Budget Phone Shipments Plunge

Shipments of smartphones priced below $100 plunged nearly 60% as rising memory costs push manufacturers toward more expensive devices.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Low-cost smartphones are becoming harder to produce as rising memory prices squeeze manufacturers, according to CNBC.

00:10Global shipments of smartphones priced below $100 fell nearly 60% year-over-year in the second quarter of 2026.

00:19Xiaomi's share of sub-$100 shipments fell from 27.7% in the first half of 2025 to 11

00:26.2% a year later.

00:28Memory now accounts for almost 60% of the bill of materials for smartphones priced below $200.

00:35Chinese manufacturers are responding by cutting cheaper models and moving toward higher-priced devices.

00:40Xiaomi's average selling price has risen about 30% since 2023 to $197, while Oppos climbed by a similar amount

00:49to $300.

00:50Industry analysts said prices are unlikely to return to 2024 or early to 2025 levels.

00:58For all things money, visit Benzinga.com.