Why are mobile phone prices dropping so fast? There are three reasons

If you pay attention to the dynamics of the mobile phone market, you may find that the frequency of mobile phone updates is getting faster and faster, and the price of mobile phones is getting higher and higher, but the price reduction is also coming faster and faster. Is this the natural law of the market? The answer is yes. This is both the natural law of the market and the result of the continuous development of mobile phone technology. The price of mobile phones is getting faster and faster, and the price reduction is getting bigger and bigger. There are only three reasons.

The speed of new machine iteration is accelerating, and the price of old machines is reduced to make room for new machines in the market

Whenever a new model is released, the old models will see a wave of price cuts to make room for the new models. Digital products are consumables, and the longer they are released, the lower their prices will be. This is an indisputable fact. If you have an old mobile phone that is not being used, it is better to recycle it in the second-hand market instead of letting it depreciate and age.

Competition among mobile phone manufacturers has accumulated, and a price war is inevitable

As the number of mobile phone manufacturers increases, they naturally have to make concessions in order to compete for market share. Moreover, the mobile phones launched by each manufacturer are almost the same in terms of basic functions. When the configuration and performance are comparable, it depends on whether the price can attract consumers. Therefore, a "price war" is inevitable.

The mobile phone market is saturated, and there will be no sales without price cuts

Looking back at the new mobile phones released in 2021, the number of new models released by just one manufacturer is too many to count with two hands. But the market space is so large and there are so many consumers. What should we do with so many unsalable mobile phones? By reducing prices, mobile phones can improve their cost-effectiveness and stimulate consumption. Create a positive market environment and encourage consumers to buy new phones.

The market will not give any product time to hold a closing ceremony. New phones have either already arrived or are on the way. The glorious highlight moment of old phones is only for a short time. If they don’t reduce their prices to make room for the market, I’m afraid there will be no place for them in the market.