From one SEK and upwards

Erik says: When Good Phones Are No Longer Expensive

The price tag for the mobile phones we buy has varied over the years. That the best purchase would be the latest and most expensive has long since ceased to be true.

We only need to look at the ever-growing market for used and refurbished mobiles to see. Phones last significantly longer than a few years, and the second-hand market is proof of that. But it doesn't show the whole truth.

In the beginning, when the mobile phone first made its entrance, about 30 years ago, they were cheap. Partly because the base price wasn't as steep as it is today, not even for the very latest and coolest, but the operators also heavily subsidized the phones, so it was possible to get a phone for one krona, as long as you signed up for a subscription.

This made Sweden and many other similar countries a market for flagship mobiles, as the price was barely noticeable for the consumer, or at least it didn't show as clearly in the wallet. Because the subscription still cost money.

When the smartphone was introduced, this setup largely followed, but step by step the price tag increased and we had to pay more and more for the phone so it actually felt. But the development of technology and features was fast, so many of us still felt that we wanted and needed a new phone quite often.

Then two things happened. Or three. The pace of innovation slowed down and prices increased. The technological advancements year by year were no longer as fast, and as a result, we didn't feel compelled to change phones as often. Mobile manufacturers still wanted to make money, so they raised the prices of their phones.

And the third thing, in general, mid-range models became a better option for many. I particularly remember Samsung Galaxy A80. Traditionally, flagship phones had always introduced new technology, which then after a year or two trickled down to cheaper models. So you had to buy the most expensive to get the latest. With Galaxy A80, Samsung introduced a special triple camera that rotated and thus acted as both main cameras and selfie cameras in one. The screen and performance also maintained flagship standards.

This was five years ago and since then, mid-range models and later even used top models have become some of the most cost-effective ways to have a smartphone.

We can still notice that more is invested in flagships. For example, they often receive a few more promised updates, which is invaluable if you plan to keep your phone for a long time, or sell it on and let someone else handle it in its final years of life.

In the used market, flagship models are the ones that dominate completely and hardly any other manufacturer than Apple is present. The price development for the iPhone in particular has shown significant price increases. The iPhone 6, when it was released, cost around 7,000 kronor, the iPhone X cost 11,500 kronor, and now the iPhone 16 Pro costs from 14,500. Generally, however, as a small consolation, we can note that today's flagship phones, with their updates and performance, are expected to last for up to 6-7 years, which reduces the cost per year, as you don't need to upgrade as often.