Global sub-$100 smartphone shipments fell 60% in Q2 2026
The number of smartphones under $100 shipped globally dropped sharply in mid-2026 due to rising memory costs. Chipmakers prioritized AI infrastructure components, making it harder for manufacturers to produce cheaper devices.
Memory prices surged in the second quarter of 2026, causing a drastic decline in the volume of smartphones priced below $100 shipped worldwide. According to data from IDC, shipments in this segment fell approximately 60% compared to the year prior. Last year, about 173 million units in the sub-$100 range were delivered globally. Memory now comprises nearly 60% of the bill of materials for smartphones under $200, per analysis by Omdia's Chow Sheng Win. Bryan Ma, Vice President of Client Device Research at IDC, noted that low-end phones are becoming uneconomical to manufacture because chipmakers are shifting focus toward higher-value products used in AI infrastructure. This shift has forced Chinese manufacturers to adjust their product lineups. Consequently, Xiaomi moved up-market; its share of global sub-$100 shipments in China dropped from 27.7% in the first half of 2025 to just 11.2% a year later. Counterpoint Research analyst Neil Shah estimates that Xiaomi's average selling price increased roughly 30% since 2023, reaching $197. Similarly, Oppo's average price climbed by about the same margin.
