Smartphone prices are getting out of hand

By Sidirgot
September, 17 2018
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Just like the new iPhone line apple has revealed, prices for the new smartphones are getting higher each and every year across the entire price range.

To some people this might not be that surprising but why is this actually happening since technology is becoming more accessible, let’s take a look.

It is not the first time

Back in 1984 when the first smartphone was released the situation was like today, the prices were quite high so the current situation isn’t something new.

With Apples and Samsungs lines starting at 1000€, even google with the Pixel at 600€ the prices are hitting record breaking points.

In 2007, Apple revealed the first ever fully capacitor touch screen smartphone which set the starting price of a high-end smartphone at 600€, since then the prices for high-end Android devices and iPhones has steadily been climbing.

Even thought some of the manufacturers might be overcharging their products to get more money out of the sales, there are some underline reasons that play a significant role into the whole situation.

More Capable

Smartphones are becoming more advanced and capable each and every year. A high-end smartphone this days has enough gist as a laptop from a couple of years ago.

If you take a look at the Processor some of the manufacturers are using in their high-end line up (Qualcomm Snapdragon 835) you will be amassed to find out that the same processor can be used to run full Windows 10 PCs.

Using chips like this enables the use of features like Dual Cameras, Virtual Reality and a wide range of software that otherwise wouldn’t be able to run on devices like this.

Cost to Manufacture

The smartphone industry is one of the hardest for manufacturers to comply with, since users are expecting innovation and a better experience with every new device that comes out.

Every manufacturer has to overcome space constrains, provide more features, offer a better user experience and strive to reduce power consumption. This, all doesn’t come for free, every new innovation and technology demands engineering knowledge and a wide range of testing.

If you add in the bill of materials used in the manufacturing of high-end smartphone, sales tax, foreign exchange rates the prices are starting to make some sense.

The Samsung s8 for instance cost 307$ to make, the iPhone 7 at 248$ and the iPhone 10 at 412$. Even the cost to manufacture the phone is hitting record breaking points. 

Consumer demand

Lastly the biggest reason is the demand on the market for better and improved products. As long as people are willing to pay high prices for better features the manufacturers can sell their products at this price.

Some people jump on the idea of buying a new 700€ phone, just to be able to have the latest and best features available. Maybe people will have to realize that having a mobile phone from 2-3 years ago is ok, and will probably work just fine.

To conclude I am not certain if we are to blame for the prices getting higher or are the manufacturers in the wrong.