Why are smartphones so expensive?

by birtanpublished on September 29, 2020

remember the greatest scandal in phone
history $1,000 price tag of the iPhone
10 well we're way past that and what we
told him 2017 to be the price ceiling of
what people are prepared to pay turned
out to be the floor this 2020 flagship
phone season the iPhone 11 Pro Series
start from $1,000 all the way up to
nearly $1,500 for the iPhone 11 Pro max
those greedy Apple honchos our favorite
punching bag but take a look around
even the lowly Galaxy S 20 starts from
$1,000 now all the way up to nearly
$1,600 for a half a gigabyte model of
the galaxy s 20 Ultra what they offer
more than the iPhone you say well how
about their fellow Androids now Chinese
phone companies previously associated
with value for money propositions only
are now offering more value for the
money and encroaching on the apples and
Samsung ters when it comes to pricing to
the huawei p40 pro now starts from
$1,000 for 128 gig model and the Oppo
find x2 Pro is priced at $1300 just shy
of the galaxy s 20 ultra HEC d1 plus CEO
even had to assure us that the one plus
a series pricing won't peers through the
$1,000 barrier in the US which would
still make these latest series the most
expensive one post phones ever made well
now falls in the US are following the
trajectory of new cars they get stuffed
with ever more complex technology and
they get more expensive and visibly
because something similar like this car
loans and here we have phone
installments with a plan in the four
years up to last monthly car payment
showed up $60 as opposed to just $5 in
the previous four years digital for
phone payments but since it's just a
couple of bucks more per month really
anybody noticed so what gives
well even per Apple gone are the days
when it made the iPhone 6 for $200 and
sold it will triple that as the camera
component was just $12 now the iPhone 11
cost about four hundred and ninety
dollars to make and stars from eleven
hundred dollars the most expensive
iPhone 11 pro max component you ask well
you guessed it it's not the screen
anymore as usually before but the $74
triple camera kit
the Hawaii CEO is on records confirming
that a camera kit with periscope zoom
like on the p40 Pro cost upwards of one
hundred dollars in components alone
which is a record but there is 5g to
blame too according to un plus CEO Hydra
connectivity poses many more design and
technical configuration challenges
compared to 4G especially in times when
prices across the supply chain from raw
materials to 5g chips are all rising
generally and unlike the Snapdragon 805
5 that could be bought from Qualcomm as
a standalone unit the new Snapdragon 865
chip that powers the flagship phones
these days is only bundled with the 5g
modem this requires retooling of the
phone's insides and if you wanted those
much touted 5g speeds you needed to
additionally pay Qualcomm for adding
millimeter wave filters and outfit the
handset with a lot more antennas all
around has millimeter waves like
Verizon's 5g network cannot travel very
far or even penetrate walls or you palm
easily this if you want a cheaper phone
this year you'd have to go with the
likes of the Google pixel 5 or the LG G
9 that may land with the cheaper
snapdragon 7 6 5 but of course those are
just rumors yet when you say cheaper we
don't mean just the chipset cost but the
price for the whole processor graphics
modem antennas kit which when coupled
with Qualcomm's licensing fees in the
internal design reinventions necessary
could add up significantly to the final
assembly cost of the phone snapdragon
765 a lower tier chip on the other hand
is the only integrated shovel-ready 5g
solution that can be used on US carriers
so far apparently all of this snapdragon
a six five paraphernalia does not only
add to today's flagship phone costs but
it also takes a heavier toll on battery
compared to say the snapdragon seven six
five chip according to phone maker
haiji connectivity in general and
snapdragon a 6'5 in particular each at
20% higher power draw from the battery
forcing manufacturers to use much larger
and more expensive battery packs then on
their 4G 10 sets in short phone prices
are rising again because nobody makes do
with the front and rear camera anymore
and some like the pho a p40 Pro are now
up to 7 sensors in total add the
expensive periscope zoom with folded
lens optics the high refresh rate
displays be 5g modem and the larger
batteries to serve them all as well as
the ultra fast charging blocks and
high-end phone cost almost double in
components compared to what they did
just two or three years ago and there
you have it folks
when high-end phones cost $200 to make
they sold for $600 now they cost $500 to
manufacture and more in part prices
alone and we seem to be creeping up
towards $1500 flagships so when will it
all end well expensive 5g and multi
camera rockets will fall down and cost
with time and we're keeping phones for
three instead of two years now on
average and this will cushion the price
tags but the average high-end phone
prices north of a grand are here to stay
in this season of 10 times optical zoom
120 Hertz displays and all around 5g
connectivity not to mention the bare
necessities like the futuristic new in
display finger scanners the question is
who's buying in this guys wraps up our
look at the reasons why smartphone
prices keep on growing it here now
reached almost the $1,500 mark I hope
you enjoyed watching this video let me
know your thoughts about these latest
developments would you buy a $1500 phone
or would you stick with the more
traditionally priced handset my name is
Vic this is phone arena it was my
pleasure talking to you
hope to see in the next one for this
subscribe to our channel on YouTube like
this video if you enjoyed watching die
we'll see in the next one

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