Some years ago, a decent phone with good carrier subsidy used to cost $500 at max. But now good brands like Apple and Samsung phones cost twice of the essential cost. All phone price has increased in recent years with the development of technology. Several business reports suggest that a hike in phone prices have reduced the sales for branded phones like Apple.
The best phone makers like Apple and Samsung have seen a hike in their phone price due to the rising demand for their product. A customer with a reasonable budget and preference for the high-end phone may give away hike price phones. However, for average middle-class customers, these heavily priced phones are not desirable.
In recent developments, we have seen that many Chinese phone makers are introducing their phones in the global market. They are keeping their rates reasonable and offering all the features that Samsung and Apple are offering at premium prices. This has resulted in a decline in the sales chart of the big brands.
Reasons behind all phone price increase
Better build up quality of the phone
The build-up quality of phones these days are better than before. The companies use better materials like steel to make the durable build of the phone. Brands have also introduced the phones with a sturdy build quality that keeps your phone safe, waterproof, and away from damage.
Latest Technology increased all phone price
The latest technology does not come cheap. If you want a phone with the latest technology and high-end phone configuration, then you need to spend money. The phone users these days need high-end phones for their daily work. The phone should be able to multitasking. All these features cost companies which reflects prices. If you need a phone with a better specification, then you should be ready to burn a hole in your product.
The flagship phones from big mobile phone brands create a benchmark for the customers in the market. A customer may ask the vendor that I need a phone like the iPhone but with a reasonable rate. Everyone likes buying new phones with useful features and looks. The flagship phones used to charge less for the phone in early times. But now with the decline in phone contracts, the mobile companies had to increase their prices in the market.
To attract premium customers
With the sales strategy like that of Apple, many mobile companies are in the race of price wars. They keep the high price so that they could attract premium customers with high standards. The price keeping strategy of Apple has influenced many mobile companies. The pricey mobiles are in demand these days among professionals and students. It also helps the company to count their profits and capture the capital market.
The only negative consequence of high price phones is that they become useless after some time. Moreover, customers pay more than required, which is not suitable for the economy. The mobile makers should price their reasonably and according to the margin of profit.