Ryan Haines / Android Authority
TL;DR
- Finances smartphone gross sales plunged 20% year-on-year in This autumn 2024, dragging down the general US market regardless of an increase in premium cellphone gross sales.
- One purpose seems to be that buyers within the sub-$300 section are holding onto units longer, with fewer compelling upgrades and lingering financial stress.
- Gross sales of premium smartphones grew 4% in comparison with the identical interval in 2023, pushed by sturdy iPhone 16 and Pixel 9 gross sales.
US smartphone gross sales declined 3% year-over-year in This autumn 2024, however the largest shift wasn’t within the total market — it was within the funds cellphone section. Units priced underneath $600 noticed a pointy 20% drop in comparison with the identical interval final 12 months, signaling a significant shift in client shopping for habits.
In line with a Counterpoint Analysis report, the decline was notably extreme within the sub-$300 class, the place price-sensitive shoppers are feeling the consequences of financial stress regardless of broader indicators of restoration. With fewer compelling funds choices and little innovation in lower-end fashions, many shoppers opted to maintain their present telephones reasonably than improve.
Value-sensitive shoppers are feeling the consequences of financial stress.
In the meantime, premium smartphones noticed regular development. Gross sales of smartphones priced above $600 elevated by 4% in This autumn, with sturdy demand for high-end fashions just like the iPhone 16 collection, which noticed a slight 1% uptick over its predecessor. Google’s Pixel 9 lineup additionally carried out properly, benefiting from an expanded portfolio.
Carriers performed a task on this development by selling premium units via aggressive vacation offers, usually bundling smartphones with tablets, smartwatches, or broadband companies. Such offers are not often out there for mid-range and funds units
Analysts recommend that as extra shoppers shift towards premium units and maintain onto them longer, funds fashions might proceed to lose relevance. Carriers stay optimistic about 2025, anticipating smartphone gross sales to rebound as alternative cycles will doubtless see extra individuals upgrading.
