Smartphones Are Becoming Too Expensive

Smartphones market

It’s no secret that modern smartphones are becoming more expensive. Just recently released Samsung Galaxy S8 has the lowest price of $730 and S8 Plus adds a hundred more. The same thing goes for Apple with its iPhone 7 or 7 Plus. A few years ago, a 700-dollar smartphone seemed outrageous. Now, the prices are slowly coming towards the magic number of $1000 and may reach it soon.

That’s true, according to statistics from androidauthority.com, the average price of flagship smartphones increased from $600 in 2013 to $750 in 2017. This is, by the way, a 25-percent growth. And this didn’t happen because of any economic crises or huge inflation rates. In fact, the reasons are pretty simple.

25% price growth does seem a bit extreme but if you were to compare flagship smartphones from 2012 and 2017, you would definitely see the difference. Firstly, 2012 smartphone doesn’t come even close to its 2017 counterpart in terms of productivity. Not only that, the construction quality became much higher due to superior materials.

Secondly, the amount of new technologies today is almost overwhelming. Fingerprint sensors, iris scanners, voice assistants, wireless charging, NFC-chips – all these require more costs. Androidauthority.com visualizes the second point with a graph that shows how the bill of materials increased for the Samsung S series. While the costs for Samsung S2 were only $212, the number went up by 32% (Galaxy S6 Edge – $284).

Thirdly, flagship smartphones are losing demand because of new middle-end smartphones. These devices aren’t equipped with super-cool features but they offer enough functionality for a reasonable price. As the demand is falling, the prices will go up to make up for it.

So, what should we expect next? Of course, all the most popular smartphones cost a lot and they may cost even more in the future. However, companies don’t raise prices intentionally. Every year, we see more innovations in this segment and it takes more money to fit them into a smartphone. After all, that’s why people always ask for and companies have to listen to their customers.

 

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