Price Gone So Down! (Blog #2 Price Decrease of Mobile Phones)

Samsung Galaxy S4

  

      According to Aaditaya, Galaxy S phones are flagship phones.A Flagship product refers to the absolute best manufacturer can give with the available technology at that time. Samsung cannot just make only one of them and let go. If they make a Galaxy S5, they cannot price it too high for S4 to retain its price. If they do so, they would be risking competition and user base.

As a result, S4 gets dropped to around ₹ 32,000 while
S5 was priced at around ₹45,000 on 2015

Now the depreciation affects S4. Though the official price is ₹ 32,000, the phone would be selling at around ₹ 25,000 to ₹ 28,000. Then comes Galaxy s6 and the same thing happens with it.

Since the technology is updating, the prices for new technology will drop. The price of older technology will drop even further.

Why does the price of mobile phone decrease?

          Mostly the market works on supply and demand principle. When the phones are launched the demands are high and supplies are less than demand so the prices are more.
When the phones are launched the companies spend huge amount in marketing.
When the time goes companies dont need that much of marketing for prevoius models thus reducing marketing cost and thus reducing price later in time.

As the time goes the demand goes down so to make the profit from previous models company decrease the price. Moreover, as company keeps launching new models in the same price segment. The companies reduce the price to kill the competion from their own previous models. 

~ https://www.quora.com/Why-do-phone-prices-decrease-after-a-certain-duration-after-launch

Predictions on Mobile Phones for the Next Upcoming Years

   

     As of today, mobile phones are considered as a necessities for this generation. Almost all  of the population are using mobile phones in their daily lives. Remarkably, phones of today are increasing in supply but the demands are decreasing. Phone manufacturers launch new mobile phones every year. 

      According to the research findings of Statista, the average selling price of smartphones worldwide from 2010 to 2019. In 2014, smartphones were sold at an average price of 291.1 U.S. dollars worldwide. In addition, The global average selling price of smartphones reached the highest figure to date in 2011, when these devices were sold for an average of 348.6 U.S. dollars. Since then, the average selling price of smartphones has constantly declined, going from 332.5 U.S. dollars in 2012 to 276.2 U.S. dollars in 2015. By 2019, this figure is forecast to drop to 214.7 U.S. dollars.

     Based on the findings,  in my own perspectives, after 10 years and so, the prices of mobile phone will soon severely decrease since new advance technology are discovered and tested. Soon enough, phones that are out of date as of today, will soon be sold in much lower price from its original price. Most old model phones will be just in stocks ready to be given as donation or as give aways. If the price of Samsung Galaxy S4 decrease from 32, 000 rupee to 28, 000 rupee after 2 years (2013 -2015), then after 10 years(2025), the price will soon drop to 12,000 rupee to 8,000 rupee.