Credit: Robert Triggs / Android Authority
“The smartphone market has become saturated and consumers are holding onto their phones longer, so manufacturers are trying to get more out of every sale they get,” said Avi Greengart, president, chief analyst at Techsponential. “While this is opportunistic, it also reflects consumer demand: A smartphone is a significant long-term investment that is used more often and for more things today than it was a few years ago. It helps that in rich markets like the US, Carriers spread the cost over three years without interest. ”
There have been some setbacks. Greengart notes that phone makers have responded to $ 1,600 phones with great $ 800 phones. OnePlus is a great example of a player in this space. It’s worth noting that the best-selling phones from Apple, Samsung, and others are not their highest-cost offerings, but rather the most affordable rate, like Apple’s iPhone 11 and Samsung Galaxy A50.
You have what you pay for. Yes, we are talking about the actual hardware of today’s phones.
But, and this is a big but, you get what you pay for. Yes, we are talking about the actual hardware of today’s phones.
“The displays are noticeably larger and better than they were a few years ago, are covered with more impact-resistant glass, and are installed in cases with tighter tolerances and minimal bezels,” said Greengart. “The batteries are bigger. Storage sizes have increased dramatically. Silicon has grown to include application processors that compete with notebook computers in performance, more memory, and powerful chips for graphics and artificial intelligence. The phones have more antennas to work on more networks around the world, and often have half a dozen cameras along with depth sensors and components for biometrics and security. The most expensive phones have new technologies such as folding screens and hinges, ultra wideband modems, periscope, probe or LiDAR zoom mechanisms, or mmWave 5G modems and radio frequency processing. “
In other words: it all adds up.
It’s not just about the parts
Credit: Oliver Cragg / Android Authority
There is another factor to consider here: software. It is true that Google gives away Android at no cost, but that does not mean that the phone manufacturers escape without any problem. Consider Samsung. It puts tons of work into a user interface. Similarly, Huawei invests in EMUIs, just like LG, Motorola, Sony, Xiaomi, and any other OEMs in their own launchers and apps.
And then there are service offerings like Siri, Google Assistant and Bixby.
“If you think of artificial intelligence as an example, and the different ways it appears on a device and the cost it faces from the data center side,” said Carolina Milanesi, a technology analyst. “Clearly, not all providers have theirs, but I think it has affected license fees. Royalties could be another area where we would have seen an increase. “
Hardware vendors are unwilling to bear the costs of developing software and hosting data.
Hardware vendors are not about to bear these costs. They are surely passing them on to consumers in some way.
Milanesi perhaps put it best when she concluded: “Having a kitchen ‘timing’ in your hand will cost you.”
Will we see a pardon?
It’s hard to imagine smartphone prices going down. Instead, expect top-tier flagships to continue pushing the envelope, both in terms of what’s on board each phone and what the phone maker charges.
Those who can’t afford the $ 50 per month payments on $ 1,200 phones will simply have to resign themselves to the “iconic killers” who populate the $ 600 to $ 900 space. The good news is that there is no shortage of options there. Phone makers like OnePlus, LG, Xiaomi, and even Motorola and Nokia have produced solid devices that are as worthy of your money as the top-of-the-line Samsung Galaxy Note.
