2021 could be the year that smartphone prices will finally be controlled

As difficult as 2020 was for almost everyone, there was a silver lining for smartphone fans: the prices of genuinely good phones plummeted. Although there was an initial peak due to premium 5G phones, it was the budget devices, affordable flagships and “super mid-range” phones that defined the year, including the Pixel 4a, iPhone SE and Galaxy S20 FE. Smartphones under $ 700 were already in fashion, but they quickly became the stars. There are signs that it will continue until 2021.

Many of the smartphones that arrived in 2020 will still be current for a while, of course. However, there is also evidence that phone manufacturers are taking lessons from last year into account. From the first indications, 2021 will be the year that smartphone manufacturers will learn to control their rising prices. Whether due to changes in trends or absolute necessity, you may not need to pay $ 1,000 or more to have a powerful device in your pocket.

Affordable smartphones will remain in fashion in 2021

Credit: Eric Zeman / Android Authority

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

There are certainly signs that at least some of these more affordable phones are very popular. Jeff Moore, research director at Wave7 noticed that the Galaxy S20 FE was one of the best-selling phones on U.S. carriers in late 2020, replacing the Galaxy A51 and even the Galaxy S20 regular line. LG has given credit to “mass level” phones, like Velvet, for the improvement in summer sales. The iPhone SE, in turn, was a rare bright spot at the darkest point in the beginning of the pandemic. Buyers have a clear preference for more affordable smartphones, whether due to pressure related to the pandemic or simple savings. It would be foolish for brands to ignore this in 2021.

See too: What to expect from smartphones in 2021

You can even see some of the first signs of that awareness. It’s not entirely surprising that Chinese phones like Xiaomi’s new Mi 11 have very aggressive prices compared to their home market, but that is still a positive sign for the first Snapdragon 888 phone to be launched anywhere in the world. Perhaps Qualcomm’s silicon flagship won’t drive prices up this high. Case in point, there are rumors that Samsung is slashing Galaxy S21 prices by up to $ 150 compared to the S20 range.

And if history is any indication, certain phones can create a ripple effect, making rivals feel forced to keep prices low. Like it or not, the fast and even more affordable iPhone 12 and iPhone 12 Mini influence prices and features across the industry. If they’re selling well (and they probably are), you can expect to see a wave of 2,021 Android smartphones that offer a similar combination of world-class performance priced below $ 800.

The pandemic may not leave much choice

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

Although there are signs of recovery, many people are still out of jobs or have had to accept lasting pay cuts. This limits purchasing power. Companies will have to take this into account if they expect to sell smartphones in 2021. It is difficult to justify a premium device (or any device) when you may have to stretch your budget more than you might think. The success of cheap phones at the start of the pandemic probably reflects this cost-conscious mindset.

Related: Did smartphones get 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’re working from home and staying at home as much as possible, why buy a premium 5G-enabled phone that won’t reach its potential? A $ 2,000 Galaxy Z Fold 2 is hard to sell when you will only use it to check your social feeds on the couch. Focused and cheaper devices will make more sense until it is safe to go to the office or take pictures at a concert once again.

Cheaper phones are more than good

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

The already mentioned Galaxy S20 FE – Android Authoritythe smartphone of the year in 2020, no less – it can be an example par excellence. Although it does not surpass the latest generation 2021 smartphones, it remains a fast and feature-rich device that takes quality photos and does well compared to more expensive alternatives. Why pay more for a normal S20, or even for 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 weak super mid-ranger, but still managed to stick in practical premium features like wireless charging and water resistance, while maintaining an affordable price.

This is not to say that you are wrong to covet the best and latest devices with Snapdragon 888 chips and powerful cameras. They will still be awesome for gaming and multitasking. And yes, the eventual end of the pandemic should make it easier to justify the latest generation phones. For an increasing number of people, however, there is very little reason to buy more than a modestly priced phone – and suppliers may find it difficult to argue otherwise.