The trio of Galaxy S20s shows that premium smartphone prices are being pushed to unbelievably high levels. Even the S20 Ultra model costs more than the Galaxy Z Flip folding phone.
In the early hours of February 12, Samsung kicked off its Galaxy Unpacked event in San Francisco with a video introducing its second foldable smartphone, called the Galaxy Z Flip. Rebecca Hirst, head of Samsung communications in the UK, said it would “be unlike anything the user has ever experienced before”.
Hirst continues her work by introducing specifications and special features on this device. Finally, the Galaxy Z Flip was announced to cost $ 1,380.
However, this is not the most expensive smartphone that the Korean technology giant introduced at the event. The Galaxy S20 Ultra, the most advanced model in the Galaxy S20 trio, is offered at a starting price of $ 1,399 . This figure is up to 1,599 USD if users want to choose the 512 GB version.
Samsung’s event is pointing to a disturbing situation of the smartphone industry today. In 2017, Apple shocked the world when it launched the iPhone X for $ 999 .
At that time, many people were skeptical about how many people were willing to spend such a large amount of money to own a phone. However, the battle between Apple and Samsung in the high-end mobile segment is making more and more devices priced at over $ 1,000 .
Apple’s latest iPhone 11 Pro and 11 Pro Max models are priced at $ 999 and $ 1,099 respectively . The 512GB version of the 11 Pro Max model is offered for sale at prices up to $ 1,499 . And when looking at Samsung’s new Galaxy S20 generation, users will be forced to spend a minimum of $ 999 if they want to own one of these models.
Even Motorola is selling its 2019 folding Razr phone with a starting price of $ 1,500 . Sadly, this model only has a plastic screen, low battery capacity and average camera quality. However, consumers are very excited about this high-priced phone model. That also caused Motorola to delay the sale due to high demand from users.
As can be seen, contrary to the doubts two years ago, smartphone users seemed completely ready to spend over $ 1,000 to own a high-end mobile device.
“Users are paying more attention to high-end products,” Maurice Klaehne, an analyst at market research firm Counterpoint Research told CNN Business .
Klaehne adds that the high prices of high-end devices in recent times partly come from users using their phones longer before deciding to upgrade.
“Apple and Samsung have reached the peak of their smartphone sales every year. So they’re looking for ways to maximize profits,” Klaehne said.
Klaehne also said that Samsung is relying on new technologies such as folding screens and 5G to be the reason for the price increase. However, as these technologies become more popular, smartphone prices will be forced to drop.