Why Do All Company Mobile Phones Prices drop? - allphoneclub.com

Why Do All Company Mobile Phones Prices drop?

Why Do All Company Mobile Phone Prices drop After Some time?

The mobile phone is a craze these days. In today’s world, you cannot imagine to live without a smartphone and Internet. It has developed a habit among phone users. A study shows that a person spends 90% of his awake time on the phone. Whether its work or personal, the mobile phone has handled everything. But have you considered as to why all company mobile phones prices suffer decline after a specific time?

There are numerous mobile vendors these days. They offer a massive variety of mobile phones from various companies. You can have ample choices for the phone in the market, which suits your preference and budget. A simple smartphone with essential features and the camera is available for a cost which is less than the cost of a new pair of jeans.

Why Do All Company Mobile Phone Prices drop After Some time?
Why Do All Company Mobile Phone Prices drop After Some time?

However, with high competition and a variety of features, people buy expensive and cheap smartphones every time. The price cut in all companies mobile phone prices is a normal phenomenon after some time of launch. The main reasons contributing to the events are-

Technology Change leads to all company mobile phones prices drop.

With the fast evolving world and change in technology, people crave for more. Even the companies launch smartphones in the market twice a year with different features or technological aspects. As the technology ages, the features of the mobile phone also ages and lose its value. The price drops and cuts in the mobile industry are very reasonable. In fact, the price drop is faced by the companies in a couple of months only.

When a potential customer goes in the market for buying a phone; he looks for new technology and a new phone in the segment. This leads to a less demand situation for the company. And to clear the stock, companies start selling phones at reduced prices.


Competition in the mobile phone industry is cut throat. With a large number of mobile producers, there is a large number of vendors of mobile phone. Everybody has a smartphone these days. Hence, the company brands keep competitive rates for the phone. Due to competition, phone makers can no longer keep premium rates for their phone. This results in the price drop. If the rival company launches the phone with similar technology and less price, the brand tries to offer deals to the customers so that their phone has to sell capability in the market.

Why Do All Company Mobile Phone Prices drop After Some time?
Why Do All Company Mobile Phone Prices drop After Some time?

Market share of the product

Not all phone launches succeed. Some of the launches are a failure and results in losses to the companies. In such a scenario, the companies with huge stock of mobile phones start offering the pieces to the vendors at reduced prices. Sometimes, the technology used in the making of the phone is cheap. And the company tries to identify the mistake by offering the phone at reduced prices.

Mobile phone industry has a very volatile market. The price of technology keeps declining as there is a change in technology. We have experienced this in real life. iPhone 4 and 4S have immense price drop with the launch of better technology phones like iPhoneX.

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