2017 was a bumper year for smartphones. It will be remembered primarily for the addition of the bezel-less displays on flagship phones. Samsung released the Galaxy Note 8 and it was crowned the best phone of 2017. Apple wasn’t in a mood to lag behind and so, it launched the iPhone X. Do you know one similarity between these two devices? They were ridiculously expensive.
However, tech enthusiasts were ready to fork out their bling, even at those exorbitant prices. In fact, this increase in price didn’t prove to be fatal for both the flagship phones. But it did make one big change to the company’s bottom line: the average selling price skyrocketed.
According to a published public data, the average sales price for smartphones increased by eleven percent year-on-year in the last quarter of 2017. The vast majority of smartphones didn’t actually get more expensive, which brings me to one logical explanation: the iPhone X (priced at $1,000) and Galaxy Note 8 (priced at $930) caused that average price increase.
We were used to the traditional price of a flagship smartphone oscillating between $600 and $700. However, in 2017 the trends shifted a little. Even the other “affordable” flagship phones saw a price increase, take the Google Pixel 2 XL at $849.
Obviously, there is more to them than what meets the eye. Smartphone prices increase depending on the materials used and features crammed under the hood. OLED screens are much more expensive than the LCD ones, while advanced sensors like the TrueDepth camera on the iPhone X add up to the cost.
Nevertheless, it seems that larger flagship smartphones with larger edge-to-edge OLED displays, vibrant colours and top of the range cameras attracted consumers to purchase more expensive devices.
Are flagship phones destined to have see an exponential increase in their price?
The good news is that companies like OnePlus exist. Its smartphones come with impressive specs at a reasonable price. Recently, Xiaomi dethroned Samsung in India. The data speaks for itself and we can see that the company serving the mid-range consumers actually earned the maximum market share.
Does it mean that the expensive flagships would just limit themselves to financially elite consumers? How much are you ready to spend on a smartphone? Let us know in the comments section below.