 9 lineup also performed well, benefiting from an expanded portfolio.
Carriers played a role in this trend by promoting premium devices through aggressive holiday deals, often bundling smartphones with tablets, smartwatches, or broadband services. Such deals are rarely available for mid-range and budget devices
Analysts suggest that as more consumers shift toward premium devices and hold onto them longer, budget models could continue to lose relevance. Carriers remain optimistic about 2025, expecting smartphone sales to rebound as replacement cycles will likely see more people upgrading.
