US Smartphone Sales Decline 10% in January with Low-End Market Struggles

US smartphone sales declined by 10% year-on-year in January, according to preliminary data from Counterpoint Research’s 2024 US weekly sales tracking. This US smartphone sales decline stems mainly from poor performance in the low-end market. Despite high-end and ultra-high-end smartphones performing better, the overall market continues to face challenges, with user replacement rates remaining sluggish.

Samsung S24 series

Challenges in the Low-End Market

Maurice Klaehne, senior analyst at Counterpoint, highlighted the struggles of the low-end market. He explained that this market relies on volume but faces tough conditions. “Users are delaying upgrades in anticipation of new product releases,” Klaehne said. This has caused the replacement cycle to slow down, impacting overall sales. However, he expects a rebound in February, especially after the launch of Samsung’s S24 series.

Apple’s Strong Performance Despite Decline

Apple’s performance stood out in the midst of the US smartphone sales decline. The company’s iPhone market share grew, even though sales saw a slight decline. Jeff Fieldhack, Research Director at Counterpoint, pointed out that the iPhone 15 series has been strong in the postpaid market. Meanwhile, older models like the iPhone 11 and iPhone 12 remain popular among price-sensitive prepaid users. Fieldhack noted, “This diverse product portfolio has helped Apple remain stable in a market that is experiencing double-digit declines.”

US smartphone sales fell in January compared to the same period last year

Android Phones Struggling in the Market

The performance of Android phones in the US market has been underwhelming, particularly for low-end models. Data from Counterpoint reveals a significant decline in Android shipments in the fourth quarter of 2023. The biggest drop came from phones priced below $300 (about RMB 2,100). Maurice Klaehne added that while high-end Android sales slowed down, the low-end segment faced the steepest decline.

Top Smartphone Manufacturers in the US Market

In the fourth quarter of 2024, the top five smartphone manufacturers in the US market were Apple, Samsung, Motorola, Google, and TCL. Apple’s dominance continued to grow, while Android brands faced more challenges.

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