price rise

The last three years have witnessed a big jump in the prices of smartphones, especially the top-class phones. The $ 500 to $ 650 that was enough to buy the best phones with new technologies and features is no longer enough to buy the cheapest to become the usual price for top-class phones from $ 900 to $ 1,000. The $ 1000 barrier is no longer the impossible figure for iPhone XS Max up to $ 1500, while Samsung’s folding phone starts at $ 1980 while Huawei sits on the top with its Mate X folding phone at $ 2600, 4 to 5 times the average price of top-class phones A few years ago

what happened? What is the reason for the rise of phones in this way? Are companies using their users or are they right? Many questions always revolve when buying a new phone we will answer you today in the following lines.

New gear techniques

The phone specifications are one of the most important reasons for the high prices of smartphones not only for their development but because of the vast amount of companies in the search and testing before the availability of any technology, and let us at the beginning of our subject to take a look at the most prominent changes in smartphones during the past years precisely since 2013 to date.

The first radical change since then is the volume and screen size of the phones themselves. The 4 to 5-inch screen, which some considered to be large, is no longer available, and the conventional has become the average 6.4-inch handset without any indentation. The TFT screen that dominated the handsets of this class no longer existed and was replaced by IPS and OLED screens, which cost companies vast amounts of development to reach us as they are now, some of which come with curved or folding edges.

CPUs, huge internal storage space, artificial intelligence development, massive battery capacity, fast charging, wireless charging, 4G support, 5G generation and a large number of cameras are all nonexistent. , Even ways to protect the phone as we no longer use utterly different Pattern, which was a breakthrough in the ease of opening the lock screen, and now we rely on fingerprint sensors, fingerprint, fingerprint, fingerprint and even look at the phone by facial recognition.

price rise

Inflation

Well, I do not want to go from talking about technology to talking about the economy, but when we talk about money and comparing product prices over the years, the essential factor to be considered is inflation. For those who do not know, rise means a reduction in the purchasing power of money over the years, meaning that the commodity you bought in 2010, for example, at $ 100 would now be more expensive because of inflation without any change.

For many reasons we will not discuss them now, the inflation rate of the US dollar hovering around 2% per year, which means that the $ 100 commodity will be the same at $ 102 after just one year. You may see it as ineffective and straightforward, but you are wrong. For example, in 2013 Apple introduced the iPhone 5s at $ 650 and was by far the most expensive smartphone ever, if Apple wanted to offer a phone of the same value, but after five years in 2019 the price would be $ 728, a price close to the iPhone XR launched last year taking into account the big difference between them in all other respects.

The above example shows that inflation is a significant reason for the rise in prices of smartphones in general and that a good part of the increase in prices.

The value of the company and its name

iphone

An essential part of the price of any phone is the name of the company on which it is written. Apple phones do not have the new technology for their real cost, but they have the Apple brand that is not even covered by phone covers. The corporate brand and name on phones have become something that a large segment of users are looking for, becoming a measure of the physical and living standard of many.

Apple is not the only company to raise the price of its phones because it bears its name, but Samsung, Huawei, Sony, HTC and the vast majority of companies with a brilliant designation in this market be part of the price of the phone only for the name of the manufacturer. This can be seen not only in Apple phones in general but in Samsung phones in the last two years in the middle class where they were offering phones with the lowest specifications compared to their competitors and at the same time were the most expensive phones because they were carrying the company logo.

By the way, Samsung’s name in the smartphone sector is the only factor that has enabled it to maintain its position as the world’s largest smartphone manufacturer in the past two years before returning to the right path this year with its new medium and economical phones.

luxury

We talked about the previous point about the name of companies and its impact on telephone prices, which we can also include under the luxury item, but at this point, we will talk more about this concept. Back at the beginning of the decade, the competition between the principal developers of smartphones was about providing the best new technologies for phones, where we saw a period of development between every phone of the same series. Now that the growth of smartphones has slowed down, Users in providing different types of luxury in their new phones as an attractive incentive for users.

With the comparison of smartphones in the past and now we find that the majority of the phones in the past were made entirely of plastic and phones with a metal object luxury and useless, now the phones have a metal body is not desirable because it can be exposed to cracks and became phones with glass body It is best that phones with a plastic body are defective in that category.

Huawei

The development of the types of glass used in the phones certainly and manufactured to be a high degree of hardness and does not break from the most straightforward collision will cost users more money. The same can be measured on the design of phones. Users prefer one phone to another because it has fewer edges or because the screen size of the top screen is smaller or because the telephone appears more glossy and looks like a mirror.

The availability of phones in all of the above mentioned not only increases the cost of manufacturing phones but also justifies for companies to raise the price of their phones because users have been evaluating these improvements excessively.

Age of phones and the number of units sold.

In the past two years, the smartphone market has witnessed a decline in the number of phones sold globally for the first time since the beginning of the manufacture of phones in general, which positively affected the phones of the top category. The development of smartphones is slower than in the past, as is its performance, particularly in top-class phones, which prompted users not to think about upgrading constantly. The user can now spend up to 3 or 4 years without upgrading their phone to a newer version.

This is easily noticed on Apple phones. The company’s most popular phones are the iPhone 6 and the iPhone 6s, which were launched in 2014 and 2015, respectively. This means that users of these phones did not consider upgrading even after 3 to 4 new generations of phones Company.

Apple’s inability to attract those users to buy its new phones put it in crisis for its annual profits to have one good – to increase the price of its phones to compensate for the decline in the number of units sold at the expense of higher groups. Apple is not the only company that has taken this step. All the companies offering top-class phones have made the same path, especially with the growth of the middle-phone segment and its impact on other sales.

i phone

In the end, we can see the reason for the rise in smartphone prices over the past years, a combination of ideas shared by users, companies and various economic factors. Unfortunately, if none of the reasons we have mentioned, it is difficult to stop the high-class phone price hike, which may soon lead us to prices we never imagined. During all these intertwined issues, we, as users, should not stick to advertising campaigns and buy phones that meet our needs, eliminating the concept of “getting the best,” which will not last as long as just months before companies make a small touch on their next phone, what is unmatched.

This was our view of the reasons for the high prices of smartphones, what do you think? Do you believe there are other reasons for increasing rates?
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