U.S. smartphone sales decline in January due to fewer device updates and counterpoint finds

U.S. smartphone sales fell 10% in January due to weak demand for cheaper Android devices and customers delaying upgrades ahead of the launch of Samsung Electronics’ Galaxy S24 series, according to Counterpoint Research.

The research firm said U.S. smartphone sales last month were almost half of the record high seen during the same period in 2017, underscoring concerns that the market may have peaked.

“Tough times in the volume-driven low-end segment combined with delayed updates in anticipation of new products have resulted in market declines,” said Maurice Klaehne, senior analyst at Counterpoint Research.

Smartphone sales fell after the pandemic boom as an uncertain economic outlook and a lack of significant new features prompted consumers to stick with existing devices.

Samsung has tried to drum up interest in its new Galaxy smartphones, which went on sale on January 17, by offering a host of artificial intelligence (AI) features, including real-time two-way voice translation.

Counterpoint stated that the S24 series performed well in the US market in the first 1-2 weeks of launch and could result in a rebound in smartphone sales in February.

Meanwhile, Apple continued to gain market share in the U.S. last month with promotional offers for the iPhone 15 series, with cost-conscious consumers seeking older iPhone 11 and iPhone 12 devices that have fallen in price.

“This combination enables Apple to maintain stability in a market experiencing double-digit declines,” Counterpoint said.