In 2021, the price of smartphones can finally be kept in check

Just as hard as in 2020 for just about everyone, there was a silver lining for smartphone fans: prices for really good phones fell. While there was an early rise due to premium 5G phones, it was budget devices, affordable flagships and ‘super’ mid-range ‘phones that determined the year, including the Pixel 4a, iPhone SE and Galaxy S20 FE. Smartphones under $ 700 were already hot, but they quickly became the stars. There are signs that will continue until 2021.

Of course, many of the smartphones that arrived in 2020 will be in the news for a while. However, there are also tips that phone manufacturers take last year’s lessons into account. From early indications, 2021 will be the year in which smartphone makers have to catch up with their previously rising prices. Whether it’s because of changing trends or the need, you may not have to pay $ 1,000 or more to have a powerful handset in your pocket.

Affordable smartphones will stay warm in 2021

Credit: Eric Zeman / Android Government

One of the most likely motivators is simple: if devices in a given category sell well, companies will manufacture more products like them.

There are definitely signs that at least some of these more affordable phones are very popular. Jeff Moore, Head of Wave7 Research noticed that by the end of 2020, the Galaxy S20 FE was one of the hottest phones at US airlines, displacing the Galaxy A51 and even the regular Galaxy S20 line. LG has credited “mass tiger” phones like the Velvet for better summer sales. The iPhone SE, meanwhile, was a rare bright spot at the darkest point in the early pandemic. Buyers have a clear preference for more affordable smartphones, whether it is due to pandemic pressure or simple economy. It would be foolish for brands to ignore it in 2021.

See also: What to expect from smartphones in 2021

You can even see early signs of this awareness. It’s not entirely surprising that Chinese phones like Xiaomi’s new Mi 11 will have very aggressive prices due to their home market, but it’s still a positive sign for the first Snapdragon 888 phone to be launched anywhere in the world. Maybe Qualcomm’s flagship silicone won’t make prices go up so high this time around. For example, according to Samsung, Galaxy S21 prices will drop by as much as $ 150 compared to the S20 series.

And if the history is an indication, certain phones could cause a ripple effect, leaving competitors feeling compelled to keep prices down. Like it or not, the fast-paced yet affordable iPhone 12 and iPhone 12 Mini are likely to influence prices and features in the industry. If they sell well (and probably do too), you can expect to see a wave of 2021 Android smartphones delivering a similar mix of the best performance with a price tag of less than $ 800.

The pandemic may not leave much to be desired

There is also a simple (if harsh) reality at work: the COVID-19 pandemic is likely to dampen enthusiasm for expensive smartphones, even if vaccines help restore a semblance of normality again in 2021.

Although there are signs of recovery, many people are still out of work or have had to accept lasting wage cuts. This is likely to limit spending power. Companies will have to take this into account if they expect to sell smartphones in 2021. It’s hard to justify a premium device (or any device at all) if you may have to stretch your budget further than you ever expected. The success of budget phones at the onset of the pandemic probably reflects the cost-conscious mindset.

Related: Did smartphones become much more expensive in 2020? Let’s look at the numbers

People may not be willing to spend, even if they still have a good income. If you work from home and otherwise stay as long as possible, why should you buy a premium 5G phone that will not reach its potential? A $ 2,000 Galaxy Z Fold 2 is hard to sell if you just use it to check your social feeds on the couch. More affordable, focused devices will make more sense until it’s safe again to commute to the office or take photos during a concert.

Phones with a cheaper price are more than good enough

Smartphone manufacturers may not quickly acknowledge this in public, but they may have to accept that mid-range phones will be good enough for many people by 2021. You no longer have to buy the most expensive model to feel like you are getting a powerful device.

The above Galaxy S20 FE – Android Authority2020’s smartphone of the year, no less – is perhaps the most important example. While it will not surpass the best 2021 smartphones, it remains a fast handset that takes high quality photos and is otherwise cheaper at more expensive alternatives. Why pay more for a regular S20, or even the S21, when the S20 FE checks the basics? The Pixel 5 is another strong example. Google followed a slightly different approach with its relatively powerless super-mid ranger, but still managed to plug in practical premium features such as wireless charging and water resistance, while maintaining an affordable price.

That is not to say that you are wrong by coveting the latest and greatest devices with Snapdragon 888 chips and powerful cameras. They will still be great for games and multitasking. And yes, the ultimate end to the pandemic should make it easier to justify luxury phones again. For a growing number of people, however, there is very little reason to buy more than a small phone – and the sellers may find it difficult to reason otherwise.