The Samsung – Apple war is making smartphone prices “ridiculous”

Samsung recently held an Unpacked event in the US to launch the Galaxy S20 series and new Galaxy Z Flip phone. Rebecca Hirst, Samsung UK’s chief marketing officer, went on stage and advertised this phone ” unlike anything you have ever experienced before “.

Everything seemed extremely fine when she continued to talk about features and configuration, until the price was revealed: 1,380 USD (32 million VND). It wasn’t even the most expensive device Samsung introduced that day. The most advanced model, Galaxy S20 Ultra, also costs from 1,399 USD (32.5 million). If you choose the 512GB version, the price is $ 1,599.99 (37.1 million).

The Samsung event emphasizes the “new standard” for the smartphone industry. In 2017, Apple shocked the world when it sold the iPhone X for $ 999. Many newspapers question whether or not users will spend so much money on a phone. Fast forward to the present, as Apple and Samsung compete in the high-end segment, the number of smartphones priced above $ 1,000 is increasing.

Two of the latest iPhones, the iPhone 11 Pro and 11 Pro Max, cost between $ 999 and $ 1,099, respectively. The most advanced iPhone 11 Pro Max costs $ 1,449 (33.67 million). You also can’t find a Galaxy S20 priced below $ 999.

Motorola also sells the Razr clamshell phone for $ 1,500 (though it only uses plastic screens, small batteries, and average cameras compared to today’s standards). Even so, the company had to postpone the release due to high demand.

Contrary to what the media assumed two years ago, mobile users seemed willing to spend a four-digit sum of money on devices considered luxury. Counterpoint researcher Maurice Klaehne said users’ tastes are heading towards the premium segment.

Part of the price push, he says, is the fact that users are “lazy” to upgrade their phones than before. Smartphone manufacturers like Apple and Samsung have to find other ways to maximize profits.

New technologies like folding screens and 5G – both of which appear on the latest Samsung smartphones – are easier to convince users to spend more, at least for now. Samsung is relying on the leading edge of 5G to attract customers. With the Galaxy S20 series, they already have 8 5G phones on the market. The Galaxy S20 + and S20 Ultra support mmWave, so an additional antenna is required, resulting in increased manufacturing costs. In the future, as these technologies become more popular, costs will decrease.

Galaxy Z Flip is the best example because its price is about 30% cheaper than the Galaxy Fold launched in 2019. This is Samsung’s first attempt on the folding screen smartphone market.