The price of the first mobile phone in the UK was £4,500, this would be equivalent to over £7,000 in 2021.
Over the years, technology was advanced and by 2007 we had smartphones. Of course, it was highly-priced.
Now in 2021, you can have a smartphone with relatively fast internet speed at less than £100. For the expensive segment, you will get more advancements like flexible phones with paper tab screens, top cameras, and many more.
The good thing is that you don’t have to spend a lot of money on some of this flagship phone, in a few years the prices normally reduces significantly.
If you have no idea where to begin your hunt for a good smartphone, I suggest you start by getting people’s thoughts about the latest smartphones by reading reviews at britainreviews.co.uk.
There you will find a list of online mobile phone shops with tons of customer feedback on them.
Coming back to this, what normally determines the pricing of a phone? This article has the answers to that question. These are the cost factors of smartphones in 2021;
Cost factors for smartphones in 2021
When it comes to the world of technology, if there’s one thing that many people look for is the brand name.
But, does it really matter? Isn’t it just a name? Well, it depends. You can argue backward and forwards. Two aspects play a role.
The brand name does not play a role in the functionality aspect of a phone.
Most of these expensive and brandy phones run with the same chips and other specs as the less known brands.
If two devices work in the same way the only difference being their price points, then I will choose functionality over price.
· Customer preference
The brand name influences customer preference. Famous brand names give a form of status symbol.
However, they too have not failed their customers. Some brandy smartphones have unbeatable features hence their expensive tags.
The bottom line is that the brand of a phone will determine the price the phone will go for.
2. Release date
The release date essentially means the number of days the phone has been on the market.
Back in the 1980s, mobile phones were so expensive. Fast forward to 2021, I cannot pay the same amount of money for a phone with no camera, let alone internet access.
When you buy a phone that was released yesterday, you are definitely going to pay the price for being among the first users.
You can also wait for a little longer (a couple of months) to buy the same phone and you will notice the huge price difference from when they first came out.
Of, course, there are other ways to buy high-end expensive phones instead of waiting for prices to drop. For example, consider buying a refurbished version or be on the lookout for Black Friday deals.
3. Features and specs
You get what you pay for.
To get the latest tech features and remarkable specs in your phone you have to pay the price for that.
Normally, highly-priced phones have features that set them apart from their previous models or other competing smartphones.
As we come to the end of the year 2021 some smartphone brands will be making the latest releases with better features. These features will automatically cost higher.
Features like 5G connectivity, OLED displays, wireless charging, unbreakable screens, water-resistant phones, and such features make some of these phones extremely pricy.
Smartphone brands tend to compete for a lot by comparing their products to another and coming up with better versions of the same. They, therefore, factor in competition when determining the price of a phone.
If there are a lot of competing smartphones with the same features in the market, prices will tend to go down.
However is there something that is completely new and there is no other similar product, the competition will be low and the pricing will be very high.
Remember when foldable phones were first introduced in the market, did it cost a lot more than they do right now when other companies have explored the technology.
Customer loyalty has seen a lot of these brands make huge sales over products that are not even that much of an advancement.
It is very common to find companies selling their gadgets at high prices because they know they have customers who will buy them regardless.
Most of the smartphone brands have yearly releases and it is at this time that there is a high demand from their customers.
This is where they make huge sales.