What makes a phone expensive?

just looks at galaxy a70 and asus zenfone 6, a70 will be $649 and will have 6'7 oled (probably most expensive component of a phone and i like huge screens). the asus doesn't have price yet but has SD855 and 6'4 screen. the a70 seems way better bang for buck than s10+ which is only 6'4 oled and $1.5k at release. are the cpu/memory worth that much? obviously only comparing AU models not cheap chinese flagship greys with no gst and selling at a loss. sorry if this is off topic im phone noob.

Comments

  • Entry Level: (AU$150 + tax/shipping) USD $100 or lower

    SoC (Questionable efficiency, speed, radio performance, software polish, overall support, etc etc)
    Made by Exynos, Kirin, MediaTek, RockChip, AMLogic, Allwinner, VIA, etc etc
    28nm-12nm SoC using Cortex A53 - Cortex A55 chipset
    1GB - 3GB DDR3 RAM
    16GB - 32GB eMMC 5.0 storage
    480p - 540p LCD display
    USB 2.0, Mono loudspeaker, Regular Charging, No Water resistance, Glossy Plastic construction, Cheap front glass
    I would estimate the profit margins here are almost non-existent (<10% or $20 ?).

    Low-end: (AU$200 + tax/shipping) USD $100 - $150

    SoC QSD 439/450/625/626/630/632
    2GB - 4GB DDR3 RAM
    32GB - 64GB eMMC 5.0 storage
    720p LCD - IPS display
    USB 2.0, Mono loudspeaker, Regular Charging, No Water resistance, Plastic construction, Tempered front glass
    I would estimate the profit margins here are very slim (20% or $50 ?).

    Midrange: (AU$300 + tax/shipping) USD $200 - $250

    SoC QSD 636/670/660/665
    4GB - 6GB DDR4 RAM
    64GB - 128GB UFS 2.0 storage
    720p - 1080p IPS display
    USB 3.0, Mono loudspeaker+earpiece, Fast Charging, Water Splash resistance, Aluminium construction, Gorilla Glass front
    I would estimate the profit margins here are slim (30% or $100 ?).

    Upper-range: (AU$450 + tax/shipping) USD $300 - $400

    SoC QSD 675/710/712/730
    6GB - 8GB DDR4 RAM
    128GB - 256GB UFS 2.1 storage
    1080p IPS - OLED display
    USB 3.0, Mono loudspeaker+earpiece, Fast Charging, Water Dunk/IP65 resistance, Aluminium construction, Gorilla Glass front
    I would estimate the profit margins here are decent (50% or $200 ?).

    Flagship: (AU$700 + tax/shipping) USD $500 or higher

    SoC QSD 835/845/855
    8GB - 12GB DDR4X RAM
    256GB - 512GB UFS 3.0 storage
    1440p - 4K OLED display
    USB 3.1, Dual loudspeakers, Super Fast Charging, IP68 resistance, Kevlar/Titanium construction, Sapphire/Gorilla Glass front
    I would estimate the profit margins here are very high (100% or $400 ?).

    Unfortunately, to keep the upper management, stock market and investors happy what OEMs have done is to gradually increase the price of the flagship category and reduce expenses. One of the many ways they have reduced their expenses is by practically remover customer service, killing software support early, introducing planned obsolescence, using glass as cheap back housing, removing loudspeaker, removing headphone jack, removing microSD slot, removing FM radio, removing IrDa, downgrading usb ports, not doing IP certification etc etc. This probably saves them a decent -$100 in expenditure, combined with a price pull of +$300, and the overall difference becomes staggering at the mass scale (>10 Million units) annually. There's a lot of hidden things that are removed/downgraded by current phones with the Flagship Pricing, which are actually demonstrating Midrange Features. As an example, the OnePlus 6t is a good candidate as a Midrange Phone being in the Flagship Pricing, with poor justifications (marketing/spec bump), in contrast, to the LG G7 which has all the bells and whistles and is overall the better phone even though it doesn't have a big hype/marketing and feels less faster.

    *Tax/Shipping should roughly come to around 20% extra on top of the cost. So when our dollar tanks, these commodities feel pricier and when it bounces up they feel more affordable.

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