The problem is that smartphones are way too expensive. Back in the old days of dumb phones a top end SIM free phone would cost no more than €400. Most people would opt for a cheaper model that allowed for a 12 months subsidy with the phone being free and monthly fees being fairly low by todays standards. In the UK it was common to find deals where you got a cheap phone for free, plus a game console or TV on a 12 month contract.
Now it has flipped. Top end phones are now nudging €1000, this means higher monthly fees plus 24-36 month contracts. That's a hell of a commitment, especially considering smart phones aren't as durable as dumb phones were. Of course people are repairing phones when they cost that much.
Plus, there is less of a feature incentive to upgrade. All I use my phone for is web browsing, email, social stuff and photo/video - it's three years old and does all that with no lag. New models don't offer me enough of an incentive to upgrade.
If manufacturers want people to upgrade more often they need to work on curbing the price of top end models. The more expensive they are, the longer people are going to want them to last. Also, a bit more innovation would be nice - must every smartphone follow the exact same black rectangle design template?
No.
People keeping their phones longer is not a problem. People creating less trash is not a problem. People choosing to hold on to their money rather than pumping it into tech companies at a furious rate is not a problem.
I have no idea why people feel the need to spend 6 or 7 times more for the latest iPhone. What do you get for the extra money that is actually useful? I know it has a "better" screen but I never had a problem reading on the phone I have. Faster processor? Are people performing heavy computing on their phones, or just sending some whatsapp messages ans surfing the web?
I got my current phone for 160€ (if I'm not mistaken) 1.5 years ago and I couldn't be happier. Browses the web perfectly and runs my few apps great, I'll keep it until it breaks. I'm so happy that I'm even considering buying an extra screen to have reparaibility in the future in case they are hard to find then!
It's funny that many of my non-tech friends who spent half a month salary on an iPhone (Spain) are quite confused about me using a cheap android.
Edit: also note that my 160€ phone now is way better than those 400€ phones 6-8 years ago. And there's not even that much difference with a current 800-1000€ phone.
I buy a $50-100 phone every 12 months though! (At the low end, specs are still rising quickly.)
While I agree that lowering the price of a phone will increase the rate of upgrades, I don't think increasing the rate of upgrades is an end in itself for anyone including the manufacturers. If I can sell you one phone for $1000, that's almost certainly going to be better than selling you two phones for $500 each. It front-loads my revenue and most likely costs me less. For the two phones to be better for the manufacturer, they'd need to be taking the lowest margins on their highest-end phones, which is weird.
Selling you a phone every several years means less upgrading compared to selling you one every year, but it also means a lot less work for me. I feel like the actual equilibrium is "manufacture fewer phones".
> Also, a bit more innovation would be nice - must every smartphone follow the exact same black rectangle design template?
I'd settle for the rectangle being available in the same form factors people used to sell. We didn't just converge on "rectangle", we converged on "rectangle so oversized it only makes sense as a laptop substitute".
The problem with smartphones is that they've solved all their problems and the cheap devices are just too good.
People check out new smarphones when they are considering buying a new one. They (mostly men) are not so interested checking out new phones all the time as they used to be.
Only thing can think of that could change the trend is AR/VR (Augmented Reality/Virtual Reality) really starting to deliver.
Me and my girlfriend both own the Sony Xperia Z3, which had a cutting edge camera when it was new.
I upgraded to the Galaxy S9 a few months ago, she still has her Z3. The advancement in photos is striking. It's incredibly noticeable, especially the reaction time after pressing the button and the low light performance. To a point we explicitly use my phone to reshoot images we already did on the old phone, if we like the motive. I upgraded mostly because 16GB internal space wasn't enough for me anymore and Android keeps bloating. But if I had experienced the camera difference before, it would have been enough to make me upgrade.
From my non-professional perspective the only thing lacking to a real camera is optical zoom. Otherwise I'm positive many shots of the S9 turn out on par or even better than mid-level Canon/Nikon reflex camera shots, if taken at the right distance.
The camera market is getting more and more redudant for non-professional use cases.
I have one and it is excellent.
I just bought a new TV with Roku built in. My last TV was a tube TV.
I’m writing this on a iPhone SE, which I upgraded to for $100 when my 5S stopped working. I kept the same phone case. I’ll probably buy another iPhone when they release a new one with the same size screen. I might get a new phone case then, too.
I was playing Zelda on the original Wii earlier. It’s the newest game console that I own.
Don’t get me wrong, I think new stuff is cool, too. I’d just rather go on a trip than have the newest cool thing.
Pros: better camera, faster processor, water resistant
Cons: no headphone jack, too large for my hands
It's not obvious that upgrading would make my life better - it's more likely to make things worse, actually. I'm not paying $1000 for that.
As phones are becoming commodities like computers, I wonder if Apple will meet the same fate in mobile as it did in computers: being marginalized as a niche player in the market it pioneered as most people flock to the mainstream choice (Windows for computer, Android for phone)
Camera is infinitesimally better. Processor is better in a way you can’t measure. Oh now you can push anywhere to use your fingerprint!
There’s no more cash cow cuz phones aren’t getting noticeably better. Get back to me when I can stop using my thumbs to type or when the world becomes my monitor. Maybe I sound entitled but some day the bullions these companies keep expecting has to be justified.
1) Decided on a minimum acceptable functionality for a device
2) Set up uncompromising logistics chains to support creating a device (eg, famously, touchscreens)
3) Price at a rate that was extremely competitive when considering the device components
4) Crush competitors who could only offer cheap goods that didn't really do what Apple's could, or expensive goods that could match functionality but not price - recall the iPad's original differentiation was it was cheaper than expected, given what it did. It looked very cheap compared to the preemptive tablet releases of the time trying to head its success off at the pass.
They've made a lot of money over the last few years, but that strategy doesn't seem to match the modern Apple's approach. The price gap between an iPod Touch and the cheapest iPhone is not something I'd have expected of 2010 Apple.
EDIT I looked for a source - https://www.videogamesblogger.com/2010/03/29/ipod-touch-vs-i... - initial iPhone was extremely comparable to an expensive iPod.
/me hopes that the fine community of LineageOS provides at least security patches for Nexus-5 for the upcoming five years.
If companies want to sell devices they need new shit to sell. VR, AR is one possible avenue. Smart Home is another. But don’t expect me to just volunteer $1K for a slightly better version of what I already have.
Hopefully that innovation is the return of the headphone jack :P
I have reduced usage and removed all apps last year then started to leave it at home when going out since past Fall. This way it wasn't a total ice-bucket challenge. I haven't missed it for a moment yet. When I go out and wait for the bus or tram to arrive I look at other people, the clouds and my general environment. I am more calm again and it feels like everyone else glued to their screen is part of some matrix. They almost obsessively dig around their pockets quickly to find their phone as soon as they get on the bus in order to avoid eye-contact with everyone else at all cost. I remember how it was when I too did this it was like some kind of insecurity that my phone allowed me to escape. e.g. I pretend that I'm busy on my phone ... because there is a pretty girl on the other side and the last thing I want is to look at her ... if she'd notice me she would think I am a weirdo because I'm just sitting their without doing anything and even get the impression that I stare ... Or I get an uncomfortable vibe from somebody else on the bus and so quickly get my phone because the pretend-world in there feels just so much safer. It also shows the world that I do have a life and am not just a weirdo. Or does it?
I remember going out w/out a phone last year and I was in a different city (and country). Asking a passerby on the road was the only option and he actually said to me why you don't just check google maps yourself. I told him sorry my battery is flat which seemed the only correct response without looking like a total weirdo.
But these are outliers, in general I do just fine. The reason why I became militant about not having a phone was when I see my gf who is a hell of a lot younger than me and was pushed into using it by her own parents. They would freak out if she wasn't reachable for even a short time and so she always had one on her since the age of twelve. When I was 12 mobile phones didn't even exist and I owned my first phone when I was 22 (it was a Motorola brick phone and my employer gave it to me to stay in touch). I see a lot of the anxiety people complain about every day being rooted in phones and their capability to distract and steal our time (life's too short for this shit ... but then I'm just an old man shouting at the cloud).
It means a larger installed base for the delivery of software, services, and adjunct devices which otherwise wouldn’t be possible when competing against cheap android devices.
A lower TCO is a selling point. Analysts are just failing to understand the evolution of the business model.
I recall in the early days of PCs software drove(compelled?) PC hardware upgrades every 2 or so years.
Then hardware upgrades became unnecessary unless you were a hardcore gamer.
Wouldn’t the same hardware/software relationship apply with mobile phone hardware?
What’s the next compelling value proposition?
Will a next generation AI/ML Assistant compel a hardware upgrade in terms of an AI focused chipset or additional sensors for data collection?
Is there anything in the Chinese WeChat ecosystem that compels mobile hardware upgrades?
How else can human vanity in terms of mobile hardware/software be exploited?
Very true, I'd say a downgrade is the trend. I saw like 10+ people deciding to switch from "superphones" down to mid-range models, and even dumbphones for their new phones. People who had ultrabooks, often try Atom based notebooks and sufraces. The key deciding factor for such people, I think, is having a good screen and bearable ergonomics (no microscopic keyboards, or batteries.) The data I have access to tell that the "big screen, small CPU," is the category with the biggest year on year growth. Atom based 14 and 15 inchers are selling like hot cookies.
As a person working in the industry, I can say that's a very visible trend. People switch their devices more due to battery and physical wear than actual need for more features.
In that respect, things got very "Japanised" in respect that Japanese cellphone makers are often making new models every season with no real changes other than cosmetic.
Japan is also the only developed market where "dumbphones" ever saw few upwards trends in last 5 years.
They stopped subsidizing them.
For a while, most carriers (at least AT&T with iPhones) would include a phone with a two year contract as part of your monthly bill. But about 3 or 4 years ago, they stopped doing this. And so people had no incentive to renew every time they were eligible.
Everybody I’m close to stopped for this reason. Now they only renew now when they have to, or when there’s a really compelling reason to. And any more, both of these are becoming less and less of a need.
Why has nobody talked about this?
However, if the carrier companies still offered subsidized phones I’d be more than happy to upgrade for the subsidized price. It wasn’t until NEXT and all the similar “pay the full price over N months” plans came along that I stopped upgrading regularly.
Seems like the burden of not upgrading has fallen back on the smartphone manufacturer, no? If I’m paying full price I’m either going to buy less often or look for a cheaper option.
Repairing it would have cost be about $400, and second hand s8s go for around that rate. It simply didn't make sense to repair it and sell it, or even to repair it at all really.
I ended up purchasing a second hand Pixel XL (1st version) for $180. It has lasted me incredibly well, and I've had hardly any problems. The phone is durable, has a headphone jack, and a fantastic camera.
It seems that most phone hardware now has reached the point of being more than good enough. The only real bottle neck for many devices is software. My Samsung phones, with their bloated skins, always seemed to age quite quickly. When the software experience is finely tuned and bloat removed, then phones seem to last indefinitely.
There are no small new smartphones, there are no QWERTY phones, soon there will be no phones with headphone jacks...I'd love to have a QWERTY for business + small phone with nice camera and durable battery for travel combo.
The voice assistants are a flop, not nearly good enogh. I miss my headphone jack a little. I wish I could get a blackberry style physical keyboard.
As much as the iPhone vs Android debate continues to rage, they basically do the same things.
Which means, a lot of people are setting aside money that they would spend for their yearly phone upgrade, for the next seductive product. This could be a good opportunity for novel stuff.
Until I'm gonna a get a new model that is compact and has a headphone jack, fingerprint reader and SD card slot I'm not planning to ever change my device.
The whole market went crazy in completely opposite direction than what the consumers want.
Id buy new phone if did one of the followings...
A) had a battery that lasted a month.
B) had free unlimited data.
C) can 3d scan objects
I'll not buy it if it has
A) NSA 2.0 Alexa or ok Google always turned on
B) reliance on Bluetooth. I've concerns about radiation effects.
C) battery lasts one day
What do people actually get for getting something at 5x the price? Notchless design, maybe better camera, and can't really think of anything else.
Phones IMO are transitioning from a functional item to a status item (maybe similar to watches). At least that's the angle I'd be taking if I was a high end phone manufacturer...
My phone (LG V20) is one of the last made with an easily removable battery.