The U.S. smartphone market maintained its upward momentum in February, posting a 3% year‑over‑year increase in new smartphone sales and a 12% gain compared with February 2024. Growth remained uneven across OEMs, but the overall trajectory underscores sustained consumer engagement as aggressive carrier subsidies continue into early 2026.
Apple once again served as the market’s primary growth engine. iPhone 17 series demand remained exceptionally strong, with Apple’s U.S. volumes rising 25% year‑over‑year in February. Carriers extended elevated subsidy levels on premium postpaid plans helped preserve high upgrade activity despite broader cost pressures in the industry.
The relatively modest 3% overall market growth was held back by Samsung, which saw a 33% decline versus last February. This downturn, however, reflects a timing distortion rather than deteriorating demand. The Galaxy S25 series became available on February 7th last year, whereas the new S26 lineup was announced on February 25th this year but did not ship until March 11th. As a result, Samsung is poised for a meaningful rebound in March as channel inventory fills and early‑cycle demand pulls forward.
All net volume gains in February came from the postpaid segment. Prepaid smartphone sales dipped slightly year‑over‑year, but this pattern is expected to reverse in March and April as tax rebate season strengthens. U.S. taxpayers are receiving higher‑than‑usual rebates, and early indicators suggest increased willingness among prepaid customers to allocate a portion of these funds toward device upgrades. This environment may represent one of the best windows for prepaid users to refresh aging devices, especially as DRAM shortages put margin pressure on OEMs.
These developments, and the widening gap between premium‑tier resilience and value‑tier strain, will be explored in greater depth in our upcoming Connected Intelligence Mobile Market Update sessions with clients. The evolving DRAM‑driven cost dynamics, the shifting cadence of flagship launch cycles, and the emerging K‑shaped market split remain central themes shaping the U.S. smartphone landscape in early 2026.