Budget-friendly phones as we know them are either dead or dying a sudden and painful death
While the mobile industry in its entirety is in big trouble, one market segment in particular is suffering the consequences of rising component costs and product prices.
IDC (International Data Corporation) analysts are also expecting an entire market segment to essentially perish before long, leaving tens (perhaps even hundreds) of millions of users without a lot of options apart from holding on to their existing handsets for longer than initially planned and eventually spending more money on a new phone.
The "cheap smartphone era" is over
If you've been thinking of buying a low-cost smartphone these last few months and noticed fewer and fewer models fit your budget and needs, you're probably not alone... and things are unlikely to get better anytime soon.
All smartphones are getting costlier, but that's obviously impacting cash-strapped buyers the most. | Image by IDC
That's because the average selling prices (ASPs) of smartphones around the world have recently ballooned and they're expected to jump even higher through the end of this year and the next. Obviously, premium devices like Samsung's Galaxy S26 series, the Z Fold 8 Ultra, and Google's Pixel 11 family are playing a crucial role in a surge predicted to hit as much as 27.6 percent in 2026 compared to last year, but the most affordable phones around haven't been able to dodge the industry-wide price hikes caused by rapidly rising component costs either.
And while the S26 Ultra and Galaxy Z Fold 8 have somehow still managed to become big hits, the sub-$100 segment lost close to 60 percent of its Q2 2025 global volume during the same timeframe of 2026, looking at an even "faster fall" in the second half of the year.
Recommended For You
What will you do if your go-to phones continue to get pricier?
With smartphone prices only expected to "stabilize" at some point in 2027 or 2028 rather than go back down to their record low levels of the last few years, the "days of the cheap smartphone" seem numbered, as manufacturers are likely to soon find it impossible to sell... anything at under $100 or even $150.
This is actually good news for (some) companies
It almost goes without saying that an ASP rise is (theoretically) a good thing for smartphone vendors, which should be able to generate higher revenues with lower shipment figures.
But that won't be true for everyone, and "smaller Android brands anchored in the entry tiers" are in big trouble. Think the likes of Redmi, Realme, and even Oppo, Vivo, and Xiaomi, all of which have derived a large chunk of their global smartphone sales from budget-friendly models in recent years.
The smartphone market should finally start to grow again in 2028... if the current forecast is right. | Image by IDC
These companies need to pivot all of a sudden to a significantly higher-priced product portfolio with an increased focus on premium models with sustainable profit margins, which their fanbases might reject in favor of Apple and Samsung's flagships.
Apple is particularly well-positioned to take advantage of these struggles and continue to improve not only its market share as far as shipments are concerned, but its average selling prices and profits too.
Don't forget to check out these other news stories about the mobile industry:
... and there are no prizes for guessing which one. That's right, foldable sales are now forecasted to rise by 12.6 percent in 2026 compared to last year and then by 18 percent in 2027 compared to this year.
Apple will probably become the world's top foldable smartphone vendor next year. | Image by IDC
The smartphone market as a whole, mind you, is headed for a cataclysmic 16.7 percent year-on-year sales decline in 2026 and then a subsequent 2.9 percent fall in 2027 before returning to (modest) 4.5 percent growth in 2028, so the foldable segment's potential expansion this year and the next is certainly nothing to sneeze at.
But those 12.6 and 18 percent numbers are not that impressive either, at least when you consider how high (or rather how low) foldable smartphone shipments are expected to go in 2027. 27 million units represents less than 3 percent of the entire smartphone market, so while Apple is likely to give the segment an important boost and a little credibility in the grand scheme of the global mobile industry with its first-gen iPhone Ultra next month, the road to mainstream popularity remains long and challenging.
Six-month unlimited plan is now 57% off
$90
$210
$120 off (57%)
Mint Mobile is now allowing you to get whichever plan you like for either three, six, or 12 months for just $15/mo. If you go for the six-month unlimited service, for instance, you'll now have to pay just $90 upfront instead of $210.
Adrian, a mobile technology enthusiast since the Nokia 3310 era, has been a dynamic presence in the tech journalism field, contributing to Android Authority, Digital Trends, and Pocketnow before joining PhoneArena in 2018. His expertise spans across various platforms, with a particular fondness for the diversity of the Android ecosystem. Despite the challenges of balancing full-time parenthood with his work, Adrian's passion for tech trends, running, and movies keeps him energized. His commitment to mid-range smartphones has led to an eclectic collection of devices, saved from personal bankruptcy by his preference for 'adequate' over 'overpriced'.
A discussion is a place, where people can voice their opinion, no matter if it
is positive, neutral or negative. However, when posting, one must stay true to the topic, and not just share some
random thoughts, which are not directly related to the matter.
Things that are NOT allowed:
Off-topic talk - you must stick to the subject of discussion
Offensive, hate speech - if you want to say something, say it politely
Spam/Advertisements - these posts are deleted
Multiple accounts - one person can have only one account
Impersonations and offensive nicknames - these accounts get banned
To help keep our community safe and free from spam, we apply temporary limits to newly created accounts:
New accounts created within the last 24 hours may experience restrictions on how frequently they can
post or comment.
These limits are in place as a precaution and will automatically lift.
Moderation is done by humans. We try to be as objective as possible and moderate with zero bias. If you think a
post should be moderated - please, report it.
Have a question about the rules or why you have been moderated/limited/banned? Please,
contact us.
Things that are NOT allowed:
To help keep our community safe and free from spam, we apply temporary limits to newly created accounts: