Smartphone prices have risen rapidly at the top end. We look at the reasons why, and whether this is likely to continue.
The only sure things in life are death, taxes and rising smartphone prices, at least if the past few years are anything to go by.
From the likes of the iPhone 4 costing an average of around $500/£500/AU$860 in only 2010, to prices on some phones soaring over $1,900/£1,800/AU$4,500 now with the introduction of newcomers such as the Huawei Mate X and Samsung Galaxy Fold, it can widely be seen that the situation is becoming, on the surface, egregious.
But why has this happened? What has caused these changes, and how can we expect things to pan out in future?
According to Statista.com, throughout 2010 globally, 304.7 million devices classed as ‘smartphones’ were shipped. In 2018, we see that 1.4 billion units found their way around the world, a significant increase in anyone’s books.
The downside to manufacturers is of course, that almost everyone to whom an expensive smartphone can be sold now already has one, and is likely planning to hang onto it for at least a while. On top of which, the market is saturated with dozens of different players, both local and international.
As such, the game isn’t as lucrative as it once was, so what recourse do publicly-traded manufacturers have to meet the needs of shareholders?
Why, price rises of course — as can be seen in the difference between the iPhone 8 and the iPhone X, devices with many similarities but pitched very differently.
