A smartphone acts as camera, messenger, wallet, and so much in between — calling a phone an “everyday essential” may still be an understatement. Today, 91% of U.S. adults own a smartphone, compared with just 59% in December 2014.¹ People see their phones as a tool to help them live, spending an average of more than 4-1/2 hours on them each day.²

Screen time can also support people in their financial journeys: 71% of people say “Dreamscrolling” — browsing for things they hope to own someday — motivates them to hit their money goals, according to Empower research.

With companies balancing possible impacts from tariffs, consumers now have a window of opportunity: The price of smartphones has fallen by 14% in the past year, based on Consumer Price Index (CPI) data from April.³

Business back-and-forth

Some shoppers tried to think ahead amid stop-and-go tariff news. During the first quarter of 2025, Apple saw strong iPhone sales of $46.8 billion, a nearly 2% jump that beat expectations. That figure is an important barometer for the company, as smartphones made up 49% of Apple’s total revenue for the quarter.⁴

The world’s top-selling smartphone maker, Samsung, has only a 0.6% lead over Apple in terms of market share.⁵ In its most recent earnings, Samsung attributed profitability growth to sales of new phone models.⁶

Responding to demand, manufacturers made a call for rush orders: Smartphone shipments to the U.S. climbed 30% in March, getting more supply into the country.⁷

Time will tell whether smartphone prices will stay at current levels. In early May, the U.S. administration announced a 90-day tariff pause with China. Before the pause was announced, Apple had estimated that tariffs could add $900 million in costs for its current quarter and also disclosed that the company now sources around half of iPhones for the U.S. from India, where tariffs are lower.⁸

Some wireless carriers have responded to the economic uncertainty with offers to lock in plan prices for three and even five years.^9,10 Adjusting promotions to retain smartphone-using customers could be a smart move, as cord cutting isn’t just limited to televisions; 15% of U.S. adults are “smartphone-only” internet users who own a phone but don’t have broadband service at home.¹¹

Read more: Double-clicking into internet expenses

Longer lifespan

Beyond the tariff landscape, consumer behavior is also influencing how often people switch out their smartphones.

Surrounded by the economic climate of 2025, 32% of Americans are reducing their discretionary spending, according to Empower’s “The Great Decide” research. Those costs could include smartphones, which nearly 2 in 5 people (39%) consider luxury items.

Meanwhile, people have also been getting more life out of their smartphones, thanks in part to stronger materials being used to make them.¹² In March, Verizon leadership noted that the typical phone upgrade cycle has been extended to three and a half years.¹³

Should a smartphone screen get a crack but is otherwise in working order, Americans are more or less split on what to do next:¹⁴

• 30% of people would immediately get a professional to repair the screen.

• 34% would keep using the phone as-is until the situation gets worse. (The most popular choice among consumers age 18-34, at 38%.)

Only 8% would consider buying a new phone, though people age 55 and above would be the most likely to go with a full replacement (11%).¹⁵

Future features

People are also keeping practicality in mind when it comes to what they’re looking for in their next phone. When it comes to updating devices, adult smartphone users in the U.S. are looking for:¹⁶

• Longer battery life (61%)

• More storage space (46%)

• Upgraded camera features (38%)

Manufacturers are banking on artificial intelligence to also push sales forward. Around 400 million smartphones sporting generative AI are expected to be shipped in 2025, making up a third of the overall market.¹⁷

Read more: GenAI tools that are reshaping daily life and business

People could be more receptive, as Empower research found that close to half of Americans (47%) are more comfortable integrating artificial intelligence into their financial lives compared to a year ago.

Making the call

Whether people are motivated by price, necessity, or wanting to live a little with an upgraded smartphone, the scene is set for shoppers to consider their options.