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The sub-$100 phone is disappearing. Refurbished is becoming America’s budget tier
US sales of new smartphones under $100 fell 64% in a single year. Motorola’s budget G-series moved up into the $200–$300 range. That range is also where a refurbished 2022 flagship now sells.
By Bryan Sloan · Published September 24, 2026 · Editorially independent · we may earn commission on some links
Short answer: the cheapest new phones are being priced out of existence, and refurbished is filling the gap. Counterpoint Research found US smartphone sales fell 5% year over year in Q2 2026, and sales of phones under $100 fell 64% as manufacturers stopped shipping them or raised prices to cover memory costs. Counterpoint forecasts global shipments falling more than 14% this year, the worst decline on record. At the prices on our Best Buys page, a refurbished iPhone 14 from Back Market starts at $261. That is inside the $200–$299 range where Motorola’s entry phones now sit.
What Counterpoint found
Counterpoint’s US figures for the second quarter, reported by TechSpot on August 13, show where the damage is:
- Overall US sales fell 5% year over year. Counterpoint blames rising memory prices first, with wider economic pressure weighing on demand.
- Sales of phones under $100 fell 64%. Manufacturers either stopped shipping these phones or raised prices to cover higher memory costs.
- Smaller brands pulled back. Several have left the US market or downsized, HMD among them. Carrier-branded white-label phones were hit hardest. Higher component costs narrowed the price gap between them and entry models from Samsung and Motorola, leaving buyers less reason to pick them.
- Budget phones moved up a price band. Motorola’s price increases moved its G-series into the $200–$299 range. Sales in that range grew almost 200% year over year.
Counterpoint expects average selling prices to keep rising through the third quarter.
Why the cheapest phones are hit first
Memory is the reason. Omdia’s research, reported by TechSpot on July 9, found memory made up nearly 60% of the parts cost of phones under $400 in the first quarter of 2026, and more than 64% for phones under $99. Phones at that level are already built on the thinnest margins in the business. When the biggest part more than doubles in price, there’s nothing left to trim. Omdia expects global shipments of phones under $400 to fall 22% this year.
Globally, Counterpoint forecasts shipments falling more than 14% in 2026 to about 1.07 billion, below even 2023’s decade low (reported by The National, August 23). Principal analyst Yang Wang said manufacturers are removing products and configurations “no longer economically viable,” particularly at lower price points. Counterpoint published an updated forecast by price band on September 11. It is for subscribers only, so we haven’t seen it and aren’t quoting it.
Still heading up, if one report is right: on September 15 SamMobile relayed a South Korean report that Samsung is pushing phone makers, Apple included, for another 7–10% on mobile memory chip prices. That is a single report and Samsung has not confirmed it. The reasons memory prices are climbing are covered in
our earlier analysis.
What $250–$400 buys instead
These are the lowest prices on our Best Buys page for phones in and just above the range that entry-level Android phones have moved into:
| Model (unlocked) | Back Market (refurbished) | Swappa (used listings) | Original price |
|---|
| iPhone 14 128GB | $261 | $248 | $629 |
| Galaxy S22 Ultra 256GB | $329.59 | $306 | $1,199.99 |
| Galaxy S23 Ultra 256GB | $402.79 | $354 | $1,199.99 |
| iPhone 15 128GB | $391 | $355 | $729 |
Prices last checked September 14, 2026. Swappa is a marketplace of used phones listed by individual sellers, not refurbished stock, and the condition and warranty depend on the listing. Back Market listings are refurbished by third-party sellers under Back Market’s own warranty. Confirm before buying, because second-hand prices have been rising this year.
The trade-off isn’t free. A 2022 flagship has less software support left than a phone launched this year, and older batteries wear out. But the choice at the bottom of the market has changed. The cheapest new phones are disappearing, and new entry-level models are moving up to $200–$300. At that price, a refurbished former flagship with a better camera, screen and build is a real alternative, and often the better phone.
Before you buy a refurbished phone as your budget phone
- Check how long software updates will last. Samsung committed to five years of security updates for the Galaxy S22 series, which launched in February 2022, so that support is due to end in early 2027. The S23 series has a year more. Apple doesn’t publish end dates, so confirm the model runs the current version of iOS.
- Confirm it works on your carrier. If you’re on prepaid, buy unlocked and check the model is compatible with your carrier’s network before you pay.
- Know what warranty you’re getting. There is no single federal standard for refurbished warranties in the US. Back Market includes a one-year warranty, while Swappa depends on the individual listing. Our refurbished warranty guide compares them.
- Ask about the battery. Good sellers state battery health or guarantee a minimum. If a listing doesn’t say, ask.
Common questions
Why are cheap smartphones disappearing in the US?
Memory costs. Omdia found memory made up nearly 60% of the parts cost of phones under $400 in early 2026, and more than 64% under $99. Counterpoint reported US sales of phones under $100 fell 64% year over year in Q2 2026, as manufacturers stopped shipping them or raised prices.
How much have US smartphone sales fallen?
Counterpoint Research reported US smartphone sales down 5% year over year in Q2 2026. Globally, it forecasts shipments falling more than 14% in 2026, the largest annual decline on record.
What is the cheapest good phone to buy right now?
At our September 14 price check, a refurbished iPhone 14 128GB started at $261 on Back Market and a Galaxy S22 Ultra at $329.59. Used listings on Swappa started lower, at $248 and $306. Check software support first: Samsung’s security updates for the S22 series are due to end in early 2027.
Will phone prices come down soon?
Not in the near term. Counterpoint expects average selling prices to keep rising in Q3 2026 and the market to stay under pressure into 2027. It warns that affordability will recover slowly because higher-cost inventory has to work through the channel first.
Sources
- Rob Thubron, TechSpot, August 13, 2026 — Counterpoint Research’s US Q2 2026 sales data, including the 64% fall in sub-$100 phones. Counterpoint’s summary: US smartphone sales fall 5% YoY in Q2 2026.
- Alvin R Cabral, The National, August 23, 2026 — Counterpoint’s 2026 global shipment forecast and comments from Yang Wang.
- Rob Thubron, TechSpot, July 9, 2026 — Omdia research on memory’s share of the parts cost of sub-$400 phones.
- Adnan Farooqui, SamMobile, September 15, 2026 — relaying a South Korean report on a further Samsung memory price increase (single, unconfirmed report).
- Refurbished and used prices — RefurbVerify Best Buys, checked September 14, 2026.
Counterpoint and Omdia figures are research estimates and forecasts, not audited sales. Prices change often and vary by condition.
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