Samson started it with the note 8lg
quickly joined with the v30
of course Apple took it to a whole new
level with the iPhone 10 and now there's
rumors that even Google will join with
their pix alignment as well I'm talking
about this new trend of ultra premium
flagships of course but what are they
and why are they so damn expensive I'm
Martin from toccata doing a guest
episode for Android authority and let's
find out so what is an ultra premium
flagship I mean just half a year ago we
already thought that flagships were you
know premium like top-of-the-line it
doesn't get any better premium but
apparently we were wrong Apple Samsung
and LG have all chosen a dual flagship
strategy one flagship for the normal
mortals and another ultra premium one
for the more enthusiastic or simply more
wealthy ones and people have been
talking about gradually rising prices in
their flagship smartphone market since
forever but ultra premium flagships
represent a whole new trend I think not
only was the jump in prices much larger
than in previous years I mean these
phones went up from 6 to 800 dollars all
the way up to a thousand now but device
makers also seem to keep their regular
reflections around to signaling that the
regular and the ultra premium flagships
were aimed at different types of
consumers and should have different
value propositions so what is going on
here in one word
luxury and before you go down and start
throwing your Rotten Tomatoes at me I
mean at your screen because it's too
obvious let me unpack this term first
this handbag from Louie Vuitton costs
nine hundred and ninety five euros here
in Germany in other words it is priced
exactly like an ultra premium flagship
did that shock you probably not given
that it is one of the most popular
fashion accessories ever made but now we
have all accepted that luxury bags just
cost a ton of money but if a bag
costing a thousand euros didn't shock
you at all then maybe neither should an
iPhone or a galaxy see this back
perfectly captures what luxury is about
it's a piece of leather with a few
zippers on it that holds your wallet
your phone and a few other items it
doesn't have any functional benefit over
a $20 back ok maybe the quality of the
leather
a little better that design is a little
nicer where it wouldn't go out of
fashion like a regular bag would but to
anyone comparing these two bags on a
functional level the louisvil tone seems
like a terrible deal and yet millions of
people buy it features functionality and
performance are what most tech
enthusiasts including me think make a
device valuable these objective metrics
make comparing devices quite
straightforward but they are not the
only way to assess the value of a phone
one plus adds value to their phones by
having a thriving online community fair
phone adds value by having really good
environmental policies and by creating a
more sustainable phone nokia adds value
by playing with lost algin and by giving
europeans like me a small glimpse of
hope of a European company maybe
regaining at least some little role in
the consumer electronics of space people
are willing to pay for these extras just
like they're willing to pay for features
and technology that these things also
provide value is the key to
understanding ultra premium flagship
prices the less consumers worry about
the basics the more companies can focus
on these extras and when people can stop
caring about the fundamentals completely
the focus shifts nearly entirely on the
extras this is perfectly illustrated by
our Louis Vuitton bag functionality here
is basically not a concern at all banks
are functionally close to identical
because of this consumers can switch
their picki feature focused brains off
which in turn leaves space for their
aspirational social or emotional brain
to make decisions people who choose this
1,000 euro bag don't do it because they
excessively compare features between it
and other bags or watch in-depth reviews
instead they buy it for whatever is
layered on top of the functionality
maybe they value that Louis Vuitton has
a long history of excellent that they
have my stores or my staff or maybe they
just like letting others know that they
can afford a 1000 euro handbag so how
does this apply to phones well just a
few years ago switching that picky and
feature focused the brain of yours off
could have led to you ending up with a
genuinely bad phone but as the
smartphone market has matured that is
becoming increasing
unlikely phones now look really similar
and they also have very similar
functionality in real-world performance
years of fierce competition have made
sure that they are basically no more bad
phones on the market sure we enthusiasts
might net big but the average consumer
that just wants to scroll through social
media feeds and chat with friends all
modern phones above a certain price
range will work admirably well if you
think about it phones in this regard are
becoming more and more like bags and as
people have to worry less and less about
whether a phone will be able to perform
its basic tasks well enough they will
start carrying more and more about
whatever is layered on top of that core
feature set so companies with a little
extra could benefit from this just think
about their phone their concept is to
use sustainably sourced materials and
sustainable processes to build a phone
that isn't terrible for the environment
a phone that is repairable and so on
this of course makes their phones much
more expensive than comparable expect
mainstream devices to end up with a
phone that isn't prohibitively expensive
fair phone has to use mid to low end
specs four years ago when they launched
the fair phone one mid to low end specs
meant terrible performance two years ago
when they launched a fair phone - it
meant acceptable performance if they
were to launch the fair phone three with
the same strategy today or sometime in
the future performance would probably be
just fine mid-range specs today are
great and low-end specs are fine too
because of this many people who were
interested in the mission of fair phone
but were put off by having a really
subpar experience before could become
potential customers as the worries about
the specs disappeared the added value of
environmental friendliness becomes more
and more attractive now I don't know how
many people actually care about the
environment enough to choose a phone
purely based on this concern but this
trend is pretty unmistakable which
finally brings us to our ultra premium
flashers while features might still be
somewhat of a concern for low to
mid-range phones they are certainly not
an issue on the premium side of things
anymore it is close to impossible to
find a flagship phone that doesn't have
a great camera a great screen and enough
processing power to handle anything the
average consumer wants to do with ease
unless you have a very specific need for
say an aspen or some other niche feature
the decision you make when buying a
flagship mostly comes down to personal
preference and the extra stuff these
companies are carefully adding on top of
their devices they all have their own
special blend of stuff of course like
emphasizing the fact that they are an
anniversary edition for example but one
aspect that they all seems to push quite
hard is simply branding and through it
luxury especially Apple and Samsung have
built incredibly strong and premium
brands over time and they are leveraging
them hard they want you to think that
owning a one thousand dollar iPhone 10
where a note eight is a fashion
statement the same way that owning a one
thousand dollar Louis Vuitton bag would
be sure phones don't last as long as
fancy bags but they are with us 24 hours
a day so they are great at making a
statement they are increasingly not just
tools but objects of desire and prestige
now I'm not saying that ultra premium
flex shirts aren't technically better
than some cheaper phones or that they
aren't more expensive to make but most
of the increased price can be explained
by the fact that they have become
objects of desire and prestige so what
does this mean for the future of phones
I think we'll go from the industry
simply focusing on building the most
functional phone possible to having a
much larger variety of value
propositions price conscious consumers
will of course have an endless sea of
well priced options to choose from
there always be companies catering to
that audience and they'll have an easier
time than ever because making a cheap
smartphone that doesn't suck is easier
than ever at the same time I expect an
explosion of phones that focus on the
extras phones that are good for the
environment firms that care about your
privacy forms that make you feel
luxurious you name it the smartphone
industry will become a little more like
that of backs or clothes in general
where you can buy a t-shirt for five
dollars or another functionally similar
one for 500 so I'd like to know what you
think about this topic and also whether
you'd like to see similar types of
content on Android authority from me
again let us know in the comment section
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