Flagship phone prices have increased significantly in 2020 compared to previous years. Well, what’s the reason behind this?
As we all know, flagship phone prices have unfortunately increased in 2020. The reason behind this price increase, which was between 100 and 200 dollars compared to 2019, was initially shown to be coronavirus. Well, can a virus alone increase prices that much?
We used to see very few phones in the flagship segment. Firms could save the year with their sales in this segment. However, with more than one player entering the market, the slices taken from the cake shrank. In fact, prices would break for competition. However, prices in this sector suddenly increased. Because a company pulled the price to the $ 999 band and other competitors followed it. Yes, we are talking about the forgotten iPhone X by saying 999 dollars. Apple ignited this work, other companies also fueled this fire.
Apple actually implemented a great strategy at this point. When its competitors moved to the $ 999 band, Apple suddenly pulled the price to $ 899. Thanks to this, interest in the Cupertino company increased and iPhone sales exploded. The fact that the iPhone 12 sells all over the world depends on this. Who would want to buy a phone that doesn’t know if it will get an update for $ 999? With the $ 899 monster across the road? Here Apple was again Apple and trapped its competitors.
Apple threw a fishing line, but Samsung did not!
There is only one company that does not fall into this trap and that is Samsung. Samsung’s flagship models are available starting at $ 899. However, other Android phone manufacturers are already pushing the $ 999 band. We will probably see the $ 1,099 band in the flagship segment towards the end of 2021.
Samsung and Apple are launching new flagship models to compensate for market gaps caused by the increase in prices of standard flagship models. At the same time, the processor and related core functions are not compromised. Thus, the product offers almost the same experience as top model products for most daily tasks.
Another factor in the price increase is the increase in processor costs in the 5nm manufacturing process. Firms naturally reflect the loss they cause from processor supply to the prices. In addition, the introduction of 5G technology also had a great impact on the increase in prices. However, when 5G becomes widespread, we think the prices will decrease to the desired level.
This would not have been the case if the coronavirus had not appeared. In fact, the prices of foldable phones were expected to fall to the level of $ 1,399. However, this did not happen and prices were barely kept at the same level.
We do not know what awaits us in 2021. So it’s early to comment on prices for now. If the effects of the coronavirus continue, companies will have difficulty keeping prices constant …