A surge in component costs and shrinking shipment forecasts are challenging low-cost handset sales, prompting consumers to turn to refurbished phones amid a struggling segment.
The budget smartphone is becoming a harder sell. Nothing has removed the CMF Phone 2 Pro from sale, yet the company has also scrapped a planned follow-up and has pointed to rising RAM costs as the reason a CMF Phone 3 Pro may never launch. That is a sharp warning sign for a segment built on low prices and high volume.
Uswitch says budget handsets have risen in price by 23.5% on average over the past four years, faster than the 16.2% increase seen in flagship models. The same analysis says Apple’s entry-level iPhone has climbed by 43%, from the iPhone SE in 2022 to the iPhone 17e, underlining how even lower-cost phones are drifting upwards. Uswitch also argues that a premium new handset now represents close to eight months of groceries for one person, which helps explain why refurbished devices are attracting more attention.
IDC adds that the pressure is not temporary. The research firm now expects global smartphone shipments to fall by 16.7% in 2026, the steepest annual decline it has forecast, as memory shortages drive up costs across the market. It says NAND and DRAM prices have risen by more than 300% year on year and that the shortage is likely to continue until at least 2028. IDC also warns that the sub-$100 segment is being hit especially hard, with shipments in that bracket set to fall by nearly 60% year on year in the second half of 2026.
For buyers, the practical response is straightforward. Refurbished phones can deliver substantial savings, and Uswitch says consumers can save up to £274 on devices with current features. That route is particularly useful for iPhone shoppers, since Apple rarely discounts new models by much. It is also worth paying close attention to software support, because a cheaper phone that loses updates quickly can prove more costly over time than a refurbished model with a longer service life.
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