Why the price of technology is skyrocketing in Australia this year
AUSTRALIANS need to get used to paying hundreds of dollars more for smartphones, tablets, and laptops. SEE HOW MUCH EXTRA YOU PAY
THE price of personal technology is skyrocketing in Australia this year, with devices including laptops, tablets, smartphones, and smartwatches commanding hundreds of dollars more as the busy Christmas buying season approaches.
In several cases, price rises will see Aussie buyers forced to spend more than 45 per cent more this year.
And while advanced features and a falling Australian dollar were blamed for some of the mounting fees, technology experts say consumers should brace for high tech prices to keep claiming an even bigger chunk of “the household budget” in future, and warned them to be wary racking up large AfterPay debts.
After record-breaking price hikes for gadgets such as smartphones and tablets this year, News Corp analysed a range of products from top manufacturers Apple, Samsung, Google, Huawei, and Microsoft.
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The biggest price rise was recorded by Apple’s new iPad Pro, with the cost of its top model up by 51 per cent this year, though the price of its newest Apple Watch also jumped by 39 per cent.
Huawei recorded the biggest price rise for a smartphone, with its Mate 20 Pro commanding 45 per cent more than its predecessor, and Samsung’s Galaxy Note 9 went up in price by 20 per cent.
Google was the only company to record a lower price for a smartphone, with the cost of its Pixel 3 XL bucking the trend with a saving of three per cent.
The falling Aussie dollar, currently at 72c, raised the price of many devices, and Telsyte managing director Foad Fadaghi said growing storage capacities, new features, and the price of OLED screens contributed to the price jump.
But Mr Fadaghi said tech giants also recognised that they could lift prices and still see sales.
“We rely more and more on our smartphones,” he said. “In any market where reliance on a product is increasing, there’s scope for manufacturers to profit from that.”
Mr Fadaghi said the price hikes would hit Australian consumers particularly hard this year, as many were already investing in a growing range of digital subscription services.
“These price rises will be compounded because a lot of consumers are also paying for smartphone services, like cloud-based storage or Apple Music and YouTube Music,” he said.
“If you look at everything a consumer might pay for with a phone, it is becoming a substantial part of the household budget.”
The Retail Solution chief executive Roger Simpson said rising prices could see many consumers seek out new credit to afford new technology, with the “instant gratification” offered by services such as AfterPay and ZipPay appealing to many.
Buyers are given their products immediately after signing up to these services, even though they will be charged fees and interest if they miss agreed payments.
Telstra also recently launched an option for tech buyers to add accessories and products such as smartwatches and speakers to their telephone bill to pay off in instalments.
“The challenge is that it’s just more debt and there are a whole myriad of challenges around debt,” Mr Simpson said.
“It’s amazing what we will do to purchase the things we want. We’ll put off the basics to have luxuries.”
Mr Fadaghi said consumers should consider more than “just the top-end, premium model” when choosing new tech purchases this year, and should investigate whether their needs could be met by an older or mid-range device offered at a lower cost.
TOP TECH PRICE RISES IN AUSTRALIA THIS YEAR
APPLE
iPhone X: $1829
iPhone XS Max: $2369
Price rise: 29%
iPad Pro 12.9 (2nd gen): $1919
iPad Pro 12.9 (3rd gen): $2869
Price rise: 49%
iPad Pro 10.5: $1699
iPad Pro 11: $2569
Price rise: 51%
Watch 3: $919
Watch 4: $1279
Price rise: 39%
SAMSUNG
Galaxy Note 9: $1799
Galaxy Note 8: $1499
Price rise: 20%
Galaxy S9: $1349
Galaxy S8: $1199
Price rise: 12%
Galaxy S9+: $1499
Galaxy S8+: $1349
Price rise: 11%
Galaxy Watch: $649
Gear S3: $599
Price rise: 9%
Galaxy Tab S4: $1379
Galaxy Tab S3: $1099
Price rise: 25%
Pixel 3: $1349
Pixel 2: $1229
Price rise: 9%
Pixel 3 XL: $1499
Pixel 2 XL: $1549
Price fall: 3%
HUAWEI
Mate 20 Pro: $1599
Mate 10 Pro: $1099
Price rise: 45%
Mate 20: $1099
Mate 10: $899
Price rise: 22%
Nova 3i: $599
Nova 2i: $499
Price rise: 20%
MICROSOFT
Surface Pro 6: $3459
Surface Pro 5: $3999
Price fall: 15%
Surface Laptop 2: $3999
Surface Laptop: $3299
Price rise: 21%
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