The era of affordable smartphones is ending, prices expected to rise

25 September 2026, 23:00·23·Technology

Significant structural changes are expected in the global smartphone market in the coming years. According to ixbt.com, while total sales volume is expected to remain at current levels, the number of the most affordable devices will decrease sharply. This is reported by Ixbt.com .

According to forecasts by Counterpoint Research analysts, by 2030, sales of smartphones priced under $200 will decrease by approximately 40 percent compared to 2025. In absolute terms, this means a reduction of more than 230 million budget devices per year.

Nevertheless, experts do not expect the entire market to collapse. By the end of the decade, global sales volume is expected to remain at around 1.2 billion devices per year.

Main reasons for price increases

The rising cost of components is cited as the main reason for the contraction of the budget segment. In particular, memory and CPUs, which make up a significant portion of the cost of cheap smartphones, are becoming more expensive.

For manufacturers operating with minimal profit margins, keeping the retail price below $200 is becoming increasingly difficult. Furthermore, the requirements for modern devices are also rising.

Today, consumers expect even the cheapest models to support 5G networks, have sufficient RAM, high-quality cameras, and AI features. Implementing these capabilities increases the production cost of entry-level hardware.

Growth of the mid-range segment

At the same time, the segment priced above $200 will expand. According to the Counterpoint forecast, sales of smartphones in this price category could increase by 26 percent between 2025 and 2030.

Manufacturers will focus more on the mid-range price bracket. As a result, budget devices will gradually give way to more expensive mid-range models.

For consumers, this may mean an increase in average costs when purchasing a new smartphone. Users who previously chose entry-level devices will have to move to a more expensive segment, use their existing devices for longer, or opt for refurbished smartphones.