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Why are mobile phones more and more expensive?

29 views Yuda Electronic (HK) Technology Co.,Limited. 2018-08-10

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Last year, after the release of the Apple iPhone X mobile phone, its price of more than 1,000 US dollars caused dissatisfaction among consumers. In the past, the price of Apple and Samsung was only about $700, and the price of a typical mobile phone brand was only about $500. With the advent of the iPhone X, the price of the entire mobile phone has been upgraded to a new level.

 

However, if you look closely at the flagship mobile phone in the past two years, you will find that in addition to Apple, Samsung and Huawei are rising, and even the price of low-priced Xiaomi has risen a lot. The flagship machine price increase is very obvious.

 

According to CNET news, in just two years, from the Galaxy S7 in 2016 to the Galaxy S9 this year, the price of the Samsung Galaxy phone in the US has increased by 15.1%, while the Huawei P series has increased by 33% since 2016. The biggest leap belongs to the one plus mobile phone. Since 2016, its price has soared 32.6% in the US and 42.6% in the UK.

Although there are many cost-effective models on the market, they can’t conceal the trend of rising mobile phone prices. In the face of rising prices, users will inevitably have doubts, why are mobile phones more and more expensive?

 

Increase in materials and R&D costs

 

The current mobile phone components are significantly higher than before, such as dual cameras, fingerprint sensors and so on. Since the beginning of the previous year, the necessary components such as the screen, memory, storage and optical sensor components of smartphones have increased in price. Taking memory card as an example, from the second half of 2016 to the present, its increase has exceeded 20%. In addition, in order to meet the needs of users, manufacturers have increased their investment in research and development.

 

User usage trend

 

Smartphones now have a significant demand for quality, and consumers are paying more and more attention to brand and service experiences. Now more and more people are more willing to spend more money to buy better mobile phones and enjoy a better experience.

 

With the advancement of time, the development of smart phones has been almost 10 years, and various mobile phone manufacturers have attracted a large number of fans. The brand effect has also become one of the factors that increase the price of mobile phones. As the leader of the mobile phone circle, Apple’s brand effect is self-evident, and it also uses the most cutting-edge technology. If you think about it, iPhone X will not be so expensive.

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