Sunday, 4 November 2018

Flagship Phones getting costly Budget phones getting better

Flagship Phones are getting costly but Budget Phones are just getting Better

 Smartphones got prominent with the launch of Android and Apple phones in the market and now they have become quite common among people. HTC Dream G1 was the first commercial Android device which was launched in 2008 with the price tag of $180. It's price is not as high as other flagship phones in the market like iPhones. First iPhone was launched in 2007 that is iPhone 1, and it was a true flagship device with price tag of $499. Samsung launched it's first flagship device, Samsung S1 in 2010  to oppose iPhone 4 which costs $649 in the market. All these phones are the flagship phones from the companies.

iPhone 1 can be considered as the first true flagship device which came at price of $499. Year after year the price of iPhones increased. Every new version come with new features but it also comes with a higher price tag. For example iPhone 1 came with $499, iPhone 3G with $599, iPhone 4 with $599, iPhone 5 with $649 and it continued. After iPhone 5, iPhone 6 launched in two versions that is iPhone 6 and iPhone 6 plus. Obviously plus model would be better than regular one and also be costlier. And it has happened with every iPhone till now. With the launch of iPhone X, Apple directly slashed the prices to $999 which made it the costliest iPhone ever and best also.

This year we have iPhone XS and XS Max. iPhone XS starts at $999 while iPhone XS Max starts at $1099. We already know that bigger version will again be the best between two. So we can say that the prices of iPhones are increasing year after year. And it's not only the case with Apple, it is with every smartphone brand in the market like Samsung and Google. So why the prices are getting so much high?  It has two reasons that are new better features and inflation in the market. Everything is getting costly like labor, materials, advertising, R&D etc. This is the reason which companies give why flagship phones are getting costly.

Now let's shift to some other stuff. Earlier there were very few brands available in the market like Samsung, LG, HTC etc. and also we are very much restricted to offline markets only. So we buy phones from these brands in mid range and budget segment also. But now with the integration of online market, many smartphone brands are available. Brands like Oneplus and Xioami have changed the whole smartphone market in budget and mid range segment in past few years. These brands give better value for money phones than Samsung or HTC at the same price. So people have understood this and they have started preferring these brands over Samsung or HTC.

But the question is how do they able to give so many features in their phones at such a price? There are many factors to consider. If we have to sell a phone in the offline market, there are many middle men involved in between the company and the market, so the price of phone keeps on increasing with every middle man involved. These brands sell their phones only in the online market so there is no middle men involvement. And pricing of phone don't get high with many persons involved. Secondly these brands also keep their profits per phone low which helps in reducing the cost of the device. Also they don't spend a lot on their R&D department while the companies like Samsung and Google spend a lot of money on R&D. These brands also don't spend a lot on advertising as well which further helps in reducing the cost of the device. So these are the main reasons for low cost of these devices. 

But now some other companies have emerged in the market which are giving even better value for money phones than Xiaomi and Oneplus and that are Poco and Realme. While Poco is a sub brand of Xioami so technically it's Xioami. Poco F1 is the phone which is powered by Qualcomm's Snapdragon 845 chipset and is avialble at just $300. So this is the cheapest phone to be powered by this chipset. Earlier Oneplus has this title. I am not saying Poco F1 is  better than Oneplus 6, it's just better value for money phone. Same case is with Realme phones. Realme 1 and Realme 2 pro are just fantabulous phones at the price they are avialble.

So here we saw that the budget and mid range phones are just getting better and better and that too at the same price or even cheaper. So what's actually happening in the market? Do we really have to go with such bigger brands for flagship devices?

Actually it depends upon you only. First of all flagship phones are the phones which have very high end features. Any new feature which comes in the market firstly comes to flagship devices. These have best processors, best cameras, best displays, best built quality, in short they have everything best. But these days problem with flagship brands is pricing. They don't price their phones aggressively which results in low sales. These brands should understand the smartphone market carefully and should price their phones accordingly as many persons have understood the condition and started going with other brands like Oneplus. If they will not pay attention to this, one day will come that their sales will decline to a huge level.


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