It’s becoming a norm that newer phones are more expensive than older ones. Well, this is a trend that is here to stay. Smartphone manufacturers are not Father Christmas and they’re not ready to play that role by selling their phones without profits.
Some might say smartphone companies are greedy, but whatever you say now won’t matter because let’s face it, they’re here to make profits. In fact, the prices of smartphones in the second quarter of 202 is been projected to be more expensive and there is a good reason why.
The thing is, manufacturing smartphones is intertwined with buying components of these phones. Recent report is claiming that components manufacturers are increasing the cost of components which inevitably means prices of phones will increase.
The rise in prices will continue and in the second half of this year; we will have to get used to the new price tags for smartphones. Vice President of Realme Xu Qi warned about this to a wide audience
When a smartphone company buys expensive components, it won’t matter to them if the prices cut deep into your pockets. The company has to make money to stay in business – it’s just the sad reality.
In an interview, the VP of Realme Xu Qi said that at the beginning of the year there was an acute shortage of 5G chips; among which the Snapdragon 888 and Snapdragon 870 platforms were in short supply. There was also a shortage of 4G processors – Some Samsung phones is yet to be launched in some regions like the US due to the shortage of chip.
He also noted that there was an increase in prices for memory, components for charging adapters and other components. On average, they added 10% to the price. Increase in production and components automatically means increase in the price of final product – simple math.
The increase in demand for new technology like 5G will also push the price up. When there is increasing demand for anything, chances are it will push the price up – we see it every day in the crypto space.
So, get set as we welcome more innovating technology in smartphones. But also have it at the back of your mind that it won’t be coming cheap.