Smartphone Prices Surge Collectively, Flagship Models Break the 4500 Yuan Barrier, Are You Ready to Upgrade?

Smartphone Prices Surge Collectively, Flagship Models Break the 4500 Yuan Barrier, Are You Ready to Upgrade?Many people planning to upgrade their phones this year are likely discouraged by the prices of flagship models. Recently, flagship phones launched by OPPO, vivo, Xiaomi, and Honor have all started at around 4500 yuan, indicating a general upward trend in smartphone prices

Smartphone Prices Surge Collectively, Flagship Models Break the 4500 Yuan Barrier, Are You Ready to Upgrade?

Many people planning to upgrade their phones this year are likely discouraged by the prices of flagship models. Recently, flagship phones launched by OPPO, vivo, Xiaomi, and Honor have all started at around 4500 yuan, indicating a general upward trend in smartphone prices. Data released by Counterpoint Research shows that the global average selling price of smartphones is projected to reach $365 (approximately 2641 yuan) in 2024, representing a 3% year-over-year increase. Counterpoint Research further predicts that the average selling price will climb to $385 (approximately 2786 yuan) in 2025, marking a further 5% rise.

This collective price increase in smartphones is attributed to a combination of factors, including inflation and rising upstream component costs. On October 15, 2024, Ming-Chi Kuo, an analyst at TF International Securities, revealed that the unit price of the Snapdragon 8 Gen 4 chip has reached $180, representing a 15% increase compared to its predecessor. This is just one example of the rising costs of numerous components.

For instance, prices for core components like screens, memory, and flash storage have also been climbing, directly impacting the manufacturing costs for phone manufacturers. Ultimately, these costs are passed onto consumers.

Beyond rising component prices, smartphone manufacturers are also increasing their research and development (R&D) investments to achieve technological breakthroughs and introduce more competitive products. In recent years, significant advancements have been made in areas such as imaging, performance, and screens, all of which are fueled by substantial R&D spending.

Naturally, the rising prices of smartphones have sparked concerns among consumers. Some consumers believe that manufacturers should control prices and not solely focus on profit maximization. Others contend that higher prices signify better experiences and that consumers are willing to pay for exceptional products.

In conclusion, the increase in smartphone prices is a complex issue influenced by multiple factors, including inflation, upstream component costs, R&D investment, and market competition. Consumers need to approach price increases rationally, choose devices that suit their needs, and pay attention to value for money.