Expensive cell phone: why is this phenomenon becoming common in 2019?

Whenever we think about switching smartphone A thought comes to mind: “should I invest in a expensive cell phone?” We all know that the price will vary greatly depending on the specs you choose, but why are these devices at an ever-increasing market price? Are models sold over R$3.000,00 really worth it?

Will it be the new screens? Are some parts really more expensive? Is inflation “at fault in the registry office”? Or are other factors influencing current cell phones to be more expensive than in the past? In fact, some points directly influence this, and you can see them below:

Postpaid plans became less popular

When smart phones first came into the world, the price at which they were sold really scared some people.

But for the products not to be stopped in the stock due to the high value, companies like T-Mobile (American cell phone operator) started selling plans in which new models were offered “free” or for a price much lower than the real one.

But the truth is that this expensive cell phone never cost just that price. And we don't need to know much about technology or operator plans to be able to say that. Basically, when I bought a smartphone the person continued to pay for the product, but the amount was included in the postpaid plan monthly fee.

We cannot say that this business plan is bad, as it allowed new models to reach the hands of those who could not afford one. expensive cell phone in cash.

But people who were adept at this began to realize that they paid almost for two models, since there was a contract that bound them to the plan. It was at that moment that postpaid plans ceased to be successful.

When contracts were terminated, people did not renew for a simple reason: they paid a lot for a product that “got old” in just over two years.

This made it easier to pay for a expensive cell phone for the true market price he had instead of opting for a plan that tricked you by offering a false price.

With this thought in mind, postpaid plans are no longer popular. But there are other reasons cell phones are getting high.

Companies acted to continue selling

With time passing and models getting more and more advanced (materials and screens increasingly resistant), people stopped changing cell phones so often. To give you an idea, in 2011 (time when the iPhone 4s), one in three Americans owned a cell phone. That number has increased since then.

In 2016, for example, there was a smarphone in the hands of 3 out of 4 Americans. there is a lot more smart phones on the market and it causes an increase between model switching. That's why companies chose not only to improve their older generations, but also significantly increase the price and sell a expensive cell phone.

If before people used to change their devices every 2 years, this is increasing more and more (now it takes 3 years on average, excluding people who make a point of changing their cell phone once a year).

This thinking by consumers directly influenced the annual revenue of companies, so most (if not all) of them have further increased the proportion of profit they derive from their products.

Companies must continue to maintain their research laboratories for the development of products such as Galaxy fold e iPhone X continue to be developed, and sales are the biggest source of income for companies.

Using real facts, in 2016 the Apple presented a deficit of 20% in its sales. We are sure that this fall in prices has not only affected the company that was founded by Steve Jobs, and for that reason it was time to raise prices.

expensive cell phone it's a source of revenue for many companies, and they love it. And finally, there is one more reason for us to pay more on a cell phone.

Models are getting more powerful

As we said, consumers are taking longer to change their cell phone, which has made companies start to innovate more and more, and as a “consequence”, increase prices.

Developing an innovative product takes time and investment. And not only the parts are included in the “investment”, as costs such as research laboratories, salaries of employees (those who manufacture and those who sell) are also calculated when pricing a cell phone.

And you don't have to look too far into the past to realize how much smartphones changed (obviously for the better) with the arrival of new technologies.

RAM memories are getting bigger, processors are making cell phones faster and with less and less (actually almost zero) “chokes”, not to mention the screens that are getting better and better. Have you realized that flexible screens are a reality?

And see how the price influenced the quality of the device: in 2010, manufacturing a iPhone 4s cost about US$ 188 (R$ 736,00 in direct conversion) and the iPhone XS Max, last year, US$ 390 (R$ 1535,00). The leap in technology in less than 10 years was enough to say that the price we pay for a good cell phone comes with a large share of benefits.

But is it really worth investing in an expensive cell phone?

If you choose to buy a high-end smartphone, you will be considered a person within a minority that still consumes products from this market. This is because most of the models that are successful in Brazil do not exceed R$ 2.000,00.

But if you really opt for the best models of the brand you have chosen, be sure that your purchase will not be wrong, that's because these models have high durability, battery that gives you autonomy to stay away from a socket for hours (and even a day whole), processing that was the envy of many computers of the past and a screen that delivers images close to reality.

You don't just buy one expensive cell phone, but a package of functions and utilities that will be useful in your daily life, since technologies are increasingly present in our routine.

Source: The Verge