Smartphone market faces rising costs as entry-level sales plunge

The global smartphone market is facing structural shifts due to rising costs for core components like memory and storage. In the United States, the entry-level smartphone segment (devices under $100) saw a significant 64% year-on-year decline in the second quarter of 2026, according to Counterpoint. Despite this downturn, Samsung and Motorola have increased their market shares in the U.S., with Samsung rising to 47% and Motorola to 32%.

While many manufacturers are raising prices for flagship models to offset component costs, Huawei has implemented a price reduction for its Mate X6 foldable smartphone. The company is offering discounts of up to 4,000 yuan, a move attributed to increased supply chain control and technological efficiencies in its proprietary hinge and architecture designs. This price adjustment occurs as other industry players, including Apple and vivo, face upward price pressure on their premium devices.