You get the iPhone, I'll get the mortgage: the rising price of smartphones.

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• You get the iPhone, I'll get the mortgage: the rising price of smartphones.

The only certain things in life are death, taxes, and rising smartphone prices, at least in recent years. Since the iPhone 4, the average cost was around $500 / £500 / AU$860 in 2010 alone, at phone prices above £1,900 / £1,800 / €4,500 with the introduction of newcomers, like the Huawei. Mate X and the Samsung Galaxy Fold, the situation can generally be found to be getting brazen. But why did this happen? What caused these changes and how can we expect things to happen in the future?

The iPhone X is a premium phone. Image credit: LaComparacion

Offer and demand

According to Statista.com, during all of 2010, 304.7 million devices classified as "smartphones" shipped. In 2018, we find that 1.4 billion units have made their way around the world, representing a significant increase in the number of books. The downside for manufacturers is, of course, that almost everyone who can afford an expensive smartphone already has one, and probably plans to keep it for at least some time. Furthermore, the market is saturated with dozens of different players, local and international. As such, the game is no longer as lucrative as it once was, so what resources do publicly traded manufacturers have to meet shareholder needs? Why, prices go up, of course, as can be seen in the difference between the iPhone 8 and iPhone X, devices with many similarities but very different in tone. By increasing the cost of getting into an iPhone X, each unit sold generates a higher return, a perfect short-term solution with major long-term implications.

The Samsung Galaxy Fold takes pricing to a new level. Image credit: LaComparacion

A folding dream

But it's not just companies that are improving the profit margins of their devices. What do Galaxy Fold and Mate X have in common next to a high price? Both are by-products of millions spent on R&D. What defines the Huawei P30 Pro? A camera zoom unit created by teams of engineers working near the top of their art. Building a high-end smartphone in 2019 requires premium materials, labor, advanced software expertise, and more – the consumer expects it all. And for everyone, there's a sharp increase in prices, an increase that needs to be sent back to Joe Public. Not to mention essential marketing spend and the evolution of the global economy. Whether it's currency depreciation, trade wars, inflation, or otherwise, development and manufacturing costs are only going up, and are likely to continue to do so at least for the foreseeable future. A flawless, steel-faced iPhone looks like a jewel in your hand, with a high-end OLED screen, amazing camera and powerful chipset it's a beautiful dream. However, it is also expensive for the manufacturer and the consumer.

The Samsung Galaxy S10e is a "budget flagship." Image credit: TechRadar (Image: © TechRadar)

The shape of the future.

Thus, the price of manufacturing rises, the world market shrinks, and the rewards of ongoing research and development spending become less and less frequent. What does it mean for the average Joe? Market saturation has changed the idea of ​​what a "smartphone" is. Luxury in 2010, embodied by the "cult" of the iPhone, the smartphone is now owned by everyone and their grandmother. They just aren't special anymore. And with budget phones getting better and phone makers getting better at selling them, it's getting harder and harder to explain the reasons for the premium. In trying to give people reasons, manufacturers must spend more and more money in the hope of making a phone that stands out, while offering alternatives to those who will never be convinced. Thus, in 2019, we witnessed the birth of the foldable phone and the beginning of the "budget star", with devices like the Samsung Galaxy S10e. As more and more opportunities to define versions based on specific prices are seized, the fragmentation and trivialization of the smartphone space will continue, as will the laptop market in the United States. since the mid-2000s. And during this time, this higher price range will continue to increase, to infinity and beyond.