Are Mobile Phones becoming too expensive?

In the past few years there have been some revolutionary changes in the cell phone technology. With the advent of Smartphone, there have been major upgrades in the functions and designs of the cell phones. As their uses are increasing, so are their power, size and speed. There are many more applications that are installed in modern cell phones, which are capable of doing many advanced tasks. However, this advancement in technology and its uses, has increased the demand of these Smartphone, which in turn has increased the price of most mobile contract deals on the market.

More Prices Due to Better Hardware

There have been a gradual increase in the features and prices of cell phones over there life span, but it has led many questioning the pricing of these gadgets and thinking that, are mobile phone becoming too expensive? The people who support this price rise would make an argument that as the phones are getting more powerful, the rise in their prices are understandable and mandatory. However, if you study the data closely you would find that the prices of handsets went down last year on average, despite increase in their features. Therefore, the logical conclusion is that phone companies have reduced the amount of discount that they were providing to its customers. Why this is happening? It is not to clear but it’s a trend that is costing us hundreds each year. 

Increase in Quality of Communication Network

The main reason that is given to the consumers for high pricing is that they are buying into a much faster and premium network, and companies have to spend huge amounts of money in setting-up and maintenance of these networks. However, this isn’t exactly true. For example, most networks have marketed 4G by claiming that customers are getting it for “no extra charge,” but it’s just a marketing gimmick to fool customers. 4G customers have paid $10-20 extra each month for 24 months of 4G access, plus an average of $100 extra for a 4G handset. This creep in price has never been explained by the networks, who are making the most money from this transitional stage.

Conclusion

High prices of cell phones can be justified in some cases, but when choosing 4G technology phones, you should look at the future expansion plans of the Cell Phone Company and their present coverage area. If coverage is slowed by the networks they can charge you premium’s for a service you cannot even use. If prices keep on rising a lot of people will be unable to get approved for a mobile contract or at least we will see a big divide between users when 4G finally arrives across the country. Phonecontractsbadcredit.co.uk has stated they have seen an above 50% refusal rate for new contracts when applying for a 4G contract. So if you are not in the top 50% of earners in the country this next wave of technology could be priced out of your reach.