Home Tech Reviews Smart Phone iPhones And Android Phones Will Get More Expensive – Here is Why

iPhones And Android Phones Will Get More Expensive – Here is Why

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smartphone get more expensive

Advancements in technology has made great improvement in the production of smartphone device. Gone are the days of smartphones with very small memories, fewer pixel of camera and very small screen size. Now, smartphone producers like Apple, the maker of iPhone and Samsung are pushing the limits in their flagship devices. Thanks to them and others, we now have smartphones with up to 512GB of storage, and many high-end features that might earlier be deemed impossible. But their is a catch, they are way too expensive and no sign of getting cheaper by the day.

This high prices are in no way limited to these two brands. This new wave of higher prices for top-tier devices is part of a larger trend that affects the prices of most phone brands, including Google, Huawei and OnePlus. Premium models aren’t the only products getting more expensive; mid-tier devices are joining the bandwagon too.
These hiking prices across the top-tier mobile devices signal that costlier devices are here to stay, and here are the reasons. Among other reasons, it may the consumer’s fault who rushes to buy them in the first place.

Why iPhone And Android Phone Will Get More Expensive

Consumer Behavior

When Apple broke the $1,000 barrier for its iPhone X in 2017, critics scoffed at its exorbitant price, but it quickly outsold every other Apple device in each week since it first went on sale Nov. 3, 2017. Apple’s gambit paid off as consumers accepted the higher-price models, and other manufacturers followed Apple’s lead. This underscores the fact that, while all consumers may not be comfortable with the high price tag, still many are will to pay this prices for their beloved devices.

The High Demand And Necessity Of the Device

Many people’s life today revolves around their devices, using it for their everyday activities. Some simply can not live without it, and smartphone producers know this. The trend of increasingly costly handsets in the top-tier underscores the cell phone’s importance as an everything-device for communication, work, photography and entertainment. And as processing power, camera technology, battery life and internet data speeds improve generation after generation, the value people attached to a phone is sure to swell.

Production Cost

Rising prices aren’t unusual on their own. Faster and better components like processors and cameras cost more to make. The financial load of researching and developing new materials also gets folded into the final product. And inflation affects the cost of goods outside of tech, too.

The Need For More Profits

It is true that, with new features on high-end device comes a higher cost of production, and this trickles down to the selling price. However, the production and the Research and Development (R&D) spending and inflation don’t tell the entire story behind your phone’s increasing expense. By increasing the prices of their phones with each release, Apple, Samsung and other leaders in the industry are creating an ultra high-end segment that can make each sale more profitable — that’s important as people start holding on to their phones longer, for three years or more.

Demand For More Sophisticated Device

Demand for more storage over the past few years has triggered price hikes, pushing up the cost of memory and prompting suppliers to invest in building more factories to meet the demand.

Adding more sophisticated cameras like the iPhone XS’ 3D depth sensing front-facing camera, or more lenses, costs more. And so do materials like glass or ceramic for a phone’s casing, or sturdy aerospace-grade aluminum for the frame. It’s also expensive for companies like Samsung to build a whole new manufacturing process for elements like curved glass and flexible OLED displays.

Yet while the cost of all these components — called the Bill of Materials, or BOM — can partially explain why high-end phones cost more each year, many experts say that phone makers are padding their profits.

Some Devices Will Still Be Affordable

High prices on top-tier phones may not mean that the cost of every phone will rise. While the shiniest, most powerful devices are still locked on a path to their highest prices yet, there’s still a strong demand for mid-range and entry-level phones aimed at people with tighter budgets or more basic needs. To make this possible and for users to have a taste of the high-end device, Google, the maker of the Android OS has started making the lite version of their latest OS, starting with the Android 8 Oreo “Go Edition”

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1 COMMENT

  1. […] As we expect how this will turn out later this year – September – when the company unveils its iPhones each year, it is important to acknowledge the changing market in the smartphone industry in 2019. With innovative new form factors and features being tested by vivo, xiaomi and of course Samsung. 2019 is also expected to be a year that herald a range of foldable phones. For Apple to gain more this year, a lot has to be done to meet the competition. Conventionally, it is expected that with time, prices of smartphone will increase due to some factors. […]

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