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Some 173 million smartphones priced below $100 were shipped globally last year. In the second quarter of 2026, shipments in that segment fell almost 60% from a year earlier,
In a bid to lift margins, Chinese manufacturers are moving up-market. As cheaper models become uneconomic to produce, manufacturers are pruning them from their line-ups, pushing the overall market higher. Neil Shah at Counterpoint Research estimates Xiaomi's average selling price has risen about 30% since 2023 to $197, while Oppo's has climbed by a similar amount to $300. Xiaomi's sub-$200 share of shipments fell from 60% to 52.5% over the same period, according to IDC data. In mainland China, less than 20% of Xiaomi's volume is below $200, according to Chow. That shift was on display this week when Xiaomi unveiled its higher-end 18 Fold, starting at 10,999 yuan ($1,640) and aimed squarely at the premium segment. Xiaomi didn't immediately respond to a request for comment outside normal business hours. Chinese vendors are able to counter some of the pricing pressure, as they earn lucrative internet services and app revenues at home. Still, prices are unlikely to retreat anytime soon. Shah says it is difficult to see prices returning to 2024 or early-2025 levels because memory manufacturers have little incentive to add capacity for the low end. Even if the memory crunch eases, Ma said, "that just means that the price increases moderate," not reverse.
