Why iPhone and Android Phone Prices Will Get Even Higher (cnet.com)

Critics scoffed Apple when the company priced the iPhone X at $1,000. But the way the market has responded to it, there is a good chance that the upcoming flagship smartphones from Apple and those of its rivals -- Samsung, Google, and HTC -- will be pricier. From a column: The critics were wrong. Apple CEO Tim Cook said in July that the iPhone X had outsold every other Apple device in each week since it went on sale Nov. 3, 2017. With strong iPhone X sales, Apple proved that mainstream buyers are willing to pay almost as much, if not more, for their cell phones as they would for a powerful laptop. And with rumors of an even pricier 2018 iPhone X Plus-style phone coming down the pike this September, Apple's moves to usher in the era of the $1,000 phone may just be getting underway. Apple isn't alone in boosting mobile phone prices ever higher. Creeping prices on high-end handsets from Samsung, Huawei and even "value" darling OnePlus signal that price hikes are here to stay. In just two years, the cost of Samsung's Galaxy phone for US buyers has spiked 15.1 percent from the Galaxy S7 in 2016 to this year's Galaxy S9, while the Huawei P series has climbed 33 percent since 2016 -- and that doesn't even account for the existence of a "Pro" model. [...] The trend of increasingly costly handsets in the top tier underscores the cell phone's importance as an everything-device for communication, work, photography and entertainment. And as processing power, camera technology, battery life and internet data speeds improve generation after generation, the value people attach to a phone is sure to swell.

Comments

Why SOME phone prices will go higher

[geschbacher79]

To me, the most interesting development in phones has been the incredibly value in the sub-$300 price, as evidenced by Motorola's various phones, Huawei, Honor, OnePlus, etc.

At the top end, perhaps prices will continue to climb but that certainly doesn't imply all prices will increase. The top tier phones will be luxury items for a certain segment of the market, but the overall trend in terms of phones being shipped has been the amount of value being delivered in the and mid and low price tiers, and that should be heart-warming for consumers. That $1000 phone might be better or the best, but it won't be $700 better than the Moto G6 or similar phone.

Re:Why SOME phone prices will go higher

[Anonymous Coward]

The flagship phones have a high profit margin and do seem overpriced when compared to their BOM. (Especially when you look at apple!)

Keep in mind, though, that the raw cost of the phone's parts is just part of the picture. The big vendors put a lot of development, support resources, and generally focus more on their flagship devices. The flagships phones generally provide a better end-user experience because the entire ecosystem will gravitate towards creating a better experience on those devices.

It probably won't be that way forever. Android continues to improve and the big Chinese phone makers get better and better at their craft at an astonishing rate. The mid-low end smartphone market has revolution every 6 months. At some point even the cheaper phones will have enough cpu and memory to let more advanced versions of android abstract away nagging compatibility and performance issues. (Much like the 90s and 2000s saw an explosion of wintel PC clones that became utterly ubiquitous)

Re: Why SOME phone prices will go higher

[Kristoph]

You can buy an iPhone and replace it every year, selling your current version for $150-200 less then itâ(TM)s purchase price.

I spend more time with my phone then with any other electronic device I own so $150-200 a year seems like money well spent.

Re:Who is buying these things?

[ranton]

Most people I know have decided that all the selling points of flagship devices aren't really that big of a deal and are buying cheap phones that can browse, take some crappy pictures, and do messaging.

My wife and I buy the nicest phone available every other year almost entirely for the camera. We like not having to carry a separate camera for photos of our kids, and it's worth an extra $50 per month for us both to have the best camera phone money can buy today, instead of what the top of the line was 2-3 years ago. There are plenty of other nice things about having the best phones available but the camera is the main selling point.