What the heck is going on with skyhigh smartphone prices?

[Tig Bitties]

Ok the Pixel 2 XL was just leaked today, I am a major Nexus nerd, and super pumped for the new Pixel. But $850 for the base option starting price, and $950 for the good Pixel 2. !! Holy Cow, that's unbelievable for the stock Android phone;

http://www.androidpolice.com/2017/0...wo-colors-will-cost-849-64gb-model-949-128gb/


And seems all flagships this year are just skyrocketing in price for no apparent reason;

Pixel 2 = $950 !!!

iPhone X = starting @ $999

Galaxy Note 8 = $950

Huawei Mate 10 leaked today, will be $900+


Am I in the Twilight Zone or something, when the *** did smartphones jump up to the $1,000 range all of a sudden ? I recall the $649 to $700 price range being the main flagship pricing for years for most high end phones. Some creeping up to $750 or so. But BAM 2017 comes around and close to $1,000 is the new standard WTF ?

 

[lazard]

the phablets have always been expensive. You can still get the smaller size flagships at the $700 range.

 

[jbachandouris]

They have always been expensive. The only reason we notice is due to the elimination of carrier subsidies. A basic iPhone was $650 without subsidy.

 

[serpico007]

In Canada it's all over $1000, it feels like the old days when mobile phones were a luxury. I remember the Moto Razr costing $1000 when it arrived here. In the end, it's up to consumers to vote with their wallet to give corporations direction. If we all pay it then don't be surprised if the price continues to climb.

 

[epicrayban]

I sincerely think the S8 remains one of the best values of the year. Especially if you catch it on a $500-600 discount, unlocked, like it was a month or so ago. You get the full flagship package without spending the insane prices of the V30, or Note 8, or iPhones, or the Pixel 2's.

Even some of the S8 Plus deals have been competitive.

 

[Tig Bitties]

It seems like only Samsung and LG offer these really good discounts and Deals a couple months after launch. Both companies will slash their flagship pricing down quite a bit.

But Apple and Google do not.

 

[Aneres11]

I imagine that One Plus are just sat back grinning watching these phones get released with these astronomical prices.

Cue the 5T shortly at half the price of the X...

 

[Puddled]

It seems like only Samsung and LG offer these really good discounts and Deals a couple months after launch. Both companies will slash their flagship pricing down quite a bit.

But Apple and Google do not.

Google doesnt have (or want?) The volumes of apple or samsung to keep margins low.

Apple are a high margin company.

Samsung want the cache' of high prices but the volume of low prices hence the modulating price structure.

I can get a samsung S8 64gb for ~€560

At launch it was €800


https://www.eglobalcentral.eu/mobiles-and-tablets/mobile-phones/#/product/20673

The S8 is 6 months old. My 3GS cost me €550 when it too was on the market for 6 months.

I feel that €600 feels about the right price for it. Its a lot of tech tbh.

The iphone 8 is €830. €999 for the 256 gb model.

The pixel is €760 euro new but is now €500

https://www.eglobalcentral.eu/mobiles-and-tablets/mobile-phones/#/product/19566


Forget about 1st day prices. Ignore the bump and look at them after 3 months when androids price premium burns off.

Iphone = €830
S8 = €560
Pixel = € 500

Greedy carriers (like mine ) will keep the android price high as long as it can (usually until the iphone is released) but eventually they do get brought back down to earth. A little shopping around can get you close to the proper price and if you go outside of your carrier, you can get real vfm.

Except apple. The iphone price doesnt change. Its stays firm for the year and at €830 for the base model, thats an awful lot of money.

Whilst the top spec androids are close to the iphone at the start, they usually settle a fair bit lower.


So at the moment, my carrier has the S8 at €800 and the I8 at €780 off contract but the S8 is €299 and the iphone 8 €350 on contract.

This is with the iphone just out and the S8 out 6 months.

How does that make sense? However i can get the S8 for €565 online. If i was needing a new phone, my carrier has oriced me out. Those prices are just not managable for me anymore especially considering the contracts have also risen to €60 pm. Thats €2240 over 24 months!!

Nope.

Thats me gone and my wife too. And that means no more iphone hand me downs for the kids either.

Are they trying to kill the market on purpose?

 

[Truefan31]

It seems like only Samsung and LG offer these really good discounts and Deals a couple months after launch. Both companies will slash their flagship pricing down quite a bit.

But Apple and Google do not.

Apple does not have to slash prices YET. There's no need from their perspective to cut prices when their flagship devices sell in massive high volumes.

Samsung and LG among others are in a different position when it comes to selling their flagships. Google probably feels as a first-party smartphone maker now that they should mimic some of the pricing strategies that Apple employs.

 

[Yankee512]

Pixel 2 is going to be $649.

https://www.androidcentral.com/google-pixel-2-will-start-649-come-kinda-blue-third-color-option

 

[Fernandez21]

Ok the Pixel 2 XL was just leaked today, I am a major Nexus nerd, and super pumped for the new Pixel. But $850 for the base option starting price, and $950 for the good Pixel 2. !! Holy Cow, that's unbelievable for the stock Android phone;

http://www.androidpolice.com/2017/0...wo-colors-will-cost-849-64gb-model-949-128gb/


And seems all flagships this year are just skyrocketing in price for no apparent reason;

Pixel 2 = $950 !!!

iPhone X = starting @ $999

Galaxy Note 8 = $950

Huawei Mate 10 leaked today, will be $900+


Am I in the Twilight Zone or something, when the *** did smartphones jump up to the $1,000 range all of a sudden ? I recall the $649 to $700 price range being the main flagship pricing for years for most high end phones. Some creeping up to $750 or so. But BAM 2017 comes around and close to $1,000 is the new standard WTF ?

Yeah, I don't get it, I thought the prices should start to come down not up.

I almost want to say it's the carriers that are keeping these prices high to force people into payment plans. I remember years ago some one taking about how the off contract price was artificially inflated by the carriers and if a handset manufacturer couldn't under cut the carrier price if they wanted them sold in carrier stores.

It seems it might be best to sit out these launches and wait until price drops. I got my iPhone 7 256gb for $649 last year from best buy in February.

Or if I'm going to spend over a grand on a phone, that's no longer a yearly cycle for me, puts it closer in laptop territory and better last me a couple of years. And it better have all the features I want, will be more picky at these prices. I generally spend about $2,000 for my computer's, but I keep them for 5-6 years.

 

[Fernandez21]

the phablets have always been expensive. You can still get the smaller size flagships at the $700 range.

The phablets used to be in that $700 price range with the smaller flagships at around $600.

 

[Fernandez21]

They have always been expensive. The only reason we notice is due to the elimination of carrier subsidies. A basic iPhone was $650 without subsidy.

It was actually $599 until the at&t exclusive ended, then it went up to $649.

We were also getting them at a discount, that's why I didn't switch to one of the new plans until they got rid of contract pricing. I get that people were upset by being locked into contract and the high etf, but getting these phones were much more manageable then, $800 to upgrade everyone in the family or $100 a month now to do the same (or $3,000 to pay up front.)

 

[Tig Bitties]

I would like to see Google do an apple does where Apple keeps their Old Flag ships around brand new for sale still you can get the iPhone 6s plus brand new from Apple for $549, which for most average Joe's the 6S brand new is still a great phone.

Google should keep last years Pixel XL and sell at a reduced price.

 

[AustinIllini]

For someone who enjoys swapping out phones, the sticker shock is hitting me really hard. I'm skipping a year which I hadn't intended upon doing.

Was thinking about switching myself and the wife to android next year, but now I'm not sure.

 

[Rum_Becker]

It seems like only Samsung and LG offer these really good discounts and Deals a couple months after launch. Both companies will slash their flagship pricing down quite a bit.

But Apple and Google do not.

I would love a pixel but Google does not seem to be playing ball like it use to do with the nexus. There is no way that I will pay that kinda money for a phone. LG on the other hand go on fire sale soon after launch, I can't wait to pick up a G6 for 200$ or so when the G7 launches.

 

[deany]

As puddled has said.
With the likes of Xioami their statagy appears to be when sales of a model reach a certain level, they discount.

I think Samsung et al are the same ie

Samsung S8 April 2017 launch price £689.00

6 months later S8 £455.99 34% off, no trade in needed.

a quick internet search and this appears http://jgadget4u.com/Samsung-Galaxy-S8-64GB-Midnight-Black-G950FD-85575.html

Many examples of this with Xiaomi.

So best to wait, ideally 6 months before buying new models. The added benefit of waiting is the reviews and real life tests have been completed.

I think thats why my 10 year love affair with iPhone is being stretched. Apple don't discount in the 6 month time frame, and when they do, its a small discount and the new model is due out.

 

[nviz22]

That's why phones shouldn't be gotten rid of after 1 yr or a few months. If there isn't a demand and too much supply, the prices will come down eventually.

If they continue with this rising flagship pricing trend, I am going to go with the last year model on clearance or on sale path to avoid losing value for my $. My Note 8 should last me about 2-3 years anyways. I am not upgrading my laptop, phone, or tablet unless I absolutely need to at this junction.

 

[Michael Goff]

Is this a good time to talk about the rising costs of components?

 

[widgeteer]

Is this a good time to talk about the rising costs of components?

No, because we all know everything that goes into these phones adds up to a dollar. The other $999 you're spending is purely on marketing.

 

[Michael Goff]

No, because we all know everything that goes into these phones adds up to a dollar. The other $999 you're spending is purely on marketing.

You need to add that sarcasm tag, people might think you're serious.

 

[Shanghaichica]

I imagine that One Plus are just sat back grinning watching these phones get released with these astronomical prices.

Cue the 5T shortly at half the price of the X...

But even the so called mid range phones eventually raise their prices as they pack in more technology. Ok sure the latest iteration of the one plus is more expensive tha. The first gen.

 

[deany]

Looking at apple's "flagship model" iPhone 6 Sept '14 and iPhone X '17

I paid £699.00 in Sept 2014 for my 128GB iphone 6
The iPhone X at £999.00 represents a 42.92% increase in 3 years over my model. Outrageous.
I know there is new tech inside but the X I have compared is actually the 64GB model, so not the X's flagship model per se.

 

[Shanghaichica]

Looking at "flagship model" iPhone 6 Sept '14 and iPhone X '17

I paid £699.00 in Sept 2014 for my 128GB iphone 6
The iPhone X at £999.00 represents a 42.92% increase in 3 years over my model.
I know there is new tech inside but the X I have compared is actually the 64GB model, so not the X's flagship model per se.

I suppose the 8 would be the equivalent here because Apple are trying to pitch the X as a premium device.

 

[deany]

I suppose the 8 would be the equivalent here because Apple are trying to pitch the X as a premium device.

Without sounding cynical, I'd say the 8 is more of a 7S so its not the "6" of its day i.e. Flagship and this is where apple are "pulling a fast one" in the marketing dept.