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One Of The Reasons For The Rising Price Of Mobile Phones Is The Rising Price Of Smartphones

One Of The Reasons For The Rising Price Of Mobile Phones Is The Rising Price Of Smartphones

Feb 02, 2018

 Review of the intelligent mobile phone market in the past few years, we can clearly see that mobile phone price trend is more and more strong, whether it is thousand machines or high-end flagship machine, various models of the prices are relatively large increase, Meizu, millet has announced that its low-end product prices, in addition to Samsung Note8 mobile phone in the domestic price to 6988 yuan started, Samsung Note7 sale price is 5988 yuan, Note8 is in the Note7 on the basis of the price increase for 1000 yuan. It is worth mentioning that Note8's hardware cost enhancement may be more focused on the camera (the Note series first postposition double photography) and the screen side. IPhone X, which was released last year, has reached an unprecedented high price of 9688 yuan. What is the result of the rising price of mobile phones?


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  In this wave of mobile phone prices, the rise of raw materials has played a major role. According to observation, over the past year, copper foil and copper clad plate have been out of stock for a long time, and it seems that there is no trend to stop. Not only that, the upstream supply chain out of stock news also reported not to stop, the world's largest supplier of copper clad laminates has repeatedly issued a notice of price increases.


  As we all know, in the cost structure of smart phone, the main chip set, front and rear camera, display screen and touch module and storage module account for almost four parts of the cost of the whole machine, which account for 50% to 70% of the total cost. So, because of the rising cost of raw materials, mobile developers and suppliers can only deal with this pressure by raising prices.


     The floatation of the mobile phone panel has been well known in the week. At the end of 2015, the upstream industry chain said it was not optimistic about the mobile phone market in 2016, and the result was a serious lack of production plan for panel manufacturers. Panel prices have declined once, and panel manufacturers also have serious losses, and many manufacturers are forced to reduce production. But at the same time, while the mobile phone panel reduced production, the mobile phone market had a turning point, a good one. As a result, we have seen the situation that the cell phone screen is in short supply, and the price has almost doubled or even higher. Even if it is rich, it is hard to buy a screen. It is understood that, not only the mobile phone screen, the other three big elements also have different degrees of increase. In addition, mobile phone duplex, filters, crystal oscillators, battery materials and other important components, are also due to the shortage of goods resulting in higher prices.


  In fact, in addition to the cost of components and other important components, the downlink of the RMB exchange rate is also the main cause of the increase in the collective price of the mobile phone. In the mobile phone industry, most of the key devices are quoted in U. S. dollars, and the depreciation of the RMB will lead to the increase in the cost of mobile phone manufacturers.


  However, mobile phone prices continue to rise, there are also reasons of mobile phone manufacturers in product positioning overstating. More and more mobile phone brands not only pursue higher collocation, but also make great efforts in appearance and technology, so the price is rising naturally. What can be seen is that in the past 2017, the quality of the domestic flagship mobile phones has been improved.


  Based on the above analysis we can see that the cost of components increases, the RMB exchange rate decline and mobile phone manufacturers is an important cause of mobile phone price rising for their own mobile phone brand and overstating, for consumers, is expected to launch smart mobile phone manufacturers cheap products, bring people experience more value of science and technology.