Smartphone prices are so high that users are lazy to upgrade phones

Although giants like Apple, Samsung and Google have priced their new smartphones at around $ 1,000 in the past two years, research shows that such prices are “too high” for most people.

As prices rise and smartphone sales plummet, companies like Apple, Samsung and Google adjust their smartphone pricing strategies.

Although giants like Apple, Samsung and Google have priced their new smartphones at around $ 1,000 in the past two years, research shows that such prices are “too high” for most people.

Recent market research by NPD Group shows that less than 10% of people in the US spend more than $ 1,000 on new smartphones.

This research is the latest evidence that technology companies have difficulty persuading people to upgrade new equipment every year when they raise prices. Market research firm Kantar Worldpanel reported in 2018 that the average lifecycle of smartphones has increased by about two months from 2016 to 2018, suggesting that people kept their devices longer before they upgraded. grant.

Global smartphone sales in general are also struggling. The smartphone industry has had 7 consecutive quarters of declining sales, until the third quarter of 2019.

Some of the world’s most influential technology companies have changed their smartphone launch strategy. In 2019, we saw a series of “less expensive” smartphones launch, such as Samsung’s $ 750 Galaxy S10e, Google’s Pixel 3a cost $ 480 and the iPhone 11 cost $ 700.

Smartphones were not so expensive before

The $ 1,000 price suddenly became the “common standard” for leading smartphone models as products were equipped with advanced features such as facial recognition, an almost edge-to-edge screen and a triple-lens camera. glasses.

Apple launched the $ 1,000 iPhone X in 2017, but before that, its flagship iPhone 7 cost $ 650 or $ 770 for a larger screen and two cameras.

The same thing can happen to Samsung: Although the 2016 Galaxy S7 costs about $ 650, the Galaxy S8 starts at about $ 720 in 2017 – not as expensive as the iPhone X but nonetheless more expensive than the people. Predecessor.

This year, Samsung’s flagship Galaxy S10 starts at $ 1,000, while Apple’s iPhone 11 Pro starts at the same price.

Apple, Samsung and Google all have new strategies

As prices rise and smartphone sales plummet, companies like Apple, Samsung and Google adjust their smartphone pricing strategies.

For example, Apple launched the $ 750 iPhone XR alongside the iPhone XS and iPhone XS Max worth $ 1,000 last year. And in 2019, Apple positioned the $ 700 iPhone 11 as its new flagship device, while other models were more expensive than $ 1,000 and had a triple-lens camera designated as the “Pro” version. That could be interpreted as Apple acknowledging that the $ 1,000 smartphone is not for everyone.

Samsung has also launched a cheaper Galaxy S10 version this year, which is the $ 750 Galaxy S10e, a smaller version of the S10 that lacks some features like an in-screen fingerprint sensor.

In May, Google released a cheaper version of the Pixel 3 called Pixel 3a, which starts at $ 480 and comes with some of the same features as the Pixel 3 2018.

In fact, launching more than one flagship smartphone is not new to companies like Apple, Samsung and Google. But before 2017, Apple and Samsung often launched two smartphones of different screen sizes, recently they have moved to launch more devices at different prices, appealing to many people. Financial budgets vary.

5G may stimulate people to upgrade, but the price is still high

5G phones are usually more expensive – for example, Samsung’s Galaxy S10 5G, which launched at $ 1,300 in May.

“Consumers are aware of 5G phones at high prices and they may intend to make purchases,” said Brad Akyuz, chief executive and analyst at NPD Connected Intelligence. “However, only a small percentage of consumers can afford these $ 1,000 devices.”