Here’s Why Flagships In 2017 May Be Costlier Than Ever Before
We have recently rumored that as per a leak the Samsung Galaxy S8 could value as high as Rs. 63,500 and S8 Plus may start at Rs. 70,350. To put in perspective, Galaxy S7 launched in India for Rs. 48,900 and Galaxy S7 Edge for Rs 56,900. If the rumors turn out to be true, then it will be a giant leap in pricing.
What is the probability of radical price shift?
Battle to increase screen-to-body ratio. Xiaomi took the smartphone world by storm by launching Mi Mix with a whopping 91.3 percent screen-to-body ratio. The phone is an epitome of the designs found on the smartphones. It set a benchmark, and all other companies are going to join the bandwagon to achieve it. However, this engineering marvel is not only a daunting task to accomplish but also increases the overall cost of production. The cost of Mi Mix substantiates our claim; it is the costliest phone Xiaomi ever sold. It is 50% expensive than Xiaomi Mi5s, which sports similar hardware. Therefore, it is no brainer that the race to increase the screen-to-body ratio is going to impact the value of flagships in 2017.
Increase within the value of hardware
Qualcomm, Samsung, MediaTek was use 10nm FinFet method technology to manufacture their next-generation processors which will be powering 2017 flagships. Chips at the 10nm size have a considerably smaller footprint than their 14nm predecessors, that goes to release some space in order that OEMs will either incorporate larger batteries or opt for slimmer phones. However, 10nm FinFet technology doesn’t come back cheaper. it’s comparatively complicated and desires significant investment to upgrade the prevailing foundries. I don’t have precise information regarding the price of the processor, however I believe the new technology could impact the price of the assembly of processors, which can eventually hike the price of the phones.
Investments on AI and VR
AI and VR the current buzzwords within the technical business. Chinese OEMs like Xiaomi, OnePlus, and LeEco was launching phones that perform additional or less the same as the flagships from tier one makers like Samsung, Huawei, Sony, Apple, HTC, and LG. it’s urging tier one OEMs to speculate in lump sums to pave manner for next generation technologies like AI, VR, 4K screens, twin cameras, etc. so they’ll differentiate their phones to convert the consumers to stake them. To quote a example, Samsung is about to produce its own personal assistant. However, within the method OEMs was hurt cash, which can persuade them to extend the costs.
The innovation within the smartphone business has reached the saturation. Any leap forward can want hefty investments in R&D. Therefore, there’s a bright probability for a minimum of a progressive raise within the value of the flagships. If you’re about to purchase a flagship from tier one makers in 2017, you higher brace yourselves to take a position additional.