Why Are Phones so Expensive?

Why are cell phones so expensive?

Read more: Siri why is the fire truck red Read more: Siri why fire trucks are red Read: why smartphones are so expensive When cell phones first entered our lives in 1973, they allowed us to make and receive calls. And that’s it! Read more: Siri why are fire trucks red Read: why are smartphones so expensiveWith the invention of text messaging in 1992A year later, IBM released Simon Personal Communicator, comes with calendar, address book, clock, notebook, PDA, email service, QWERTY keyboard and touch screen. A year later, a phone was released with the game Tetris pre-installedJust a few years later – in 1998 – 3G networks begin to be deregistered globally, paving the way for viable and affordable mobile internet technology. Then in 2000, First camera phone released in Japan by J-PhoneSince 2000, the development of the phone has gone too far, with smartphones today boasting an incredible range of features. In fact, even though they still have the word “phone” in their name, a typical modern smartphone has more in common with a computer than what we usually think of as a phone.We expected a lot from this humble mobile phone. This means that the smartphone market has become extremely competitive. Big name manufacturers are constantly trying to create a device that is superior to their ultimate and better than their competitors. It costs money to create and build devices equipped with all this new technology, but can that alone explain how expensive smartphones have become? 490 percent increased over the past two decades.

Smartphone prices: What’s going on?

Phones are more expensive than ever at the price of a modern, flagship smartphone more than 1,000 pounds. Now, with the advent of foldable phones, which are being valued at £2,000 or more, it looks like the upper bound for phone prices will continue to rise. . So what happened? As always, there are a number of reasons why phone prices have skyrocketed over the past few years. Here are some key factors: Read more: Siri why fire trucks are redRead: why smartphones are so expensive1.Sticker ShockRead more: Chungha – Why Don’t You Know (Feat. Nucksal) ) | Top Q&AW When smartphones started to become popular, most people chose to fund their phones using a contract. A typical cell phone contract is for 6 to 24 months, with the consumer paying a monthly fee that covers most or all of the cost of their device plus network requirements (calls and phone calls). , messages and data). As such, many people remember paying around £200 for a brand new smartphone – though in fact they had to pay morethey only pay in installments. Since 2017, the number of people paying for SIM-only or pay-as-you-go contracts is increasing dramatically. Indeed, it is thought that a SIM-only contract is currently the most popular type of mobile contract in the UK. Experts say this change makes consumers realize that it is often cheaper to buy a device right away. Furthermore, as the quality of devices increases, the allure of annual upgrades is starting to fade. reduce the number of people upgrading their phones every year. Fewer updates means less sales of new handsets, so phone makers have a choice: sell more phones or charge more phones. The latter option won out and this is why flagship phones are so much more expensive these days..Read more: Siri why fire trucks are redRead: why smartphones are so expensive2 Hardware and materials Smartphones are among the most technologically advanced products ever marketed to a mainstream audience . We can’t have enough of them. Some of us will even queue for days just to get the latest release. For companies to make the most of our love of phones, they need to continually improve them. Significantly improving a phone often requires building new hardware. The new hardware will be able to support faster computations, hold more data, and execute entirely new processes. But building this hardware is expensive. Some materials used in modern smartphones are quite scarce. These, called, “Rare” is a group of 17 chemical elements with catchy names like dysprosium, yttrium and thulium. These play an important role in the production of many modern innovations – including televisions, cell phones, laptops, cars and medicines. For smartphone manufacturers, the increased demand for rare earths means that their production costs also increase. To protect their profits, much of this is passed on to the consumer. As such, the scarcity of rare earths is one of the reasons why we see smartphone prices go up Read more: Siri why fire trucks are expensive Read more: why are smartphones so expensive so3. get and create new hardware. Unless you make good use of that hardware, your new phone won’t be able to deliver any significant improvement To make a better phone, you also need developers and engineers – and a lot of them. Apple hires 12,000 engineers in the US alone. And these tech experts don’t come cheap. Engineer salary at Apple US ranges from $71,000 to $164,000. If we take the average developer salary of $117,500, then Apple spends just under $1.5 billion on development and engineering talent. . Furthermore, as competition in the smartphone market continues to heat up, development and innovation costs will also increase. Phone manufacturers have to cover these costs somehow, and The most obvious way is to increase the priceRead more: Siri why are fire trucks red Read: why are smartphones so expensive Why do smartphones cost so much money?Declining demand Although phone companies are constantly trying to outperform each other and create more innovative products, statistics show that consumers are less interested in ever-improving mobile technology . In 2018, Global smartphone sales fell for the first time.In a way, this makes sense. At first, the growth of each new generation of smartphones that opened was huge. Cameras have gotten much better, storage capacity has increased dramatically, internet connections have improved, and processing speeds are getting faster and faster. But exponential improvement can not go on forever.Read more: why does my ps5 keep shutting down | Top Q&AMoore’s Law is the observation that the number of transistors in a dense integrated circuit doubles about every two years. In layman’s terms, this means that the world of computers will increase relative power and decrease relative costs at an exponential rate. In other words, computers – and our smartphones – will get better and better. Many people think that Moore’s law is dead. A typical transistor today is about 10 nanometers – it’s really, really small. And so, we may be getting close to what is physically possible with our current understanding of computers. That means the unprecedented growth in computing power may be coming to an end – which makes it hard for smartphone makers to make their products more powerful without making them big. than. foldable screens attract a lot of attention in 2019. But will these more superficial developments be enough to sustain consumer interest? Today’s declining demand for smartphones shows that’s not the case. If manufacturers are selling fewer phones, they need to sell them for more to stay profitable Read more: Siri why fire trucks are red Read: why smartphones are so expensive5 Brand The world of designer clothing is sustained by consumer appreciation. A pair of shoes can cost as little as £100 to make, but a budget brand can sell them for £1,000. That is The power of the brand. And we are all drawn to it. When new technology manufacturers started, they sold their goods based on product specifications and specifications. The first adopters of computing technology and smartphones were more concerned with function than fashion. However, when smartphones became popular, things made them realize that they could also sell their goods like fashion items. transforming from a technology company to a fashion company. The company places more and more emphasis on aesthetics, and in 2015 began poaching some of the biggest names from fashion and luxury design industryWhile Apple is perhaps the best example of a tech company rebranding itself as a fashion company, other smartphone makers have tried to do the same. . And The biggest driver is profit. Consumers are willing to part with hard earned money if they believe that the product they are buying will make them look stylish and great. So, as smartphone manufacturers continue to build their brands, we can expect the consumer markup to increase. Indeed, branding has played a major role in the price increases we’ve seen over the past few years.

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