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The ups and downs of mobile phone prices

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The ups and downs of mobile phone prices

PostAuthor: Anthea » Thu Jul 23, 2020 12:20 am

Mobile phone prices

Price of a high-end mobile phone has rocketed 490% in 20 years and top handsets could cost £1,800 within five years

    Price of premium mobile phones have risen by 490% in the last 20 years

    Cost of a top range model could reach £1,800 within five years

    Adjusted for inflation, costs are heading back to the early 1990s when phones were a premium
The price of premium mobile phones have risen 490 per cent in the last two decades, new research shows.

It means the outlay for a top of the range model is close to heading back to the early 1990s, when huge mobile phones were only used by the rich and famous, and a Motorola 3200 cost £762 - or £1,651 when adjusted for inflation.

However, new models and technology have come on leaps and bounds, with phone calls now a sideline to what they are used for.

Modern smartphones can browse the internet, take photographs and videos, stream films and television and download thousands of apps. As such, prices have risen with the extra functions.

Click to enlarge:

Increase: The price of mobile phones has changed dramatically since the early 1990's

The typical cost of a high-end phone is now more than half the average monthly income which currently stands at £2,535 a month, according to comparison website, Uswitch.

Samsung will launch its Galaxy Note 20 Ultra on 5 August at the predicted cost of £1,300 which is set to join the Apple iPhone 11 Pro Max as one of the most expensive handsets ever.

If the current rate of price increases continue, premium smartphones could reach £1,800 within five years, with costs currently doubling every ten years.

The average handset now costs £355, 14 per cent of the average UK monthly salary.

There is huge variety across the market, with budget phones like the Alcatel 10.66 on sale for £5, meanwhile, the Apple iPhone 11 Pro Max cost £1,149 at launch.

Mobile phones were very basic when introduced in the 1990's compared to now

Manufacturers also offer stripped-down versions of their top-end devices for reduced prices, however, with the 2020 iPhone SE costing only £419.

The average mobile phone in 2000 cost £72.50, equivalent to £123.80 in today's money, and could do little more than make and receive calls, send texts, and play games like Snake.

Handset prices in the early 1990s, when mobiles phones were an expensive luxury, were much higher than they are now.

The Motorola 3200 — the company's first portable phone - launched in 1992. Prices came down as mobile phones spread to the mass market, with costs falling as devices became smaller.

After 2000, prices started rising again as screens grew to let users browse the web more comfortably on internet-enabled devices.

At the same time, consumers are also keeping their handsets longer, using them for two years and four months on average at present, up from one year 11 months in 2016.

Click to enlarge:

High end smartphones have increased in price over 20 years & could reach £1,800 by 2025

Ru Bhikha, mobiles expert at Uswitch, said: 'Mobile phones these days do the job of a camera, music player, television and computer, but you certainly pay the price for having all that tech in your pocket.

'Premium smartphones broke through the £1,000 barrier a while ago, and there's no sign of the prices coming back down.

'We pay for our smartphones in manageable monthly payments, so it's easy to forget how much we're spending on these technological works of art.

'Although top-end handsets are soaring in price, there are models on the market to suit every budget, with the Samsung Galaxy A10 costing just £139, and the iPhone SE offering great value at £419.

'When you're looking for a new handset, take the time to compare the features of the phones on offer, find what's right for you, and make sure that you can afford the monthly payments.'

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I had one of the first phones on the market :ymparty:

Everywhere I went people flocked round me to have a look :ymhug:

Sadly phones have become so complicated that many people have problems making them work and other people have wander around glued to their phones

I confess to having a large phone for use indoors and a wee one for making and receiving calls outside but my work is down on desktops

Modern technology is fun :D
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The ups and downs of mobile phone prices



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