Counterpoint: Global sales of cheap smartphones will increase by 10% year-on-year in Q2 2024

According to the latest data from Counterpoint, global sales of cheap smartphones (wholesale price below $150) recovered strongly in the second quarter of 2024, increasing by 10% year-on-year to more than 100 million units. This growth has pushed cheap smartphones to account for 37% of global smartphone sales in the second quarter of 2024. This recovery was largely driven by emerging markets, which accounted for 3/4 of the total sales in this segment. Another factor driving this growth is the faster integration of high-end smartphone features into affordable devices by OEMs. This trend reflects the overall maturity of the smartphone industry.

The top 10 best-selling budget smartphones accounted for a quarter of the budget smartphone market in the second quarter of 2024, up from 21% in the same period last year. The number of active budget smartphone models decreased to more than 1,500 in the second quarter of 2024, almost half of the same period in 2018. This trend highlights the consolidation of the budget segment as OEMs focus on streamlining their product portfolios and consumers prefer well-known brands.

In the second quarter of 2024, the top ten cheap smartphones were dominated by Xiaomi, Samsung and OPPO, with the remaining position occupied by TECNO. The best-selling cheap smartphone was the Xiaomi Redmi 13C 4G, followed by the Samsung Galaxy A05 and A15 4G. The widespread popularity of these models in various regions pushed them to the top of the ranking.

The budget smartphone market is experiencing a significant shift towards 5G, with 5G devices accounting for 24% of the market share in Q2 2024, a 2.5x annual sales growth. India and China are the main contributors to this growth, with 5G becoming a standard feature in the budget segments of these markets. As 5G becomes more affordable, the sub-$150 segment will see significant growth, with OEMs using 5G as a key differentiator.

Xiaomi Redmi 13C 5G, launched in December 2023, debuts in the top 10 in Q2 2024, making it the first 5G budget smartphone to enter the top 10. Other products that performed strongly in the budget 5G category this quarter include Xiaomi Redmi 12 5G and Realme 12X. In addition to 5G, these smartphones also offer competitive specifications such as powerful cameras, larger battery sizes, and fast charging support.