The world’s cheapest smartphones have not vanished, but the market for phones priced below $100 is shrinking sharply. IDC says that segment shipped 173 million handsets globally in 2025, then fell almost 60% year over year in the second quarter of 2026. A memory-chip shortage and sharply higher component costs are squeezing low-cost models; growing AI data-center demand is part of the competition for memory, not the sole explanation.
What “disappearing” means for budget phones
There are still low-priced phones for sale. The change is at the very bottom of the market: fewer sub-$100 devices are shipping, and some manufacturers may have less room to keep the cheapest models in their lineups. IDC counted 173 million global shipments of phones priced below $100 in 2025 and reported that shipments in this segment fell almost 60% year over year in Q2 2026. IDC’s Q2 2026 market update also put total global smartphone shipments at 276.3 million units, down 7.4% from a year earlier.
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Those are shipment figures, not a count of every model available in every country or a measure of current store inventory. They show the sharpest pressure at the cheapest end, while the wider smartphone market also contracted.
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Why AI is adding pressure to phone prices
Memory is a major cost for low-end phones
IDC reported that memory costs had risen nearly 300% year over year and that memory accounted for more than 65% of the bill of materials for low-end phones. That makes memory scarcity especially consequential for devices built around tight cost targets: manufacturers have fewer options to absorb higher component costs without changing prices, specifications, or which models they offer.
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Data centers compete for memory supply
AI services require data-center infrastructure, and that demand is contributing to competition for memory chips. In a 5 October 2026 report by Rest of World, Ramon Llamas, research director in mobile devices at IDC, said: “There are three primary manufacturers of memory, and in late 2025, all of them pivoted the vast majority of their supply towards AI centers instead of consumer electronics.”
This is a supply-chain connection, not evidence that phone makers are dropping sub-$100 models simply because those phones cannot run on-device AI. The available reporting identifies memory scarcity and rising costs as major pressures, but does not establish how much of the decline is independently attributable to AI data centers rather than other market forces.
Prices are rising, but not uniformly
Rest of World reported smartphone price increases of 21% in India, 19% in Asia-Pacific, 18% in the Middle East and Africa, and 5% in the United States. These are regional figures reported by that article, not readings from a single independently verified global price index. Local prices, models, and market conditions differ.
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Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Clear out junk files and repair common Windows errorsFree Scan →Scan for outdated or missing drivers - takes under a minuteDriver Scan →One example from the report: the Xiaomi Redmi 15C 128GB in India rose from ₹12,499 at its December 2025 launch to ₹16,999 in June 2026. Those are historical prices for that country and configuration, not a current quote or a price applicable elsewhere.
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The pressure could also shift what shoppers mean by “cheap.” In the Rest of World report, Counterpoint senior analyst Ivan Lam said: “What used to be below $150 may become below $250, or even $300.” That is an analyst’s assessment of how the market’s low-price tier could move, not a guaranteed price threshold for every country or brand.
What forecasts say about the rest of 2026
IDC’s August 2026 forecast projected that global smartphone shipments would fall 16.7% for the full year and that the average selling price would reach $581, up 27.6%. These were forecasts published during 2026, not completed-year results. IDC’s forecast describes a difficult year for the market overall; it does not mean every phone will rise to that average price or that sub-$100 phones will disappear entirely.
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Why the change matters most to people with the least room to pay
A low sticker price is not a luxury for everyone; it can determine whether someone can get online at all. The GSMA’s State of Mobile Internet Connectivity 2026, summarized in a 15 September 2026 release, found that by the end of 2025 an entry-level internet-enabled handset cost the poorest 20% of people in low- and middle-income countries 44% of average monthly income. In sub-Saharan Africa, the figure was 76%.
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1Repair Windows errors before they cause bigger problems2Fix the driver behind crashes, sound loss and screen glitches3Clear out junk files and repair common Windows errorsThose figures describe affordability as a share of income, not a universal handset price. They show why even modest increases or the loss of the very cheapest options can matter disproportionately to people already facing a high barrier to mobile internet access. Claire Sibthorpe, head of digital inclusion at the GSMA Foundation, told Rest of World: “When smartphones remain available but become unaffordable, consumers make difficult sacrifices to keep themselves online.”
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- 【High-definition large screen, visually stunning】Featuring a 6.6-inch In-Cell HD display with a resolution of 576×1280 pixels, the screen delivers vivid and bright colors for an exceptional visual experience. Whether watching videos, browsing the web, or playing games, everything appears clearer and smoother.
- 【Powerful Performance, Smooth Operation】Equipped with a MediaTek MTK6739 quad-core processor, combined with 4GB RAM and 32GB storage, the system runs stable and efficient. Supports microSD card expansion up to 256GB, easily storing more photos, videos, and apps.
- 【Capture clarity, record brilliance】Equipped with an 13-megapixel front camera and a 16-megapixel rear dual-camera system, it meets all your selfie and everyday photography needs. Capture every beautiful moment in life with clear and natural images.
- 【Long-lasting battery life, fast charging】Features a built-in 5000mAh high-capacity battery with a Type-C charging port for faster, safer charging. Delivers powerful endurance for daily use, eliminating the need for frequent recharging on the go.
- 【Smart System, Seamless Experience】Powered by Android 12.0, featuring a clean and intuitive interface. Supports facial recognition unlocking and a triple-card slot design (dual SIM + memory card), offering flexible and convenient communication and expansion options.
What buyers can check before choosing a cheaper phone
There is no single best replacement for a sub-$100 model across all countries, and the cited market reports do not provide a tested ranking or current retailer inventory. Compare the actual cost and useful life of the options available where you live:
Quick Recap
- Total cost: Compare the local upfront price with the full amount due under any installment plan, including fees or interest.
- Exact configuration: Check the RAM and storage listed for the specific model; versions with the same name can differ.
- Software support: Look up how long the manufacturer promises security updates and operating-system support for that exact model.
- Network compatibility: Confirm the phone supports your carrier’s bands and local network features before buying, especially for imported devices.
- Stock and seller: Verify current availability, the seller’s return policy, and whether the device is new, used, or refurbished.
- Refurbished alternatives: A used or refurbished phone may offer better specifications for the money, but check battery condition, warranty, repair options, and update support.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
