U.S. new smartphone sales through national retailer channels rose 5% year-over-year (YoY) in May 2024, reversing consecutive declines seen in May 2023 (down 14% YoY) and May 2022 (down 8% YoY). As we’ve noted over the past six months, this positive momentum was expected given the record age of the U.S. smartphone installed base. Unlike most technology categories, mobile phone upgrade cycles rarely extend beyond four years due to battery performance challenges.
Phones sold through national retailers are predominantly activated on prepaid plans, so sales in these channels tend to favor affordable models. Indeed, the 5% YoY growth in May was largely driven by Motorola, whose volumes surged over 50% compared to May 2024. The Motorola G Play (2024)—an affordable, non-5G model—was the top-selling smartphone through national retailers in May. That said, Motorola’s MSRP-based revenue nearly doubled, fueled by strong demand for its new 5G-powered devices, including the razr foldable series.
Apple also saw gains, with volume up 6% and MSRP-based revenue up 15%, driven by robust demand for the iPhone 13, a key promotional focus in prepaid.