If you’ve heard anything about the amazing new phones to be released by Apple and Samsung, then you’ve probably also heard about the absurd price tags. Samsung’s Galaxy s8 will retail at around a $750 starting price, while the newest model of the iPhone is expected to hit the market at an astounding $1000. This massive increase in the price of flagship phones has been cause for concern for those that have to have the latest and greatest device. The internet was flooded with questions about the new phones features and upgrades but the majority were based around their exorbitant price. It seems that everyone is now asking if any phone is really worth such prices.

 

There are any number of reasons why these prices are set so steep and they range widely in complexity. Some of the added cost has been attributed to a shift in the demand for top tier phones. Now more people are content with mid-range phones which means less of a demand for the newest releases. The companies are compensating for the decrease in sales by upping their price. Aside from this, the phones are being made out of higher quality materials with more expensive components,thus increasing the price.  

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The technological advances in handheld devices are what drive sales but dual cameras and high-performance displays aren’t cheap. It has been said that the new Galaxy device is made with durable materials and sophisticated components. This has been Samsung’s reasoning for the cost and it is primarily attributed to their research and development. Apple has said the same thing but with the added cost of buying product from Samsung.

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The Galaxy phones have been using an OLED screen display as opposed to the older LCD screen. It increases the quality of the phone but Samsung is the only supplier that Apple has for these screens. Being the only supplier lets you set your prices higher, making Apple eager to find other sources. Of course, new advances in technology can come at a price but economically, technology prices will typically drop as the processes of development become more efficient. Some are wondering though, if top suppliers are only pushing the limits in price for a higher payout.

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It is possible that these devices are so much more advanced than their predecessors that the spike in price is warranted, however many people may not ever have a need for these additional benefits. It would seem that far more people have begun to search for used devices and older models rather than paying the increasing cost of a new phone.

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The mid-range market for cell phones has grown significantly and there are many cheaper options that may not have the full range of capabilities, but have all of the essentials. This push towards used devices would be a problem for tech companies, if they hadn’t already planned for this. As most phone users know, they must be replaced rather frequently. Most mobile devices are only meant to have a lifespan of about three years. By this point the technology is outdated but many users find that their battery succumbs well before then. Apple began using unserviceable batteries that cannot be replaced and Samsung followed once they realized the potential in the business model. If the battery fails after the warranty expires, users must get a new device or pay the company to service it. This policy combines with other parts that aren’t meant to be fixed leads to more money in their pockets. Software updates that only extend to certain generations will also limit the lifespan of many phones because they cannot be updated further.

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A prime example of this was Apple’s announcement that the iOS 11 update will not support any generation earlier than the sixth.  It isn’t fair to assert that companies like Apple and Samsung are just riddled with cases of corporate greed, but it is important to be a well informed consumer.

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If you feel that you need the newest in mobile tech advances, then these may be worth it for you. Most of us could easily get away with lower tiered phones and still be happy. The next generation of phones is here and they are truly extraordinary pieces of technology, but remember that not every person needs the next big thing.