Struggling with the onslaught of overpriced smartphones? Don’t be because many factors influence it.
In this article, 10 reasons are highlighted to better understand the works in play. You can use them to correctly time your next purchase so you can avoid that overpriced SRP.
Disclaimer: The definition of overpriced varies from region to region based on economic dynamics. In the US, a smartphone costing $1,000 or higher is considered overpriced but in the Philippines, a price tag of more than PHP 30,000 could be considered overpriced by many.
1. Unstoppable Inflation
If the food on your table is expensive, the same goes for everything else, including gadgets. From chipsets to display screens, every part becomes a subject of inflation.
There are many factors behind inflation, such as supply and demand, supply stocks, and monetary policies. But we’re lucky that not all smartphone vendors are letting this element dictate the market.
Some are willing to compromise to sell products at a lower price. Of course, some trades are done to make it happen. Regardless, newly launched smartphones often have a discount or promo period.
2. Branding Got a Price
Brands have a price attached to them, which is why luxurious items are expensive. Even though not every item produced by luxury brands is impressive, it’ll still have a jaw-dropping price tag because of human perception.
Many believe that high-quality is linked to a high price. That’s possibly one reason why Apple, Samsung, and Xiaomi, among others, are capable of launching overpriced flagships.
A 2019 study by researchers at the University of Texas at Arlington found that consumers rely on price to assess product quality. So, those who see low prices often perceive the quality as poor.
3. Competitiveness
There’s another story behind branding. Since Apple and Samsung are top smartphone brands, they are competitive with each other. Didn’t you notice that their flagships are priced similarly?
Visit a mall and check the low-end and mid-range brands too. Entry-levels are usually below 10K while mid-rangers are between 11K and 20K. Higher-end starts at 21K and goes up to 30K. Beyond 30K means that the device is getting a “premium” value.
But why won’t top brands drop their prices despite the success of new players? Because they know their products will sell no matter what.
4. Buyers Do Exist
Speaking of selling no matter what, buyers of top brands thanks to their consumer bases, which have been built over time. A user from these consumer bases can’t move away from them because they have relied on the user interface, software, and other features.
Yours truly will provide an experience of relying on a brand. I personally used Infinix NOTE 10 Pro before upgrading to LG V50 ThinQ and eventually, POCO X6 Pro 5G. On my Infinix phone, you can swipe from either side while on any app to summon the Smart Panel of quick shortcuts.
My LG V50 ThinQ and POCO X6 Pro 5G are light-years ahead in performance against my Infinix NOTE 10 Pro. But both formers don’t have the panel, which means I have to press the power key all the time to shut the lock screen.
Infinix lets me do this with just a gesture and that simple difference in experience is big on a daily basis.
5. Payment Terms
When you buy a smartphone, you either pay with cash, debit card, credit card, or installment. See that zero interest installment scheme? Ask the seller what’s the upside of paying in cold cash? Discount!
There’s no interest rate because the SRP already includes it. But cash payments usually slash the price by at least 1K. Survey the whole mall and calculate the differences between vendors and be surprised by the amount of savings from cash payments.
Sadly, many will go for installments because of budget limits.
6. Software Support
Investing in a flagship smartphone means investing in its own future. Flagships tend to last for many years, up to a decade before really needing a replacement. This is because they have longer software support than other tiers – reaching more than five years!
You need that software support for bug fixes, major upgrades, and security patches; all critical for securing sensitive information and finance-related apps.
Low-end models may not even follow the minimum support period while mid-rangers are provided with two or three major upgrades.
7. Advanced Hardware
Snapdragon 8 Elite? Whew, that’s premium. MediaTek Dimensity 9400? Cheaper than the other flagship but still pricey for many. That’s just the chipset! What about these:
- AMOLED panel
- LTPO display tech
- 5G modem
- Wi-Fi 6, 7
- High-end camera sensors
- Ultrasonic fingerprint reader
- IP68/69 dust and water resistance
Those will add something to the final price. The better the hardware, the pricier the device will be.
8. AI Features Incoming
Apple Intelligence, Galaxy AI, Infinix AI ∞, and many more are heading to smartphones in full force. AI uses a lot of computing power and brands will make them premium one way or the other.
Can you dodge it? For now, yes, by buying low-end models or smartphones that lack CPUs with neural cores.
9. Luxurious Add-ons
If you haven’t heard, some smartphones are overpriced because brands combine premium and luxury. Confused? Check the back and look at the camera module.
Did you see the word ZEISS or perhaps Leica? These are luxury optics that significantly boost camera performance, trampling those lower end pretenders. But such optics will surge the price too!
Notice the LTPO on some phones? That’s a pricey tech that lets the display drop its refresh rate to as low as 1Hz, excellent for saving battery.
10. Neverending Tech Cycle
Smartphones aren’t easy to make and demand facilities. Chipsets and other hardware parts require even more sophisticated facilities to avoid contamination. If the bulk of the season isn’t sold, where do you think companies will gain profit?
This is a part of the neverending tech cycle where brands and tech firms make yearly releases to sustain market, presence, pressure, and profit. It’s not unique in this industry because you can see a similar pattern in the most basic enterprise.
Except in tech, it’s bigger and wider to reach a broader consumer range. The cycle maintains relevance and guarantees the sales of stock items.
Takeaway
Smartphones are overpriced by default and their status only changes based on your needs and economic capacity. If your budget is only 5K, everything beyond that is overpriced. But if you can shell out 50K, anything beyond that could just be expensive at the moment.
Thus, it’s highly recommended to do your research in determining your needs and which smartphone has the highest chance of meeting them. While some brands have achieved great lengths, it’s not always the model or the manufacturer.
Sometimes, it’s just as simple as knowing the right processor, camera, or entertainment specs.
