Smartphones Under $600 See 20% Drop as Demand Shifts to Higher-End Devices

According to Counterpoint's US Smartphone Tracker, there was a 3% decline in US smartphone sales in Q4 2024 which was mostly due to low sales in the sub-$600 smartphones and devices priced below $300. However, a big reason for decline was also because of a 4% YoY increase in sales of smartphones above the $600 price segment because there was an increased demand for premium devices during holidays. Maurice Klaehne, Senior Research Analyst, said the US smartphone market was dominated by premium smartphones in Q4 2024 with iPhone 16 series seeing a 1% YoY increase in its sales as compared to the series like iPhone 15. Consumers are opting to upgrade to premium and expensive smartphones as well.


Google also saw a good performance in Q4 2024, mostly due to the Pixel 9 lineup which saw double digit growth. Almost a year after the launch of GenAI smartphones in the US, demand remains muted. However, it is expected to grow with the release of second-generation AI-powered devices like the S25. The sub-$600 smartphone market saw a 20% YoY decline because of the low end market and weaker demand, especially for devices under $300. Consumers in this segment are more price-sensitive and have not benefited from the broader macroeconomic recovery in terms of job and wage growth..
Research Director of Counterpoint, Jeff Fieldhack said that carriers strongly impacted Q4 2024 by offering promotions like bundles with tablets, watches or broadband services. This helped them in increased upgrade rates and equipment revenues as consumers opted for high priced devices. But channels like prepaid and Lifeline saw decline but carriers are still optimistic about growth in 2025, especially Verizon with unique promotion strategies. With replacement cycles peaking in 2024, carriers expect higher smartphone sales in 2025 as more consumers move past their contract periods and look to upgrade.

Read next:

• Study Reveals Students Turn to AI Chatbots for Emotional Support Amid Rising Loneliness

• Are GPT-2’s Impressive Download Numbers a Sign That Older Models Still Have Market Power?
Previous Post Next Post