Inflation development in the smartphone company: Is the customer really missing out?

You, me and everyone out there need a smartphone. Yes, this is the 21st century and life without a smartphone is not possible. Smartphone companies, in order to monitor future demand, introduce new and better smartphones with curve screens, improved connectors and cameras. However, an important question why increases prices when all these improvements are natural? In addition, why are the insignificant price increases in the mobile phone company when the market is flooded with phones coming from Chinese manufacturers. And last but not least, is the customer actually losing the end of this inflationary trend?

Gfk, a research company that collects customer data, has stated that the price increase in the mobile phone company is about 7 percent in the third quarter of 2017, compared with the figures in 2016. There are numerous examples that explain why inflation developments on the smartphone are not justified. The figures further show that it is a consumer to buy more and more expensive smartphones every year.

We all promise the fact that innovations are natural. We want all the bigger, better and beautifully designed smartphone. In addition, we also know that innovation is the most important factor, which makes the price high. But the fact is that important features become cheaper over time. So smartphones, to keep the customers with the balls, introduce gimmick innovations. You can get the situation with an example of a phone with bezel memory design. Yes, bezel little phone looks great, but I do not think the load of arm and length for such burning innovations is justified.

Trademark war is also an excellent factor that leads to price increases in the industry. This Android iOS conflict has meant manufacturers to review this $ 1000 price tag. In addition, the big names seem to be Apple and Samsung, do not stop at $ 1000, thanks to the Apple iPhone X costs $ 1000 +. Similarly, the upcoming Samsung Galaxy S9, although the name is not yet confirmed, could easily cost over $ 1000. And this brand war is doing nothing but making the average consumer worse.

Customers, somehow, are also responsible for this non-indexed pricing. Price increases because people are willing to pay high prices. You may be familiar with simple economics, which claims to have raised price increases with increased demand for a product. Thus, consumers are also responsible for this price increase. If we, the customers, educate us about buying a product when the price is more competitive, the step would keep manufacturers away from monopolizing the market.

The central range of network operators, which offer similar features to what the premium laws are, rarely cover the news and headlines. Older brands, Motorola and Sony, are squeezed out of the market because they can not track modern flagships. Middle range of workhorses, ie. Huawei, OnePlus and LG, etc. Are doing their best to offer both quality and affordability. However, they also have this continuous threat of being the sidelines of the market due to the price war with large brands.

On the one hand, unconventional price increases with major smartphone companies make customers worse as they set the policy to charge high prices. On the other hand, they are fatal to the mid-range companies, who are racing to offer both quality and affordability, but face the threat of being squeezed out of the market due to prices, similar to Sony and Motorola in the past.

Thus, smartphone companies need to keep in mind that it's not innovations that want to secure their position in the market, but the price chain that ensures their long-term security.

Source by Ayesha Iftikhar

Leave a Reply

Your email address will not be published. Required fields are marked *