As hard as 2020 was for almost everyone, there was a silver lining for smartphone fans: The prices for really good phones fell. Although there was an early increase due to Premium 5G phones, budget devices, affordable flagships, and "super-midrange" phones dominated the year, including the Pixel 4a, iPhone SE, and Galaxy S20 FE. Smartphones under $ 700 were already hot but quickly became stars. There are signs that will continue through 2021.
Many of the smartphones that arrived in 2020 will of course be up to date for a while. However, there is also evidence that phone manufacturers are considering lessons from last year. According to initial indications, 2021 will be the year in which smartphone manufacturers learn to contain their previously rising prices. Whether trends change or there is a need, you may not have to pay $ 1,000 or more to have a high performing handset in your pocket.
Affordable smartphones will stay hot in 2021
One of the most likely motivators is a simple one: if devices sell well in a certain category, companies will make more products like this.
There is certainly evidence that at least some of these cheaper phones are very popular. Jeff Moore, Head of Research at Wave7 written down that the Galaxy S20 FE was one of the best-selling phones among US providers by the end of 2020, displacing the Galaxy A51 and even the regular Galaxy S20 range. LG credits "mass tier" phones like the Velvet for improved summer sales. The iPhone SE, meanwhile, was a rare ray of hope at the grimmest point of the early pandemic. Buyers clearly prefer cheaper smartphones, be it due to pandemic pressure or simply thrift. It would be foolish for brands to ignore this in 2021.
See also: What to expect from smartphones in 2021
You may even see some early signs of this awareness. It's not entirely surprising that Chinese phones like Xiaomi's new Mi 11 will have very aggressive prices given their home market, but that's still a positive sign for the first Snapdragon 888 phone to be launched worldwide. Perhaps Qualcomm's flagship silicon won't let prices soar this time around. It is rumored that Samsung is slashing prices for the Galaxy S21 from the S20 range by up to $ 150.
And if history is any clue, certain phones can create a ripple effect that can make rivals feel compelled to keep prices down. Like it or not, the fast, yet cheaper, iPhone 12 and iPhone 12 Mini will affect prices and features across the industry. If they sell well (and likely), expect a wave of 2021 Android smartphones offering a similar mix of top-notch performance with a price tag below $ 800.
The pandemic may not leave much choice
There's also a simple (if harsh) reality at work: the COVID-19 pandemic is likely to further dampen craze for expensive smartphones, even if vaccines help restore a semblance of normalcy in 2021.
Although there are signs of recovery, many people are still unemployed or have suffered permanent wage cuts. That has to limit purchasing power. Businesses need to take this into account when planning to sell smartphones in 2021. It's hard to justify a premium device (or any device at all) when you may have to stretch your budget further than you ever expected. The success of budget phones at the start of the pandemic likely reflects this cost-conscious mindset.
Connected: Did smartphones get much more expensive in 2020? Let's look at the numbers
People may not be willing to spend money even if they still have a good income. If you work from home and otherwise stay as much as possible, why buy a premium 5G-enabled phone that is not reaching its potential? A $ 2,000 Galaxy Z Fold 2 is a tough sell if you're just using it to check out your social feeds on the couch. Cheaper, focused devices make more sense until it is safe to commute to the office or take photos at a concert.
Cheaper phones are more than good enough
Smartphone makers may not be quick to publicly acknowledge this, but they must accept that mid-range phones will be good enough for a lot of people in 2021. You no longer have to buy the most expensive model to feel like you are getting a powerful device.
The Galaxy S20 FE mentioned above - Android Authority The smartphone of 2020, no less - could be the epitome. While it won't outperform high-end smartphones in 2021, it remains a fast, full-featured handset that takes high-quality photos and otherwise holds its own against more expensive alternatives. Why pay more for a regular S20 or even the S21 when the S20 FE gets the basics right? The Pixel 5 is another strong example. Google took a slightly different approach with its relatively underperforming Super-Mid-Ranger, but was able to take advantage of handy premium features like wireless charging and water resistance while maintaining an affordable price.
That doesn't mean you are wrong if you want the latest and greatest gadgets with Snapdragon 888 chips and powerful cameras. You will still be amazing for gaming and multitasking. And yes, the eventual end of the pandemic should make it easier to justify high-end phones once again. However, for a growing number of people, there is little reason to buy more than one phone at modest prices - and vendors may find it difficult to argue otherwise.
