Apple's cheapest iPhone from 2018 was the most popular smartphone in the world this year, and it's further evidence that people are fed up with the high prices of new phones

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The rising costs of smartphones

The rising costs of smartphones

The fact that so many midrange devices ranked among the best-selling smartphones in the world provides further evidence that many people aren't willing to pay nearly $1,000 for a new smartphone — even though that price range has become the norm. Samsung's Galaxy S10 starts at $900, for instance, while the iPhone 11 Pro begins at $1,000. Google's Pixel 4 starts at $800, while LG's G8 ThinQ is priced at $850.

Counterpoint Research's report isn't the first indication that consumers are shying away from more expensive devices. A report from NPD Group published in early December found that less than 10% of people in the United States are spending more than $1,000 on a new mobile device.

Paying $1,000 or close to it for a new smartphone may be typical in today's market, but smartphones weren't always so expensive. The iPhone 7, which launched in 2016, started at $650 if you opted for the standard model and $770 if you chose the larger version with two cameras. But as smartphones gained more advanced features like edge-to-edge screens and facial recognition, prices began to increase.

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A new crop of cheaper smartphone

A new crop of cheaper smartphone

Over the last year, however, large tech firms like Apple, Samsung, and Google have also started to release less-expensive versions of their flagship smartphones alongside their new premium models.

Apple launched the iPhone XR last year and the iPhone 11 in 2019, which it positioned as being its flagship offering for this year. Google released the $400 Pixel 3a in May, which inherited several features from the pricier Pixel 3, and Samsung debuted the cheaper $750 Galaxy S10e alongside the Galaxy S10 in February.

Such launches have likely been an effort to motivate consumers to upgrade as global smartphone shipments have dropped while customers hang onto their devices for longer periods of time. The popularity of devices like the iPhone XR is yet another sign that not everyone is willing to shell out upwards of $1,000 for top-of-the-line smartphones.

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