Customers are Making Phones More Expensive

I can't help but feel that the article linked below is a propaganda piece from phone manufacturers, but there is a lot of truth to it as well. Back in the day when we went from a 4-inch to a 4.7-inch display, the cost of the upgrade was essentially free. It didn't cost $80 more for each new generation of device. Now that we are pretty much topped out on hardware, the screen and some materials are the basic differences between devices and if you want premium, you have to pay a premium price. As consumers keep forking out for the $800 phone, you can bet companies will add a few new materials or some other tweaks that justify the hiked price. If no one bought a $900 phone, there would never be a $1000 phone. Even though the screen is the biggest expense of a phone, do I really need an iPhone X crushing screen of 2960x1440 on my S8? I don't, but I do love the quality and was happy to get it. It's my fault basically. Sorry.

As consumers, we still have a wide breadth of options that can keep us satisfied without being at the absolute pinnacle of new technology. The Moto Z2 Play, the iPhone SE, the Honor 9, and a smattering of well designed ZTE phones can fulfill most people’s mobile needs (it’s not like Snapchat demands an especially awesome camera, right?) while costing a third of the price of an iPhone X. But the premium market is definitely drifting up, and we’re going to see more stratification than we used to have, even while things like dual-camera systems become table stakes for most devices. It’s going to be an uneven path forward, though the likelihood is high that we will continue to enthusiastically support phone makers as they make that shift.

Source: TheVerge