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Why smartphones are so expensive?

When value iPhone exceeded the psychological mark of $1000, many began to resent the fact that smartphones are getting more expensive every year, and the biggest innovations are almost there. And this applies to not only Apple, but Android manufacturers, whose equipment has always been regarded as a more budget option.

How expensive iPhone and Samsung?

The rise in the cost you see anyone who is even slightly follows the smartphone market. But before we look at its causes, let's see how fast prices rise.

Let's start with Apple. Below are the starting price of the different models iPhone in the United States and USssia. Special discounts and promotions operators were not considered.

  • 2014: iPhone 6⁄6 Plus — $650/750 (40/47 thousand)
  • 2015: iPhone 6S/6S Plus — $650/750 (57/66 Tr)
  • 2016: iPhone 7⁄7 Plus — $650/770 (57/68 Tr)
  • 2017: iPhone 8⁄8 Plus/iPhone X — $700/800/1000 (57/65/80 Tr)
  • 2018: iPhone XR/XS/XS Max – $750/1000/1100 (65/88/97 Tr)

Yes, in the last five years the starting price of the iPhone has changed significantly. But it is interesting that in the period from 2014 to 2016 in the US it is almost no rise. On the USssian market the first sharp rise occurred in 2015.

let's See what happened at that time with prices for premium smartphones from Samsung. For example, consider the simplest modification of the older model Galaxy S and the basic version of the more advanced plamenov. Their prices at the time of release in the United States and USssia were next.

  • 2014: Galaxy S5 – $650 (30 thousand rubles) Note 4 – $750 (35 Tr)
  • 2015: Galaxy S6 – $700 (50 Tr), S6 Edge — $770 (62 Tr)
  • 2016: Galaxy S7 – $670 (50 Tr), Galaxy S7 Edge – $780 (60 Tr)
  • 2017: Galaxy S8 – $720 (50 Tr), Galaxy Note 8 – $900 (70 Tr)
  • 2018: Galaxy S9 – $720 (60 Tr), Galaxy Note 9 – $1000 (70 Tr)

It is seen that in over 3 years – from 2015 to 2017 inclusive – the company has not changed its pricing policy relative to the younger version of the Galaxy S on the USssian market, although the technology used in smartphones have made significant progress.

What is the cost of a smartphone?

Prices for equipment (especially imported) are under the influence of various economic processes. An important role in the pricing of play, and other seemingly minor factors. Today, more and more consumers attach importance to the design, material of casing, bezremontnoy and colour display. For a manufacturer's desire to cater to consumer tastes entail high costs, so the cost of the product increases.

On the IHS website you can find information about the cost of the iPhone released over the past five years:

  • iPhone 6 — $185 (2014)
  • iPhone 7 — $200 (2015)
  • iPhone 8 — $255 (2016)
  • iPhone X — $370 (2017)
  • iPhone XS — $410 (2018)

As you can see, the cost of the iPhone from 2014 to 2016 growing at a slow pace. But after Apple started to introduce the unique and innovative technology, making one phone began to cost the company much more than before. And this amount is exactly factory production, but when you consider the cost of research, prototypes, engineering and design works, the cost of the iPhone work even more.

As the dollar affects the price of a smartphone?

The increase in prices is often due to the fact that the value of the dollar against the ruble is growing. First and foremost is the impact on the electronics, as almost all the equipment sold in our country are produced abroad.

In 2014 the average cost of $1 was approximately 38 rubles. Today its price is 67 rubles. It turns out that in 2014 the price of iPhone 6 in the USA would be the equivalent of 24 700 rubles. But if the dollar rose in price against the ruble, the starting price of iPhone 6 today would be 43 550 rubles, that is, 18 850 thousand more.

And if the iPhone X would take place not in 2017, and in 2014, the price of this advanced smartphone in rubles amounted to 38 thousand – 5.5 thousand cheaper than the iPhone 6.

As inflation affects the price of a smartphone?

As the Apple company of American origin, its pricing policy affects inflation in the United States. Since the release of the iPhone 6 took almost 5 years. The economy is a very short period, but it was enough that Apple has adjusted the prices of their goods. According to the CPI calculator, iPhone 6, which cost $650 in 2014, today adjusted for inflation would cost $685, or 46 thousand rubles according to USssian standards.

what about the overpayment for the brand?

We all know that for the USssian buyers of iPhone costs about 1.5 times more expensive than for Americans. Let's count some more. If the U.S. price of the iPhone 6 accounting for inflation today would be equal to 46 thousand rubles, in USssia he would have asked for 69 thousand at a price of XR or iPhone iPhone 8 Plus.

Is it because in some countries people are more willing to overpay for brand logos? Only partly. The price is formed taking into account many factors. What has the greater impact on the increase in the cost of mobile electronics is the dollar, inflation and rising costs of development and production. In addition, when exporting the producer has to take into account transport and customs costs.

So is it possible to say that the price of smartphones in recent years has soared only at the whim of brands, hungry for even more profit? No. The reasons for the rising prices difficult, and they have little to do with the desire of corporations to cash in on loyal fans.

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2 comment

  • I remember the distant past, bought the same TV 49-inch for 107т.R nowadays bought the OLED TV 65 inch for 129т.R with a lot of meat

    • But it still does not justify the very high prices of smartphones. Best to reduce the cost of production, but at the same time without deterioration of their characteristics.