Why Smartphones are CRAZY EXPENSIVE? Tech Garner

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In 2010 the very first Samsung Galaxy S 1 was launched at $400 and now it's 20/20. And the latest Galaxy S 20 retails for a whopping $1,000 and $1400 for the Galaxy S 20 ultra now that's a whopping 250 percent increase over 10 years to put that into perspective average wages in the US have increased by about 4 percent and house prices have increased by about 45 percent these values are not adjusted for inflation of course so you probably have a lot of questions why are they so expensive will price the stop increasing and where can I find cheaper alternatives all this and more coming up.

So in this post, I'll answer a couple of questions first is why smartphones are so expensive?

Second well these phone prices ever stop increasing and third a very affordable and good alternative to these flat chips so there are three reasons why smartphones are so expensive first component costs have increased over the years speaking the most sharply over the last couple years because each company is in a huge arms race to add better new and distinguishing features and their smartphones to stand out from the competition some recent examples are super high refresh rate displays insane for camera setups that can film in up to 8k and of course insane wrap around this place like this phone right here.

In addition, every couple years or so companies have to add support for new wireless technologies like new Bluetooth or 5g into their cell phones something that is not insignificant either the second reason is research and development smartphones are the one industry where customers expect constant innovation and R&D is not free not only do you have to develop new technologies and try it you need to do market research and figure out if it is something people even want the other side of that coin is that just adding new hardware features without properly optimizing the software to work well is a recipe for disaster. 

One huge example in recent times is the editions of three-four and even five-camera setups into one smartphone stuff like this takes time it takes iteration and it takes manpower you know engineers to actually work on the camera algorithm and stuff like this is basically diminishing returns so if you throw 50% more people at it doesn't mean you're gonna finish 50% faster doesn't mean you're gonna get a 50% better camera algorithm it keeps going down the more people you throw at it the final reason why phones are so expensive is that people are still willing to pay that much.

I see many many people who aren't making that much money but they're so signing up by two-year contracts that will cost thousands of dollars just so they can get the s20 now that segues us into the next point I wanted to talk about when will it stop when will smartphone prices stop increasing and there has got to be a breaking point, for example, would you buy the s40 ultra if it was $4,000. 

Now I know for a fact that not many people would buy that but that's an outrageous price what's the actual breaking point now in my opinion the actual breaking point will be somewhere around $1,500 for the regular you know flagship phone not like the ultra version for the regular version and then the ultra version will be somewhere around $2,000 however these are outright prices as long as the smartphone prices are hidden behind two-year contracts the breaking point could be way way higher that being said it's not all doom and gloom I've mainly been focusing on the flagship prices but now there are a million great options for super cheap they come from various manufacturers from Samsung Apple and even all the way down to the Chinese phone manufacturers that many people are not familiar with and that's actually where I want to focus my time today the one example I want to give is the xiaomi redmi note series this is a very very low cost phone that provides a great bang for buck and it's an insanely good cell phone for the amount of money you pay for it.

These phones typically cost anywhere between $190 all the way to 220 US dollars and that's like nothing compared to smartphone prices now at least the flagships and these phones typically have very good performance very very very good battery life and pretty decent software but these do have downsides too 

In fact that I know for a fact right now the first one is taking photos with these cell phones in the redmi note series typically suck when you're talking about low light just because they don't have either enough time iteration or money to throw at the camera problem so the cameras don't take very good photos and low lights the second one is that they tend to be massive phones like absolutely massive every single new redmi note they make is like huge and the latest one right now.

The redmi note 9s is six point seven inches big and that's just insanely massive I have a six-point four-inch phone or six-point three-inch phone and that's already feeling really really big to me with all that being said I still do believe the redmi note series provides the best bang for a buck the best value smartphone you can get right now however before you buy it I do recommend you check out reviews on YouTube to make sure it has everything you want and to make sure it works in your country now with all that being said if you don't trust phone brands from China like Xiaomi Huawei etc and the smaller ones I do encourage you to do some research as this fear of Chinese phones could be preventing you from saving hundreds of dollars but if you still don't.

after all the research I understands let me give you another option what I would actually recommend is go by the last generation flagship or even a two-generation old flagship so right now at the time there's recording the newest Samsung Galaxy phone at the s20 you can get an s10 which can be had for about five-six hundred bucks, or you can get an S nine which I've seen as low as three hundred dollars and at that price you're getting an insane phone for the money it's older, but it still works very well, and it's very very capable. 

So what do you guys think do you guys agree or disagree with me let me know in the comments below so till we meet again peace.

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