Why budget phones are disappearing just when they are needed most

Inflation has eroded consumers' finances, yet budget and midrange smartphones are being pushed aside precisely when affordable choices are most required. The escalating costs of components, especially memory chips, are making it challenging for manufacturers to maintain a low-margin, high-volume approach. As companies prioritize the growth of their premium foldable phone offerings, customers are gravitating towards repairs and used devices instead.

Apple's latest entry-level iPhone 17e, introduced in March, has seen a 16.1% price hike on Thursday. The cost of the device, originally priced at 990,000 won ($726), is now 1.15 million won. This pricing move coincides with the launch of Apple's new iPhone 18 series, which comes with significantly higher price tags. The company attributes this pricing strategy to "chipflation," a term used to describe the impact of global chip shortages on component costs.

Samsung Electronics has also increased prices for its budget Galaxy A series. The Galaxy A37, which debuted in South Korea in June, now costs 598,400 won, marking a 19.8% increase from its original price. These price adjustments come as manufacturers grapple with the rising expense of memory chips, which are crucial components in many smartphones.

The trend of focusing on premium devices while leaving budget options in the background is causing significant distress among consumers who need affordable smartphone alternatives.