Are you a firm believer that you get what you pay for? That if you pay top dollar you will get a better outcome?
If so, you are far from alone, as a new report has said people are becoming increasingly willing to pay premium prices for smartphones.
In fact, figures from market research specialist GfK have revealed that rising average sales prices have led to the value of the smartphone market going up by nine per cent in the last year alone.
The growing level of demand for smartphones has also helped to boost the sector’s value.
According to GfK, global smartphone demand hit 347 million between April and June 2017.
That’s four per cent up on the amount recorded a year earlier and makes it the strongest second quarter on record.
As Yotaro Noguchi, product lead in GfK’s trends and forecasting division, observed: “Consumers are willing to pay more for their smartphone as they seek a better user experience.”
Mr Noguchi believes that the market will only keep growing, even though it’s reached high penetration levels.
“Smartphone demand will continue to see year-on-year growth even in 2018, as innovation from smartphone vendors keeps replacement cycles from lengthening,” he said.
Arndt Polifke, global director of telecom research at GfK, added that while some markets may be saturated, the record demand in Q2 shows the desire to own a smartphone is a “worldwide phenomenon”.
He said manufacturers are making the most of all their creativity to ensure their latest devices are “irresistible” and as a result, increasing their average sales prices.
Western Europe is a good example of one part of the world that might be termed a saturated market.
In fact, figures from GfK show that demand for smartphones in this part of the world has fallen for the last three consecutive quarters.
The UK alone has seen a five per cent decline in sales year-on-year, while the drop in France has been even bigger at seven per cent.
But there’s one possible and very simple explanation for all this. The much-hyped Apple iPhone 8 is set to be launched before the end of the year and the latest addition to the Samsung Galaxy range is also about to be unveiled.
As a result, there’s a very good chance that people in western Europe are simply holding off on buying a new handset until these high-profile new products hit the market.
This is certainly what GfK is predicting, with the final full-year decline in sales for the region expected to come to a far less dramatic -0.4 per cent.
Our love affair with smartphones is a long way from being over, it seems!