Why modern phones are so expensive

It is no secret that smartphones are getting more expensive every year. A few years ago, it was difficult to think that the device on Android can cost more than 50 thousand rubles; now there are smartphones and over 70, and 90 thousand rubles! In fact on the rise in prices is influenced by many factors, we will look at some of them. But it is worth noting that you should not expect to reduce the cost of smartphones in the future.

Why expensive smartphones

The main cause of rising prices for smartphones can be called inflation and the economic situation in the country. For example, the smartphone, which in 2007 was worth $ 500 in 2019 in the United States already is 634 USD due to the annual 2% inflation. The economic situation directly affects the currency exchange rate is one of the main factors of pricing. And it concerns not only mobile devices.

Another factor is the dumping. On the background of the manufacturers, which sell their smartphones at deliberately low prices, devices, the rest already seem to be expensive. In our Telegram chat often think of the OnePlus One, which at the time was $ 300, when the flagship was valued at $ 600. The company are dumping prices in order to attract customers.

The new brand needed a base of customers, so an efficient method is dumping. However, the Golden age always comes to an end, the Finance corporations are not infinite, and gaps need to be filled with something, this will entail in the future rising prices.

Another reason is new technology. Of course, the innovative and advanced features are needed, and manufacturers are trying to provide smartphones with a better experience. However, new modules, 3D facial scan, a fingerprint scanner below the display, the unique shapes of the buildings and displays, special gradient colour, artificial intelligence — all this dramatically increases the cost of smartphones.

Read also — What is graphene battery and why it is needed in a smartphone

The psychological factor

Now it seems that 40-50 thousand rubles for a smartphone is expensive. But I remember in the early 2000-ies got his first phone Siemens: then it cost 6 000, and it was a high price for a mobile device. Now for the money you can buy a tolerable Android smartphone that will be able to do good shots, pull the middle of the game and will become a Navigator, a communication tool, and many others. My Siemens max was able to make calls and send SMS and from the games there was a sort of “cubes”.

The same Siemens

Obviously, expect reduction of prices on a flagship model is not necessary, as will soon get the popularity of the folding apparatus, the production of which is significantly more expensive.

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