Why budget phones are disappearing just when they are needed most
Inflation has thinned consumers’ wallets, yet budget and midrange smartphones are losing ground just when buyers need affordable options most. Soaring component costs, particularly for memory chips, are making it harder for manufacturers to sustain a low-margin, high-volume business model. As manufacturers focus on expanding their premium foldable phone lineups, consumers are increasingly turning…
Budget and midrange smartphones are vanishing in a market that could use them more than ever. Inflation has squeezed consumers' finances, and component costs have risen sharply, especially for memory chips. This makes it tough for phone makers to keep low-margin, high-volume production running. Manufacturers are shifting their focus to premium foldable phones, while many consumers are opting for repairs and secondhand devices instead.
Apple's entry-level iPhone 17e, launched in March, has seen its price jump by 16.1 percent, from 990,000 won ($726) to 1.15 million won. This follows the company's launch of the new iPhone 18 series at significantly higher prices due to "chipflation" caused by global chip shortages. Samsung Electronics has also increased prices for its entry-level Galaxy A series. The Galaxy A37, introduced in Korea in June, now costs 598,400 won, a 19.8 percent increase from its launch price.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Why budget phones are disappearing just when they are needed most koreatimes.co.kr
