The price of flagship high-end devices at launch has been steadily increasing in Australia. For example, the new Galaxy S25 starts at $1,399 this year for a 256GB model, $50 more than what the 128GB Galaxy S23 launched at two years ago.
The Galaxy S25 Plus is $50 more expensive than the Galaxy S23 Plus at $1,699, and the Galaxy S25 Ultra got a $200 price hike over the S23 Ultra, so you’re now looking at a minimum of $2,149 for the S25 Ultra.
The same holds true for Apple whose iPhone 16 starts at $1,399 and iPhone 16 Pro starts from $1,799. Compare that to the current iPhone 15 prices which begins from $1,249 and iPhone 15 Pro which starts at $1,597.
Last year, with mobile shoppers becoming more price conscious, research firm Canalys showed that it wasn’t the latest iPhone 16 devices, but the older-gen iPhone 15 that was Apple’s top-selling smartphone.
Shortly, IDC Australia will reveal their local smartphone sales numbers, with Motorola tipped to have grown over 100% while Chinese brand Oppo has started to make a comeback with double digit growth.
Motorola have been consistently launching phones within the sub $1,200 price point which makes them strong contenders within the mid-range and even the budget phone market.
Several factors contribute to rising flagship costs. Updated chipsets, new screen technology, and advanced cameras have all pushed up prices.
Marketing and branding have also played a role in pushing up overall costs. Creating exclusivity and desirability, and influencing perceived value are necessary for many manufacturers to justify higher costs.
A stronger US dollar is also pushing up prices for the devices which are imported, with the Australian dollar recently hitting a five-year low against the USD.
System-on-a-chip (SoC) technology meanwhile has improved mid-range phones, making them more appealing.
SoCs integrate several components, such as the processor, GPU, and memory controller, onto a single chip. It reduces manufacturing costs and complexity, allowing manufacturers to offer efficient devices at lower prices. SoCs used in mid-range and budget devices have become increasingly sophisticated, narrowing the performance gap they have with flagships.
While brands are attempting to push their high-hand devices with the promise of class-leading AI platforms in them, most have not yet made a case for how this AI technology is indispensable to everyday use. Until the time that they are able to show how their cameras, chipsets or AI platforms are tangibly more superior to mid-range phones which costs anywhere between $600-$1200 less than the flagship devices, the mid-range phones will continue to gain favour among consumers.
