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Wow, just read through all of this and there are like 3 separate debates/arguments threaded through.

To those arguing "never", you know the old saying: "Never say never". They will eventually commoditize. It's not impending- maybe not even many years away- but they will. The so-called "new features" that are most wowing tend to be software features and hardware plateaus will support many software app advances (unless artificially limited). As some have said, the hardware can only advance so far before the heat management doesn't support another incremental gain.

While the OP question is generic with "smartphones" instead of specific with "iPhones" (but the answers seem to generally key around iPhones), I'll offer the "thin" benefit consumption as the timetable predictor. Since Apple keeps making a big deal out of "thinner" and "we" keep believing there's some tangible benefit in "thinner" for us, someone should make a chart of the pace of trimming the thickness of each model since the first one. Extrapolate that into the future and you should see the point where the iPhone ___ will become so thin that it no longer exists. At that point, I think it will be hard to sell that iPhone for existing "premium" prices- even with a subsidy.;) Then again, around HERE, I can see people buying what appears to be an empty box to brag to their friends that they are actually holding a phone so thin it doesn't even exist: "your 1mm thick phone is such an antique", "why carry around that .01 ounce abomination?", and so on.

More seriously, as the iPod was absorbed into the iPhone, I suspect the iPhone will be absorbed into something else (and I'm not too confident- nor personally enthusiastic- that that might be an iWatch). I would guess more than one company are looking at a product like Google Glass (of which I'm also not personally enthusiastic) and thinking about how to make the physical nature of the rest of a phone disappear. In other words, I think the physical "brick" disappears- not because Apple's spin of thin eventually makes it physically vanish but because lugging around a brick of any thickness is a chore and a high-value brick is a tempting thing to steal like it's easy to lose or drop.

Look again to scifi. Do they have physical bricks? If you look at Star Trek TOS, they did have communicators that look like yesterday's flip phones. However, look at TNG, and that communication is basically a broche they wear on their clothing. How do they text, SMS, "take a selfie", etc with that? They don't… or don't appear to do so. But they still seem to get everything done they need to get done with the tech of the day. Yes, that's fantasy, but often scifi shows a way or various ways forward and reality takes steps toward them, catches and then surpasses.

The brick is hot now. A thinner brick is hot tomorrow. A bigger-screened one too. Retina. Longer battery life. Faster. Eventually, we run out of hardware gimmicks to spin. Eventually, the hardware is so powerful that small increments make bricks "good enough" to hang onto for one more generation, then two. And then they are like computers where one can update every 4 or 5 years and generally keep up with almost every advance. It's inevitable. And it's probably closer than we want to believe.
 
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I have a iPhone 4S and bought a 16GB Moto G for $ 199.00 unlocked to give it a try and I can not believe what a great device this is, super nice display, very fast, all the apps I had on my iPhone and excellent Google apps built in. I'm not sure if I can see spending big bucks on a device ( phone ) anymore if I can get this kind of quality for a low cost. I'll be keeping my iPad and Mac Mini however!!

Regards.....Ed
 
The smartphone is a different beast to products we've seen historically, and could easily be cited as an analogy of people's short attention span and disregard for sustainability. What other cutting edge product would you buy for £500 and within 12 months want to get rid of it because you NEED the newer version? The term NEED is used in the 'first-world problem' sense.

Let's take, for example, a microwave oven. You buy the microwave to cook food. Throughout its useful life it performs the task you bought it for, and that performance is constant, so you never really feel the need to upgrade until it develops a fault. Hopefully this should be many years.

With a smartphone however, you buy one with impressive performance, and over time that performance would stay constant. It would, except the manufacturer releases a new OS and sells you the idea that you simply must upgrade or you'll be left behind, and they won't actively support your (less than 12 months) 'old' version and you'll be vulnerable to viruses and your friends will think you're a dinosaur. They convince you that all those processor-crippling cute new animations are somehow important to an OS which is basically a launch pad for apps.

The concept of manufacturers actively reducing the performance of your shiny new product before it's even 1 year old in the name of 'progress' is a relatively new phenomenon and one which, strangely, the vast majority of consumers have just embraced.
 
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With a smartphone however, you buy one with impressive performance, and over time that performance would stay constant. It would, except the manufacturer releases a new OS and sells you the idea that you simply must upgrade or you'll be left behind, and they won't actively support your (less than 12 months) 'old' version and you'll be vulnerable to viruses and your friends will think you're a dinosaur. They convince you that all those processor-crippling cute new animations are somehow important to an OS which is basically a launch pad for apps.

The concept of manufacturers actively reducing the performance of your shiny new product before it's even 1 year old in the name of 'progress' is a relatively new phenomenon and one which, strangely, the vast majority of consumers have just embraced.
My 4-year old Nexus S runs much more smoothly with Jelly Bean than it ever did with Gingerbread. While almost every new iOS version introduces performance penalties on older models, stock Android has actually improved with age. Unfortunately, the same cannot be said with manufacturers' skinned versions.

Another thing driving the upgrade-ititis (at least in the US) is the subsidy model. This model penalized consumers who don't upgrade on a 24-month schedule so most folks just upgrade even if their old phones are working perfectly fine. The subsidy model can also be blamed for the unusually high adoption of top of the line smartphone models in the US. The cost of smartphones is effectively hidden in the monthly payments so what people see are just the upfront costs.

That said, phones are mobile devices so it's to be expected that they won't have as long a service life as, say, a 15-yr old CRT TV. Even when I had dumbphones, I think the longest I've kept one was 3-4 years and at that point, the phone can barely hold a charge. Even my laptops get replaced more often than the desktops.

There will always be a market for high-end. Right now though, that market is artificially huge in the US thanks to phone subsidies. Get rid of those and we'll likely see smartphone marketshare breakdowns similar to other countries.
 
Funny, the video game industry doesn't seem to be having the problem you speak of. Most people aren't putting the Xbox One or PS4 down because the previous model was "good enough" and I don't see that happening with smartphones.

As the phones upgrade, people will still want the latest tech.

While there are people buying sub-$600 laptops and computers, there are plenty still buying the mid and top of the line models for their needs at the same $1-2k. That's no different than those buying the cheap smartphones available now.

The previous Playstation is older than the first iPhone. So no, no one is going to say that there isn't enough difference to motivate the upgrade. Likewise, people buy new computers every 3-6 years or so. New phones are released once or twice a year, we are bound to hit a plateau where people just can't bother with upgrading all the time.
 
By definition, cheap will never be "high end".



OTOH, phones have become much more capable. Today's "cheap" phones provide great experiences compared to those of 5 years ago.



For example, my 2-year old iPhone 4s does everything I need it to. It does it rather well. And it's paid off. So why chain myself to a monthly payment for a marginal upgrade when I could put extra cash in my 401k? Or eat out more? Or whatever else I feel like?


Sorry for off topic, I'm in uk and have to ask what is a 401k? I've heard it mentioned in die hard?!!
 
The answer to your question is planned obsolescence. No matter how advanced a smartphone will get, the manufacturers will always plan ahead. Look at the iPhone 4 with iOS 7. Do you think it was an accident that the new version runs slow on the 4?

If obsolescence can't be achieved on the software side, they will make sure the hardware is built to last a limited time frame.

This and competition will dictate the price of smartphones, nothing else.
 
My 4-year old Nexus S runs much more smoothly with Jelly Bean than it ever did with Gingerbread. While almost every new iOS version introduces performance penalties on older models, stock Android has actually improved with age. Unfortunately, the same cannot be said with manufacturers' skinned versions.

Another thing driving the upgrade-ititis (at least in the US) is the subsidy model. This model penalized consumers who don't upgrade on a 24-month schedule so most folks just upgrade even if their old phones are working perfectly fine. The subsidy model can also be blamed for the unusually high adoption of top of the line smartphone models in the US. The cost of smartphones is effectively hidden in the monthly payments so what people see are just the upfront costs.

That said, phones are mobile devices so it's to be expected that they won't have as long a service life as, say, a 15-yr old CRT TV. Even when I had dumbphones, I think the longest I've kept one was 3-4 years and at that point, the phone can barely hold a charge. Even my laptops get replaced more often than the desktops.

There will always be a market for high-end. Right now though, that market is artificially huge in the US thanks to phone subsidies. Get rid of those and we'll likely see smartphone marketshare breakdowns similar to other countries.

The big potential ripple to the model is the move by AT&T to move away from subsidized phones. Or more importantly, the move to offer a lower service price in their family plans for unsubisidized phones. In the old model you paid the same $30/month for service whether your smartphone was 1 day old or 4 years old. Now off contract phones are only $15 a month. And under the NEXT program, a new phone is going to be an extra $25-$42 over than $15 per month...per line.

I think a lot of people are going to decide it's worth keeping their phones a little longer or not upgrading every line in the house like clockwork every two years.

Also agree with the comment about planned obsolescence. There is no question each iOS version is optimized for the latest version and sluggish on older phones for the sole purpose of making you feel like that 18 month phone is SO out of date.
 
Honestly it is very hard to justify an iPhone with the MotoG costing $199... It's such a great phone and you could buy three of those for the price of an iPhone
 
And under the NEXT program, a new phone is going to be an extra $25-$42 over than $15 per month...per line.

I think a lot of people are going to decide it's worth keeping their phones a little longer or not upgrading every line in the house like clockwork every two years.
I agree. Another thing to keep in mind, those prices are mostly for new higher end phones. Something the like Moto G would've been just $10/mo on Next 12 if AT&T offered it. The Moto X is just $20/mo on Next 12. Compare that to the iPhone 4S @ $22.50/mo, 5c @ $27.50/mo and 5s @ $32.50/mo.

I reckon decoupling phone cost from plan costs will really make a lot of folks wonder if that $600+ iPhone 5s or Galaxy S5 is really worth the $400 premium over a Moto G or similar.
 
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