On Android, we are fortunate to enjoy a wide range of mobile phones. Ample in the price range, in addition to projects or other features. Whenever cheaper mobiles work better and that is why some think that expensive cell phones are no longer needed. On the other hand, the expensive ones continue to increase. What is going on?
Nobody went crazy here. We could put our conspiranoico cap on silver paper and say that they want to take all the money. There is also no false part in this statement, the manufacturers, all, are companies, not NGOs and the purpose is to make money.
Many things influence the price
The Fairphone has shown us the breakdown of the cost of your Fairphone 2 phone. Remember that Fairphone is a mobile manufacturer that seeks the least environmental and social impact (caused by conflicting materials) which is also transparent in terms of cost
Often we can see news of the style "The new _ of 900 € costs only 300 € to be manufactured". Oh, wow! They are cheating! Well, no, you need to know that a cell phone or any other device is not manufactured . There is a company behind which you have to pay to operate, you have to pay those manufacturing costs and you also have to pay taxes.
The cost of a cell phone is segregated in many parts, not just in manufacturing. For example: investment and research.
It is common to say that Chinese phones that are only sold in that country do not pay taxes . So, if they are not officially sold in other countries (as recently Xiaomi in Spain), they are not paying taxes in these countries. According to the country, they also do not pay for the use of patents. In this way, they succeed, cheating, selling cheaper. Although some companies go to Ireland not to pay taxes … but that is another question .
But the part receiving less attention is investment or ID + i (Research, development and innovation).
How investments change prices according to the cell phone
Research departments, investments in companies, acquisitions … Everything to look for the next differentiator.
Bixby is already an example of investment to seek differentiation. Samsung also owns C-Lab and Google has Google X, research departments dedicated to finding new features for mobile devices or directly new ones. From Google X left the independent driving company Waymo and the smart jacket with Levi's.
If a company did not invest, it would have no future . Stagnating always renewing the same and depending on others, ending in the ruin of the competition, offering nothing new. On the other hand, the amount allocated to the investment changes according to the range in which we find ourselves. The low reach has to be cheap, so that the extra cost for the investment is reduced to the minimum while it is in the high range in which the large part falls.
High-end to improve high-end and more?
The high-end is the showcase of current technology and the cradle of the future.
Well, companies need a showcase where they show their technology. They need a way to use it to improve it. You'll think it's best to put it on the best-selling cell phones, which are usually the cheapest. Instead, as we said before, putting new technologies and therefore expensive on a cheap cell phone would raise its price too much and would not be more attractive compared to the competition. The solution: expensive phones.
All that goes up low: from high reach to low reach
The low- and mid-range cell phones we know of now exist thanks to the previous high-end cell phones.
OLED screens? Use of metal? Dual camera? The same story over and over again . The low and mid range cell phones we know now exist thanks to the fact that it triumphed the wide range of a few years ago.
Mobiles increasingly expensive for more expensive upgrades
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