Sunday, December 1, 2013

Is The iPhone 5S Reaching The Maximum Price For A Smartphone?

As the smartphone market continues to receive an increase in offerings, many analysts have begun to speculate about the long-term fate of Apple’s flagship mobile device, the pioneering iPhone. With costs of $199, $299, and $399 for various iPhone 5s models (not including the hefty two- year contract required by most wireless carriers), consumers are increasingly forced to compare Apple’s line to the considerably more affordable competition, with a variety of models that come with the coveted $99 price tag. As smartphones become more common throughout the world, there are several corresponding trends that may ultimately weigh down the iPhone’s success:

High Turnover Rates Can Limit The Appeal Of Expensive Smartphones

We’re currently in an age of rapid technological growth that mirrors the home-PC explosion of the early 90’s. With mobile devices getting outperformed by newer models on an annual basis, there may soon come a point when the premium expense of the iPhone becomes too unattractive to the majority of consumers.

Tablets Are Getting Cheaper And More Powerful, And Come With Wireless Capabilities

The days are gone when tablets were nothing but luxury gadgets that were only usable within a Wi-Fi network. Their size, power, and wireless carrier plans now make them attractive alternatives to smartphones, a fact that may start impacting the relatively pricey iPhone.

The Abundance Of Cloud Storage Is Making Large Storage Drive Devices Obsolete

With the main difference between the $199 and $299 iPhone 5s being the storage space (16 GB and 32 GB respectively), Apple seems to still be banking heavily on a certain percentage of consumers needing extra room for digital media storage. However, the abundance of cloud storage and streaming media apps have rapidly reduced the need for large storage drives—particularly for mobile devices—making the higher GB iPhones a much tougher sell in today’s world.

Apple’s Combination Of Premium Devices And Annual Releases May Finally Be Working Against The iPhone

Providing a high standard for premium devices while simultaneously pushing technology forward is a tall order for any company, even for a powerhouse like Apple. With Nokia, Samsung, and several other companies making great inroads into the smartphone market with entry-level products, Apple may unfortunately start undermining itself by insisting on releasing new iPhone models as frequently as its cheaper competition.

With the overall mobile market clearly favoring newness over premium capabilities and durability—at least for now—the iPhone 5S may have found the price ceiling for modern smartphones, with $299-$399 tags becomingly increasingly scarce, especially with multi-year contracts with wireless carriers.

Author bio:

John is a blogger who recently switched wireless carriers, and is greatly enjoying the freedom of a month-to-month smartphone contract. He writes for gadget insurer Protect Your Bubble, who can help protect your smartphone from spills, drops, theft, and much more.