Mobile Phone Price These Days Is Insane

Just happen to read some news about the new upcoming Samsung Galaxy s10 and its projected price is somewhere between $1800-$2000. Samsung Galaxy Fold, projected price starts from USD1900 (CRAZY!!)

I know that new release IPhones have been in this price range for a while, but I just can't help myself to wonder, why does the price keep increasing and still many people buy it???

Let's ignore the fact rich people do have the spare money to buy it, but I had a mate who was willing to trade IPhone 8 for IPhone X within months along with paying extra $1000-ish for the trade.

What do you think is the reason people still buying those overpriced phones apart from being too rich that you are confused what to do with your money?

And how much are you willing to pay for your mobile phone?

Poll Options

  • 292
    <$500
  • 333
    $500-$1000
  • 70
    $1000-$2000
  • 12
    >$2000
  • 9
    Screw this universe, who needs mobile phone when you can send letter?!

Comments

  • +1

    its not unrealistic to pay 2k for a new phone, i got my first mobile in 1991, i paid over 2k for it then, the next two i purchased were over 2k each as well, all before 1996. If you want it and can afford it why not. my current S7 was purchased in 2017 for under 500, my interests have changed over time and i prioritse my purchases differently now.
    but i dont hesitate spending $100 on a bottle of plonk to drink on a friday.

  • +4

    I would never spend more that $200 on a phone. I don't see the point annd you can get very good performance from cheap phones these days. My current phone, an Xiaomi Redmi Note 4X cost $120 used on eBay. It's quite fast and does everything I need. In three to five years time, I'll replaced it with another cheap phone.

    My previous phone I bought new from China for $200 and got over three years of use from it before I decided to upgrade.

  • I could never justify spending as much on a mobile as that (ie. $2k could buy a cheap car), considering they are only really good for 2-3 years of use for most people.
    However, the majority of Aussies buy these flagships on a plan, and spread the cost over 24months. Overases markets like USA do it differently though, which is why iPhone doesn't have such a stronghold there.

    • +1

      I’m pretty sure your $2k cheap car wouldn’t last 2-3 years and it’s ongoing costs maintenance/rego costs are greater too. Additionally if you’re the kind of person that buys a $2000 car you’re probably not the target market for these high end phones…

      • +2

        Rego costs are pretty much the same for any car, insurance is less for cheap cars. As for maintenance and reliability, depends on model. Old Japanese cars can be great at this price. I've had $3k cars for a few years with no issues, low maintenance costs, and we recently bought another that is in even better condition.
        And after a few years, they sell for about $3k, so there is less depreciation than these phones.
        We've had some much nicer and more expensive cars too, and they almost always have more issues and higher maintenance costs.

        This is actually pretty normal, but people who don't know anything about cars assume that new & expensive means easier to deal with, with cheaper ongoing costs. So they figure it's easier to throw money than to try to understand what they are actually buying.

        It's the same with phones. People don't understand them, and sometimes get annoyed with them. And then something more expensive comes out and they assume the extra money means it will be less annoying. Now they are really expensive and clueless people just assume that cost is balanced somewhere, when it simply isn't. The only real reason to spend so much on a phone (or a car) is to have a nicer thing.

      • I bought a $1500* car in March 2015 and usual maintenance and wear items aside, it's been perfect.
        It's no oil painting though.

        *That was the ask, I paid $800.

    • Phones now days easily have a life span of 4-5 years though. People only change them because they want the latest/fasion etc.

  • What a ridiculous price for a piece of android/Samsung device!

  • It all started few years ago when Apple launched a AU$1,500 iPhone.

    Then Samsung followed suit with their flagship which cost around the same.

    Then Google followed suit with their Pixels which also cost around the same.

    Then Apple followed suit and launched an AU$2,000 iPhone.

    Ad infinitum. Now it's just race to the top.

  • -1

    Speaking of absurd price for mobile phone….here comes the new one that is going to set a 'new standard of price' in the market:

    https://www.news.com.au/technology/gadgets/mobile-phones/sam…

    US price appro starts from $1900…which going to bring us for around AUD $2600ish…Oh my.

    • +5

      I'm sorry but all this faux outrage over the Galaxy Fold pricing is silly and shows a lack of understanding.

      Samsung is leading phone innovation and is bringing out cutting edge, best in market products. Samsung is obviously not making the Fold for the 'every day' person as you are paying not just for the exotic material build cost but also considerable R&D that goes into a new technology. Just like every other tech innovation in history, the first products are always priced out of reach for most people but each new generation makes it more accessible. I doubt Samsung even expects to sell many of the Fold, but that's not the real purpose, which is to introduce the concept to the market.

      It's like whinging that the Tesla Model S is not affordable - why would anyone spend $200k on a car that does the same thing as a Camry! Electric car prices are out of control and anyone who buys a Tesla is a moron!!

      • +1

        Exactly. Samsung themselves even said the Fold is a luxury device.

  • +1

    what's the difference? complaining about it isn't going to make the price lower

    At the end of the day if you run a business you will find a way to maximize profit

    Its clear 90% of ozbargainers have never run or owned a business before. If you run a business you will do everything you can to maximize profits.

    Why don't you blast Woolworths, coles and all the giant corporations that rip you off every day?

    Its supply and demand. Everyone wants something new and shiny and either way people will pay.

    If you're on a budget then go the nonflagship phones and move on with your life.

  • +1

    It's ridiculous how the phone prices has almost reached parity with that of laptops!

    Salary sacrifice makes the price much easier to swallow though.

  • People pay it because they are sheep and / or for the status of it and to say they have this phone or that phone and they got it when it first came out etc.

  • +3

    I've been preaching for years that no one should be spending any more than $500 on a phone. There has been ZERO innovation in a good 4 or 5 years now.

    The foldable phones however might be worth the price of admission. They are actually a legitimate useful and innovative feature. That being said, I'll probably wait for xiaomi's foldable offering to decide who to drop money on, but I wouldn't rule out paying 2k for a foldable phone which could allow me to leave the laptop at home and get some serious multitasking done.

  • Just spent $1,200 on a Note 9. The prices have gotten crazy, but so have the quality of phones and what you're getting for the price

  • People get caught up with the newest and coolest thing, even though there is little to no benefit. Sooner or later obsolescence will become mandatory.

  • And they still basically do the same thing as what they did 10 years ago. And at the core even longer then calls/text that.

  • Why? Exchange Rates, shipping costs, GST, our Australian consumer law requiring extended warranties and easy replacements.

    USA does not have to deal with any of these issues. Warranties in particular in the USA are extremely limited. The Australian Govt protects us in this instance, but the companies have to recover the money from somewhere.

    Will I pay? I need a new phone, I am holding off as long as possible.

  • Visit Ozbargain and you won't spend more than 1000 buying your next phone, providing you do some research and make rational decisions 😉
    People have their own money and we have options…

    You can choose among Xiaomi, Huawei, Apple, Samsung, and so many other brands, and so many different models. If you want an iPhone or the last flexible phone from Samsung that hasn't been released yet, you gonna pay for it.

  • +1

    Funny most people vote <$500 in reality you can't get a decent phone under $500

    • +8

      Please surrender your OzB membership.

    • +2

      You can. You have to look for the right product at the right place.

      • -1

        No need to buy flagships. I mean even Oneplus 6t cost more than $500

    • Nokia 8 on Tobydeals, good phone.

  • I'd pay a hefty price for a phone if it lasts longer than the norm and has a longer life span, ie. updated/supported for longer.

    Here I was thinking the Nokia 8810 back in the days was crazy expensive or when my cousin bought a Nokia 5110 for like $1200 outright.

  • +1

    Every year people complain,yet every year the prices go up and people still buy them and the companies keep making profit.

    No one's making anyone buy anything, most people upgrade from their 3 or 4 year old phone and are happy.

    But still, every year we get the usual "phones are too expensive or OMG a notch! Guess I'm sticking with my Nokia 5110 for another year"

    Meh.

  • -3

    Don't bother with Korean phones anymore. Jump ship to mid tier phones from Chinese companies. Huawei, Oppo, Xiaomi and Oneplus. They made great mid range phones at good prices.

    • Do you think neonlight's phone posted this by itself when he wasn't looking?

      • -1

        lol I'm using a different phone with Samsung internet browser installed. you got no idea. Don't try to play smart. and nag people for nuffin.

        If you didn't know you can get Samsung browser on other phones then you are wrong too.

  • There's nothing wrong with the prices of Phones. It's Human Nature to spend more than you need for a "Status Symbol" and that's the case throughout Human History.

    For example, women buy expensive $2K Chanel or Louis Vuitton Bags when a $100 Generic Brand one will work just as well. People drive luxury cars such as Rolls Royce, Mercedes or BMW when a Toyota Corolla will get you there just as fast.

    • this comment hit home hard

  • Screw this universe, who needs mobile phone when you can send letter?!

    • Go ask the lazy postman! Screw them and auspost!

  • +2

    These prices are making me use my phone for longer.
    I used to upgrade every 2 years now i do it every 3-4.

    A galaxy S7 ain't too different from the current flagship phones.

  • What you're missing is that overall mobile phone prices are actually incredibly reasonable. Probably more reasonable than ever before in the history of the smart phone. The issue is you're looking at the premium market, and ignoring mid ranged. Mid range phones these days can be insanely good. Often as good if not better than many flagships that are twice the price. Even companies like Samsung give some decent love to their mid range devices.

    So anyway if you think that mobile prices are insane, stop buying $1500+ phones and in general stop buying Apple because their idea of a mid range phone is either an old phone or $1200.

    I'm all for products like the Galaxy Fold and other devices with its insane price existing if there's a market for it. I won't spend that much but good for you if you can afford it and want to get one. So long as there are good cheaper options (and there are MANY) then it makes no difference to me.

  • -2

    People here have to understand that 80%+ of the population are complete tech noobs. They buy iPhones or Galaxy S phones because that is what they know, and they are certain that they will get a reasonable phone despite the high price. They also like the fact that they can walk into a Samsung booth or Apple store and have a good whinge to a real person.

    Sure, they could try and buy a Chinese budgie phone. They'd probably be quite happy with it, but they're not the sort of people to trust their credit card details to aliexpress.com, and quite frankly they would have no idea what to buy. I have had enough trouble as it is trying to persuade elderly relatives to dump their overpriced Telstra plans.

    • +2

      Maybe they like the fact they get a phone with regular updates for operating system issues and improvements. They also like a warranty that means something and not jumping through hoops to get a phone fixed/replaced. If you read this site you see complaint after complaint with people dealing with offshore companies when they have an issue. You don’t need to insult people just because they have different priorities.

      • It wasnt intended as an insult, after all Im using an S6 at the moment that I happened to pick up cheaply. Its a perfectly good phone. Just pointing out that most people will stick with what they know, irrespective of how good the alternative is.

        • +1

          It wasn’t exactly flattering to the majority of people and the statistics sounded like you pulled them from thin air. (I did clean up that comment to stop myself being banned).

          The “alternative” includes the need to take on a new ecosystem and having to deal with suppliers that may be less than cooperative if an issue arises with their imported cheap phones. I would also like to see the cameras of the cheap phones stacked up against the expensive ones.

          My current iPhone 6 Plus is still going strong more than 4 years later and it still gets IOS updates. I could’ve gone through a number of cheaper phones in that time, probably each more annoying to set up than the last, but my preference is to buy once and keep until the next big step happens. I’m not a tech noob but I really don’t want to waste my time dealing with buggy cheap end phones that are dropped like hot potatoes by their manufacturer and distributor.

  • This is OzBargain.
    You should have a < $50 category listed.

  • I’ve worked hard all year and treated myself a new iPhone XS for bigger OLED screen better camera and Face ID. Also grabbed the new iPad Pro for better screen and design as well, didnt get the Pencil 2 though as I have no use for it.

    Other than these gadgets I didnt really spend on anything fancy rather than daily expenses and yearly clothes (from Uniqlo).

    So these gadget prices are a bit high not insane, but it all comes down to affordability of different people.

  • -1

    My phone is now my credit card, drivers license, blood donor card, and entertainment device which I’m clocking over 5 hours of screen time on each day (and that’s before I get home and switch over to the iPad).

    I need Medicare, health insurer and library to make an app version of their card, and I can ditch the wallet totally.

    Our lives are in the phone, so why cheap out with a buggy, slow device?

  • early adopters have and always will buy at premium prices, but they are only a handful of the general population.

  • +1

    tempura on 19/02/2019 - 15:45
    Utter dumbness, enough said

    jrowls on 22/02/2019 - 00:34
    Is it a good thing to be spending that much time on one's phone though?

    Taro Milk Tea on 19/02/2019 - 16:06
    It is indeed a waste of money!

    blindingshadowz on 19/02/2019 - 16:12
    It's absurd isn't it?

    SDF05 on 20/02/2019 - 01:07
    Unfortunately, as long as it's trendy,

    lonewolf on 21/02/2019 - 14:25
    People pay it because they are sheep

    SkMed on 21/02/2019 - 14:34
    I've been preaching for years that no one should be spending any more than $500 on a phone.

    Such moral outrage!

    One would think the discussion was about clubbing baby seals, or the scandalous lengths of young girls' skirts nowadays.

    Look at the terms people are using:

    • dumbness
    • good thing
    • waste
    • absurd
    • unfortunately
    • sheep(le)
    • no one should

    These are all moral judgements, not sound reasoned arguments.

    Apart from those who do not seem to comprehend that modern smartphones are in effect, supercomputers of just a few years ago, and others who still live in a Jurassic-era of thinking that 'phones are just for making phone calls', we have the wowsers. Those self-appointed moral guardians who seem offended that other people may actually gain satisfaction or (gasp) pleasure from these amazing devices.

    Why are these people so upset that millions are prepared to spend up to $2k on a smartphone? It does not affect them in any way? My owning an iGalaxative S10 Max or whatever does not cause little children to burst into tears, or puppies to die.

    I can only assume such conspicuous spending, on such a useful, and indeed, beautiful device undermines the fundamental moral fibre of society in some manner. That we should not have nice things because… ummm… well, just because.

    Sure, present comparative value, or ROI arguments. And maybe find fault with poor manufacturing processes leading to exploitation or health or injury issues with workers. But I thought we had moved beyond some kind of Calvanist puritanism of self-denial, and its consequent hypocritical condemnation of others' enjoyment of life.

    • +1

      Hear, hear. I could live in a hovel in the middle of nowhere and it would still be liveable accomodation but I choose to live inner city because I like the ammenities there; even though it costs me much more. Some people who post on here seem to have the same views, and tolerance of others choices, as the puritans. In the words of Blackadder’s aunt “two spikes would be a luxury”.

  • -1

    2K phones have their place. IMO people who say their $100-200 phone works just fine yeah for you but i bet that for me it would not be anywhere near good enough.
    People who use their phone a lot (especially for media) need good phone with good batteries. There is just a clear inferiority between a $200 phone and a 2K phone.
    Still i think 1K is the sweet spot for a new phone. And i get it your $200 phone may be good for you, but you probably dont use it to the extent as others would use their phone.

  • I think the price is set because people are willing to pay for the trend/tech/brand.

    There are 101 options out there, if a 2k phone is not for you then you are not the market segment they are targetting ^_^

    Other than that when is the last time anyone had not use a mobile phone a minimum for a day/week….I have not done so since I was forced a mobile phone by my boss on my first job and that was 20 years ago.

    The convenience of information and connectivity at the palm of your hands.

    Wife is glued to it every night even though we have an 85" tv, she prefers to watch Netflix with her tiny mobile over the bed this is how bad the addiction/convenience it is.

    So if you ask who will pay for an expensive phone like the upcoming Samsung F or PS5. I would but I will use ozbargain to survey which has the best price/bundle value to it. Most likely I would buy it with a Telco bundle.

    I admit I am addicted to my mobile/s and it has become a part of the everyday necessity.

  • What I've noticed is that functionally the difference between each year's phones is narrowing. Like the iPhone 4 was amazing at the time and then when the iP5 came out and I upgraded it was significantly faster, camera way better etc. But since the iPhone 6, each generation has been less and less significant compared to the last.

    So I think we've reached the point where you can buy a lower grade phone, or a phone from 3 years ago and it'll work fine. My current s7 works well and I have no plans really to upgrade.
    So with that and early 2010s phone prices in mind I wouldn't pay more than $1000 for a phone.

    • For me the difference is the camera, which is why I’m considering updating from my iPhone 6 Plus. I’m not a blogger, or selfie fiend, but I do use my phone for taking my holiday pictures. Given what I’m paying for the holiday a good phone/camera is the least of my expenses.

      • Myth. Wife took some awesome holiday pics with a $120 leeco Chinese phone. Friens and family were surprised at the quality. All about the photographer.

        • Not a myth; friends aren't going to say the pictures are awful :). The photographer does help, but the camera is also important.

          • @try2bhelpful: Lol you don't know our friends. Massive diminishing returns with these so called flagship phones. Every 6mths they add a few pixels and/or some marketing jargon to sell more phones.
            My cheapo phone is perfectly adequate for holiday pics

            • @gimme: "perfectly adequate" is not really what I'm aiming for but each to his own.

              • @try2bhelpful: Of course, but I'm sure a real photographer will say the same thing about using a phone for that purpose as opposed to an actual camera. But yea each to their own

  • I agree that prices are astronomical.

    My point is more on Android trying to keep up with iOS.

    I loathe iOS and have never bought an iPhone, but I do own an iPad. iOS frustrates me to no end BUT iOS devices are supported (meaning you can own it for longer if you care about currency and security updates) way longer than Android devices - so the burden upfront is lessened as you can have the device for a longer period of time.

    You can't do this on Android. Max 2 years support on most OEMs - although Samsung is still giving security updates to the S6.

    This is my main gripe. Given how frequently and heavily I use a phone, I'd be prepared to spend what they're asking if Android OEMs could guarantee the latest OS updates for 5-6 years.

    This forced obsolesce is disgusting. In an ideal world, we should have replaceable batteries, SD card slot and updates for more than 2 years.

    • Are they gonna stop giving updates to the s7 this year? Ridiculous if so.

      • +1

        You should receive security updates, but no more OS updates.

        Android phones usually get 3 years of security updates and 2 years of OS Updates.

        LG is probably the worst. My V30 is on an August security patch running Android 8.0

    • Yup, I agree with you on the IOS upgrades. My iPhone 6 Plus is still OK for updates and it was released nearly 5 years ago. I also agree my iPad gets a lot more screen time than my iPhone. It is mostly “phone” functions, hotspot, music, Podcasts, camera, pedometer and when I can’t be bothered hotspotting the iPad.

  • +1

    Plenty of phones on the market. Bought a Samsung J2 pro for my dad for $180 it way better than his old iphone 4 junker.

    No way Id spend more than $1k on a phone. Have a S9 and does the job. Next phone will be probally $500 range. No point in high end phones IMO

  • The high end phones have always been over $1000 - from back in the day of the older analogue phones to the top end Nokias (Communicators, top N Series etc) and the highest capacity iPhones. These are from 10-15 years ago and these days, it really is bumping the price back up due to slower mobile markets and just corporate greed.

  • I agree that the prices are getting out of control but knowing Android phones, hoping if I can hold out for at least 3 months I will see the cost of the S10 drop to under $1000 with some help of ozbargain + cashrewards!

    That's where I draw the line though… Don't think I can justify spending much more than that considering there are so phones which work just as well for much less

  • -1

    Agreed, but who's forcing you to buy the current flagship models? Of course they're expensive. You can buy last year's flagship for about 30% off the price of this year's. And then the one from two years ago is about half the price of the current model.

    Personally, my strategy is to buy the midrange model from two years ago. It maximises my depreciation savings and still gets me a nice phone when I have to replace. My Galaxy A6, bought two years ago for like $380, is still doing great.

  • I have an XS Max 512gig because it was free on my unlimited data plan. I don’t mind spending more money on a phone because it gets more use than my tvs/consoles/pc. It’s the first phone I’ve ever owned where everything is perfect for me. Screen is the same size as a switch but better, great for Netflix. Don’t need to carry my bank cards or license anymore because they’re all on the phone. Even better I can go out and leave the phone at home and still get messages and phone calls on my watch. Probably won’t upgrade till it stops working completely. Well worth the total plan costs.

  • I'm still waiting for note 9 or mate 20 pro to go down :(

  • +1

    A more important question in my mind…

    Now that smartphone prices have hit such astronomical heights, how long will people (and those responsible for enforcing the ACL) continue to accept the lack of durability of the products in this market segment.

    How is it that a portable device costing close to $2k that will often not survive a drop from waist height:

    • Is considered fit for purpose under the ACL?
    • Is not considered to possess a major fault under ACL?

    Is is not unreasonable to expect such a costly mobile device, designed for handheld use to be resistant to critical failures when dropped as part of normal use?

    • How is it that a portable device costing close to $2k that will often not survive a drop from waist height:

      Put a silicone case around it. Problem solved.

  • I’ve had the latest iPhone every year on release day for awhile now without spending an unreasonable amount of money.

    • Buy outright
    • keep phone in good-excellent condition
    • claim price protection when price of phone drops (28deg, coles mc)
    • sell used iPhone privately when new one is released

    Costs me $200-300 per year to upgrade. Helps that iPhones have a crazy resale value.

  • I say make it as deluxe and feature-full as possible. 5K is the limit. Fully kitted out Galaxy Fold will reach $3500 probably so it’s not out of the realm of possibility. I think in the future it’ll be billed as a phone/tablet/laptop replacement ultra device to justify the incredibly high prices.

    That said, 12GB RAM, 1TB Storage. The last phone you’ll need till 5G is mainstream. 2020? 2021? Who knows.

  • +1

    I feel it's a cost to amount of use thing. Some people use their phones just for calls or messaging which is cool and they would only need a cheap device but some use their phones professionally or for long periods so could justify spending more money.

    For myself, I would spend more time on my phone per day than in my car so I can totally justify spending 1-2k on a device. I use the large screen to make emailing and ordering easier, my phone has a stylus which is super handy for rough designs or quick note taking (and saves on wasted paper, woo!), it has a good camera for documentation and dual SIMs which is handy.

    All up, $1500aud is reasonable for me to spend on something that makes my life so much easier.

    And every 12 months, my partner gets a 1yo 'flagship' phone for free!

  • Insane only if you have to buy flagship

  • +2

    Because paying $70,000 for a Mercedes Benz is worth it, but paying $2000 for a Samsung is unwarranted. Why do people justify the price for overpriced European cars but not hand held computers?

    Go home, son.

  • We really hit peak mobile technology when the s7 came out.

    Solid device and great price.

  • Yes, the cost of high-end phones is getting a bit ridiculous, but for some of us it's still worth it. I'm normally a very frugal person. Virtually all of my electronics have been purchased second hand for a very good price. My phone is my one "vice" where I'm willing to pay big dollars. I bought an iPhone X ($1829) the first week it was released and I have no regrets. It's a beautiful phone that does everything I want very well. I'll probably keep it for three years, so that's less than $2/day. Factor in some resale value and it's probably more like $1.25/day. That's a minuscule price to pay for something that is useful and enjoyable every single day.

    • OzBargainers generally don't spend $2/day for phone device. Your definition of frugality is definition.

  • +1

    Is the users fault for keep failing for the those new phones. Why you need the latest and greatest phone every year? Why not some off-brand Chinese phone that have almost the same hardware for the half the price? Some people just want to feel special for being able to afford such expensive product, it's social status indicator. If people stop buying those phones there price will start to drop. There is not other expense (other that research and develop cost) to make those Iphones and Samsungs so damn expensive.

  • My current phone is an iPhone 8 which I purchased outright shortly after it came out. It cost something like $1400 (256gb model). I don't think I'll buy a new phone for another 2-3 years, it's just not worth it anymore.

  • You don't really need to pay much for decent phones these days. Some Xiaomi phones are excellent and hardly cost even $500. It's not the only cheaper and decent brand though.

  • -1

    I thank the buyers for their service to my super fund. I on the other hand buy $300 phones and invest the rest, it is the gift that keeps on giving.

  • 'Too expensive' is about affordability not value. Many of us can't afford these phones, even if we think that they might be worth the price.

    Anyway, would you really tell Samsung or Apple to stop making phones you can't afford?

    Personally, I love new technology, and I love the idea of these phones. But, I wonder if new flagships are just a status symbol for some, and a step towards financial catastrophe for others. I think that they are, which irks me, on both counts.

    I might own an S10, one day. A big thank you to all the early adopters who make that possible. I hope it didn't break the bank.

  • In fairness, I remember the fancy metal slide Nokia with the white backlight went for almost a grand. I think you do actually get what you pay for, but whether you need what you are paying for or not is another question.

  • Happy with my Nokia 8.

  • Coz on a plan it’s not much really.

  • +1

    I use my phone all the time, it has heaps of functions, it's in my pocket every day. It cost around $1050, for me it's a worthwhile expense.

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