Why do phones get more and more expensive?

Nowadays, phones keep getting more and more expensive, whether it’s a popular model (Apple, Samsung, Xiaomi, Huawei) or just a flagship phone trying to win the consumers. However, many of you’ve been wondering (or no one at all), just why do these phones keep getting more and more expensive considering that our wallets run drier and drier. It has been a big concern for our team and after a long search and thinking we’ve come to a conclusion.


It has been the most of the times exciting when it comes on buying a new phone, but we still are a bit concerned for the price of it, as cases and maybe portable chargers are coming together with this purchase.

The price problem is due to the consumers themselves, as money is getting low and people lose hope on flagship phone and automatically search for a good-performance with a good battery life and low cost phone.

Companies have surely considered themselves on lowering the costs of their new and upcoming phones, but this can’t be real. As consumers tend to go away from the pricey flagship phones, non-popular but ambitious companies step on that to get customers and “equip” them with their low cost, but many times great performance phones.


As we earlier said, with the brand new company devices announced, Apple revealed their iPhone XS Max priced at $1400, the Galaxy S10+ phone gets up to $1600, Samsug’s foldable phone has gone itself at $2000 and Huawei has gone even higher, with its phone starting at $2600.

Death of Contracts

You thought that when you were buying a new phone through a contract at $200 it was pretty cheap. But, considering the after-purchase costs and monthly bills, that amount automatically surpasses personal consideration of money spent and just goes higher and higher. A lot of times we don’t really pay attention to the added costs companies try to hide, so that is a reason of contracts gone away. After the ending of two-year contracts, allowing the phone carriers to low prices on people, which automatically changed them into consumer favorites. So, that made companies reconsider and even raise their prices to carriers.


More expensive parts

As people were used to buy $200 phones, companies tended to make their prices higher to achieve their goals. That also made them consider upgrading them with fancier features to look like better. Every company at their revealing events describes its phone or new device as unique and equipped with the best camera or the best design ever existed. We can’t though argue with that, considering we now have much nicer phones, better cameras and beautiful designs. If we think back at the first phones, the build price of the older models is less than $200, but if we observe last year’s iPhone XS Max,the build cost automatically goes up to $390. Yes, that is a lot less than Apple sells their phones, but that’s just a cost of parts. It doesn’t include RND, manifacturing, shipping, support, the salary of the Apple Store employee who sold the phone to you and even more.


The prices of the iPhones haven’t necessarily gone up a ton. Apple sold its flagship phone for $650 in 2011, with inflation, that’s about $720, close to the cost of an iPhone XR.

So yes, the prices have risen, a lot. The phone you will buy now will be expensive, but it will last long. Even if you buy an iPhone 7, it will be there with you for a long time. In the U.S., phones sell up to $200, considering that, you can buy a phone that checks the preferred boxes, than buying one so expensive but in the same time long-life one.

In many cases, these extra pricey phones are essentially alternate, higher-end models. It’s less that the iPhone now costs $999 and more that Apple now sells an even higher-end iPhone model. The same goes for Samsung: while the Galaxy S10 starts at $900, a cheaper model, the S10E, begins around $750, and you really don’t miss out on much.


The downside of this trend is that, yes, you’ll now have to spend more than you did just a few years ago to get the absolute best phone out there. But the upside is that the phone you buy is likely to be nicer, and you’re likely to hold on to it for even longer. So unless you’re still buying the best every two years, you might not end up spending all that much more.

Also Read on TechDomes


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