Hate € 1000 smartphones? They are already reaching 2000 €! – Do you still remember when Apple launched the iPhone X at € 1179 ($ 999 in the US) in 2017? People were all crazy about the price of the device at the time! And what was the practical result of all this? It was 0 … It is that after 3 years, smartphones are dangerously close to 2000 €.
Well, a high-end smartphone has never been a cheap device, whether it is foldable, or simply has the best specifications on the market. You will always have to pay a high price to take it home! This is nothing new for anyone. Still, it's good to know what the hell is going on so that prices don't stop rising.
Hate € 1000 smartphones? They are already reaching 2000 €!
These incessant climbs turn out to be extremely strange, because the budget smartphone market is increasingly powerful with devices such as the Xiaomi Mi 9T, Mi Note 10, RealMe X2 Pro, etc … That bring performance, build quality and even quality photographic, at a relatively lower price compared to major brands.
Hate € 1000 smartphones? They are already reaching 2000 € !:
In fact, if you were aware of 2019 and early 2020, you know that the most successful smartphones on the Apple side were the iPhone Xr and iPhone 11. While on the Samsung side, it was the Galaxy S10e that gave the cards.
That is, even the leading brands in the market were more successful in the mid-range market than in the traditional ‘flagship’ market. So … Why do we have increasingly expensive models on the shelves?
Why did Samsung decide to give up its S10e, while launching a € 1579 version of its new super high-end Galaxy S20 Ultra?
Editor's Note – Attention! I'm not pointing a finger at Samsung, as if this were the fault of the price hike. It is a general phenomenon, from Huawei, Apple, etc … That we will try to understand in the next lines.
In fact, nowadays we can get our hands on € 200/300 smartphones, which simply embarrass € 700/800 devices from 4 years ago, and which actually even put some top of the range in tiptoes! A result of technological advancement in this market, and the emergence of new brands full of hunger to win.
However, even with the appearance of these BBB smartphones (Good, cheap and beautiful), in the last 3/4 years we have had a huge increase in the price of high-end devices. The latest example is the new S20 Ultra from € 1379, or even its 16GB version that reaches € 1579.
Yes, we all knew that 5G was going to bring a price increase! But according to what the market has been telling us, I don't think anyone was expecting such a scary rise.
This price hike is not sustainable!
If you don't know, the basis for the price of many of the most popular smartphones on the market has to do with the fact that in many markets (such as the North American) we have two-year financing, often with the possibility of switching smartphones on end of the contract without paying a fee.
So, in this type of system, a € 1000 smartphone is not much more expensive compared to another model of € 600 or € 700. However, even this type of system is now starting to crumble, with the ridiculous price increase of recent years.
It is increasingly obvious that Samsung is pursuing the idea of launching a new range of smartphones at € 2000! After all, the Galaxy Fold already surpasses this mark, and in fact, I would not be surprised to see an even more expensive Galaxy Fold 2 during 2020, with the promise of some technological innovations, and a much more appealing design. (The leaks already indicate that).
The problem is that here even the North American smartphone financing system will eventually collapse. Because while the price increase between a 1000 € and 600 € model is negligible, the increase from 1000 € to 2000 € is quite different.
Very briefly, it is very likely that consumers are not finding much fun in what is going on. And that very soon they begin to ask the classic question … But why do I have to pay so much? Why did we overcome the € 1000 smartphone barrier in such a short time, and we are already reaching € 2000 !?
Do I really need 12 or 16GB of RAM? After all, this is not a PC where I will open 30 Chrome tabs at the same time. Do I need mmWave 5G? Do I need 100x Zoom, when in reality I barely use the current Zoom I have on my everyday device?
Yes, it's true that we still have the S20 + at last year's S10 + price, and we also have the 'normal' S20 … But who wants the S20 + when we have the S20 Ultra smiling at us on the shelf? It is true that we have options, but it is also true that I very much doubt the legitimacy of these options tables in the current market.
The price increase at the top of the range makes users change their smartphone less often
Consumers are changing more and more smartphones (3 ~ 4 years), however, manufacturers continue to raise their prices more and more in order to get their hands on the same profit of the past, in which they sold a new model every 2 years.
It is basically a stick with two nozzles … That is, while prices increase, consumers are more cautious in each exchange, staying longer with their old device. Because in fact, any smartphone with 2 or 3 years is very capable of doing the job! Gone are the days when in this short period of time, a mobile phone went from high or mid range to ‘trash range’.
In fact, with the many improvements we have seen in security updates to the Android Operating System, and extensive access to repair centers, it is easier than ever to choose not to change your smartphone.
While prices in the high range continue to rise, competition in price and features will only continue to rise in pitch!
So, as I said above, we already have several brutal smartphones at 200/300 €. What is clear, I also made ourselves aware that we have an authentic gap between the new mid-range and the new super high range of devices.
Yes, it is true that the high range has always been much more expensive … But now we are facing a simple abuse of price difference!
In the past, with the money of a high-end smartphone from Apple, Samsung, LG or Huawei, we could buy 3 mid-range smartphones, but now we are entering the realm of 5 or 6 devices. Which, in my opinion, doesn’t make any sense… After all, while cheap mobile phones get better and better, at the same time they have to face fierce competition (prices are very competitive), the high range continues to increase and the make little gains in increasing performance and new features.
Hate € 1000 smartphones? They are already reaching 2000 €! – Besides, what do you think about all this? Share your opinion with us in the comments below.
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Since I was very young I became interested in computers and technology in general, I had my first PC at 10 and at 15 I built my first tower, since then I never stopped. Whatever technology is, I'm in the front row to find out more.