Europe constitutes a particular market in the mobile telephony sector. It has always been said that it is a country in which the price is positioned as one of the most important parameters when purchasing a smartphone. Furthermore, It is the gateway to Europe for Chinese brands who wanted to enter this continent, the competition was therefore much greater than in other countries.
Despite, Phone prices have continued to rise over the past year, partly because of inflation, partly because of the global geopolitical situation. The fact is that the vast majority of cell phones, all ranges combined, are more expensive than they were a year or two ago. In some cases, the increase is noticeable. There are exceptions, of course.
All this did The average price of phones has increased significantly recently, even in Europe, a country so sensitive to acquisition costs. According to the latest reports, the average price of smartphones in Europe is not less than 500 dollars. On average.
More upscale
This figure shows that, even if there are people who continue to buy models for 200 or 300 dollars, More and more users are opting for more expensive devices
A key point is the increase in installment purchases, something that brands like Samsung have managed to do very well, both alone on their website and through associations with certain banking entities. Indeed, among young people, it is no longer uncommon to finance the purchase of a smartphone, as it is not uncommon to do with other products, such as televisions or consoles.
The collateral effect is a decrease in total mobile sales in Europe, but this mainly affects certain brands, while others are experiencing renewed interest thanks to their good commercial strategy. Companies like Apple or Samsung are doubling down and others like Xiaomi are focusing directly on the high end, leaving the entry and a half range to its Redmi sub-brand. These types of moves demonstrate how important it is for companies to focus on higher value products.
The era of folding
Another good example is foldable cell phones. In 2023, many companies have launched to offer competing proposals with what was until now the queen of the market by default, Samsung. The Korean firm presented new proposals, with prices similar to those we had already seen, high-end prices.
Other companies, like HONOR, OPPO or Motorola have also entered this market because they know it’s a market where the profit margin is higher
Higher high-end sales
But the increase in sales in 2023 does not come only from folding products, far from it. Brands like HONOR saw sales of its flagship increasethe HONOR Magic5 Pro, 200% compared to the Magic4 Pro. Tripling the sales of one of the most expensive phones in its catalog from one year to the next is not trivial, and shows that HONOR also wants to fight in this category, as with Huawei, moving away from the image of a young and accessible company that she had when she arrived in Europe.
Motorola is another company that has seen its sales of expensive mobile phones increase., which sold more folding cars than last year, these models being those with the highest average price per family. The Motorola Edge 40 Neo, the company’s latest premium launch, is the smartphone in this family with the highest sales volume in Europe.
Sales of Samsung in the premium segment has also grown. And this is in addition to the increases already seen in previous years. The company has chosen to be conservative, but with extremely complete products, such as the Samsung Galaxy S23 Ultra, one of the best phones on the market and, for many, the one with the best camera.
Fewer sales, more expensive
Considering the decline in sales in the global market, companies are trying to make more money per device. This is a move very similar to that of automakers, who have gone from wanting to sell as much volume as possible to limiting their sales but raising prices. This means that by selling fewer cars, they make more money.
[Esta es la verdadera razón por la que cada vez hay más móviles caros y de gama alta]
In the smartphone sector, competition is much stronger, new businesses are born even in times when things are not easy. Nothing is a good example, and so is the jump his mobile made. The London company has gone from a good mid-range mobile to a good high-end mobile, without however entering the premium range. It wouldn’t be strange if in 2024 we saw another leap forward, with better features, more innovation and, obviously, a higher price.
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