Mobile Prices Jump 490% Over 20 Years—May Hit £1,800 by 2025

Phones Have Gone Rocket‑Priced Since 2000

Remember the good‑old days when a mobile was a fancy novelty? Well, the price tag for today’s flagship gadgets has shot up by a whopping 490% since the turn of the millennium. The new moniker for a top‑tier phone isn’t “handy” anymore – it’s “splurge‑ware”. And, according to Uswitch.com, a fancy phone now eats up more than half of the average UK monthly wage!

Samsung’s Next‑Gen Note 20 Ultra

Launch date: 5 August – and they’re calling it the “future of fashion” (or not).
Estimated cost: £1,300. That’s a solid chunk of pocket‑change you’d rather spend on a latte.
Peaking the competition: The Apple iPhone 11 Pro Max and a new old‑school iPhone 11 line will be among the most expensive phones ever, all set to stare down the same price wall.

What Happens if the Trend Sticks?

Uswitch suggests that within the next five years we might see a $1,800 phone on the horizon – a figure that doubles every decade. If your phone keeps doubling in price and you’re buying one every ten years, your smartphone’s reward ladder will keep climbing.

Phone Prices Then vs. Now

Back in 2000, a “standard” phone cost roughly £72.50 – an amount that could only make calls, send texts, and beat Snake on a screen that existed in the 90s.

Fast forward to today:

Average smartphone: £355
That’s about 14% of the average monthly salary across the UK.
Phones now let you browse the web, shoot photos and videos, binge Netflix, and download a rainbow of apps that sometimes run faster than a drunk hedgehog.

It’s Not All Cool Kids – There’s a “Dumb” Side

Look, you can buy an Alcatel 10.66 for just £5 (yep – five). Or indulge in an Apple iPhone 11 Pro Max for £1,149 – not terrifying now, but the price is a mouthful. If you’re lazy about upgrades, little iPhone SE 2020 is only £419, so you can stay trendy without blowing your bank account to the sky.

When Phones Used To Be Luxury

Phones were only for the rich in the early 90s. The first Motorola portable phone, the 3200, sold for £762 — an equivalent of about £1,651 today. Over time, mass production made the devices smaller, more affordable. But after 2000, prices took to the up again, not because of inflation but because people decided they wanted a bigger screen every time.

Phones That Last More

Modern customers are sticking to their phones longer. On average, people hold onto their device for 2 years and 3.7 months now (compared to 1 year 11.4 months back in 2016). That means you can keep your phone for longer than a hamster’s life span. Funny, is it? Enjoy the FOMO, enjoy the economy.

Graph: Cost of mobile phones from 1992 to 2020

Source: Uswitch.com. All prices corrected for inflation.
Uswitch is offering tips on how to choose the right phone for you in its guide to buying your first smartphone. The best place to start is deciding whether you want an Android or Apple iOS device. Next, work out what features are most important to you, whether that is a top-end camera, a large screen, or long battery life.
Ru Bhikha, mobiles expert at Uswitch.com said, “Mobile phones these days do the job of a camera, music player, television and computer, but you certainly pay the price for having all that tech in your pocket.
“Premium smartphones broke through the £1,000 barrier a while ago, and there’s no sign of the prices coming back down.
“We pay for our smartphones in manageable monthly payments, so it’s easy to forget how much we’re spending on these technological works of art.
“Although top-end handsets are soaring in price, there are models on the market to suit every budget, with the Samsung Galaxy A10 costing just £139, and the iPhone SE offering great value at £419.
“When you’re looking for a new handset, take the time to compare the features of the phones on offer, find what’s right for you, and make sure that you can afford the monthly payments.”