Accessible flagship smartphones priced between $700 and $999 are emerging as the best value segment in 2026, as consumers demand meaningful upgrades amid rising device prices, according to Counterpoint Research.

Memory costs are surging due to strong demand for AI-driven technologies, pushing up smartphone production costs.

Memory prices rose 40%–50% in late 2025 and are expected to climb further in early 2026, with premium device costs projected to increase by more than $150, potentially lifting retail prices by over $200.

The accessible flagship tier grew 25% globally in 2025, driven by strong demand in regions such as Europe, Latin America, and the Middle East and Africa, as consumers seek premium features at lower price points.

Recent launches from Samsung Electronics Co., Ltd. (OTC:SSNLF) and Xiaomi Corp. (OTC:XIACF) show incremental upgrades alongside higher prices, creating opportunities for competitors like Alphabet Inc. (NASDAQ:GOOGL) Google, HONOR, Motorola, and OPPO.

Premium Segment to Lead Amid Industry Downturn

Counterpoint forecasts global smartphone shipments will decline 12% year over year in 2026, marking the steepest drop on record. Lower price tiers are expected to be hit hardest, with the sub-$100 segment shrinking significantly.

The premium segment, defined as devices above $700 wholesale, is expected to be the only area of growth. However, success will depend on whether manufacturers can balance rising costs with compelling feature upgrades.

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