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Average Android phone now costs half the iPhone, and the price gap is widening

Posted: , by Victor H.

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Average Android phone now costs half the iPhone, and the price gap is widening
You probably would not be too surprised to learn that the average Android smartphone is much cheaper than the average iPhone, but what you may not know is that the price gap between the two is actually widening. In 2013, the average price for an Android smartphone dropped to $276, while the average iPhone sold for a whopping $650 (those are off-contract prices, without a carrier subsidy).

Android average prices have declined hugely in the past few years. The drop is from $441 in 2010, to $380 in 2011, $320 in the following year, and lastly to $276 in 2013. Certainly, Android prices have become a big (if not the biggest) factor that has opened up the platform to a much wider market, and now Android dominates the world by market share.

Apple’s iPhones at the same time have also started going down in price, but at a much slower pace. While an average iPhone was sold for $710 in 2011, the price dropped to $686 in 2012, and to $650 in 2013.

What’s interesting, though, is comparing those dynamics to see how the price gap between the two platforms has been growing at a steady pace. At its high prices, Apple is reaping an overwhelming piece of the industry’s profits, while Android phone makers control the market share. Which one is better? For customers, it seems that Android’s model is clearly catching up, but looking from the point of view of companies, Apple certainly does not mind the profit.

Average Android phone now costs half the iPhone, and the price gap is widening

source: Statista

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posted on 17 Feb 2014, 03:55 14

1. Katrina (Posts: 84; Member since: 17 Aug 2012)

statista did a pretty lame analysis...

comparing average iphones?? you mean one iPhone to a billion different types of android phones.... of course theres a huge gap and no doubt the gap keeps increasing because alot of cheap android manufacturers (like china) are entering the market by offering lower prices.

lame analysis just lame

posted on 17 Feb 2014, 04:04 10

3. InspiredSkye (Posts: 10; Member since: 25 Jun 2013)

Is it you or your wallet writing?

posted on 17 Feb 2014, 04:46 7

10. Finalflash (Posts: 3527; Member since: 23 Jul 2013)

No he is right, you can't compare the iPhone to all the Android phones. You have to keep the comparison in its performance and functionality range and to compare it against the high end Android models would be unfair to it. It should only be compared to the low end cheap models (apparently only the Chinese ones according to him) because that is a more fair comparison...Apples to apples and all.

posted on 17 Feb 2014, 08:09 2

18. bossmt_2 (Posts: 457; Member since: 13 Oct 2009)

The title wasn't "comparable average android sale vs iPhone" because the sheer amount of data required and subjectivity (what is comparable, etc.)

Bottom line is that iPhones are more expensive and aside from the Galaxy line, Androids are much cheaper. Compare the market of flagship devices on Verizon (just one comparison there are many other) the base model for all. The iPhone 5s is 649.99, the GS4 is 599.99 HTC One 499.99 G2 499.99 Droid Maxx 599.99 Moto X 399.99.

Those are you comparable models if you would on one carrier, of those guys the average price is 519.99 would be lower if I didn't include the Droid Maxx, just wanted to include it for posterity. The iPhone is over priced, everyone knows it, you crying about the stat used won't change that.

This is a totally valid stat and it has to do with broadcasting what the emerging market is doing to the cost of phone with the slow death of the high end phone because of emerging markets. There's a reason Android is growing despite the iPhone being introduced into more markets.

posted on 18 Feb 2014, 12:59

50. ardent1 (Posts: 2000; Member since: 16 Apr 2011)

Dude, you should stop drinking the kool-aid.

Look at what Xiaomi charges for its top of the line android devices and look at the high-way robbery or fleecing that Samsung charges its over-priced products.

Android devices are commodities, and Xiaomi sets the standard for how much people should pay. $600 for a Samsung S4? -- in your effen dreams.

posted on 21 Feb 2014, 05:42 1

57. Droiderr (Posts: 35; Member since: 05 Mar 2013)

this shows how ignorant you are... 1st of all go and check the price of device and get your data correct. I dont live in the US so cant quote wxact rate. But doa search on amazon or ebay and you will get the price of s4 around $500. Even in india it being sold at equvalent of $500. So should be lesser in US.

And if u call samsung as overpriced i dont know what will you call apple and HTC. Eapecially apple which is selling a 10 year old technology in the market.

posted on 02 Mar 2014, 20:08

61. Kaiser2007 (Posts: 173; Member since: 16 Nov 2013)

@bossmt_2, @ardent1

You two miss the point. What FF trying to say is: "iPhone is crap. So, it should be compared to low end Android phone".

Btw: That's what I think he means.

posted on 07 Mar 2014, 12:09

62. Charlie_boy (Posts: 71; Member since: 04 Jan 2013)

Yup.. it's like comparing apples to key limes...
How about iPhone price vs averga flaghip price of the top 10 android manufacturers

posted on 17 Feb 2014, 09:56 2

26. techaman (unregistered)

they should also include the phones abilities/ functions lol if that was on the news people would say hey apple stop stealing our money for your name. just like the courts did in germany for price fixing.

posted on 17 Feb 2014, 12:09 1

36. willard12 (unregistered)

First, I thought Apple also started making the 5C? If the 5c was just my imagination, then a fairer comparison would be matching comparing the cost to build a device with the retail price. Since the iphone 5S only costs $197 to build...lower than every flagship Android device, the results would be the same.

posted on 17 Feb 2014, 04:04

2. X.E.R.O. (unregistered)

That's Android for ya'.

posted on 17 Feb 2014, 04:07 19

4. _Bone_ (Posts: 2155; Member since: 29 Oct 2012)

This is why we love Android. iFans gloat in their company being the most valuable, guess what, that's because you are overpaying them. I'm pretty satisfied with my $200 Nexus 4.

posted on 17 Feb 2014, 04:33 15

8. tech2 (Posts: 3487; Member since: 26 Oct 2012)

Yup. My £100 ($160) Moto G isn't bad either. Beats iPhone in every category except camera.

posted on 17 Feb 2014, 11:36 1

33. hurrycanger (Posts: 1625; Member since: 01 Dec 2013)

Moto G ftw! It's good that the battery on that thing does last, unlike the Nexus 4 (which sure is a lot better, but the battery life sucks...)

posted on 22 Feb 2014, 09:42 1

58. Bioload25 (Posts: 213; Member since: 12 Nov 2012)

Im an android fan,but I've got to admit that the moto G isnt that much better than the iPhone 4s
Lets respect Apple and its products,because even though android flagships (or even mid rangers) have better hardware,the simplicity of iOS continues to catch the costumers' hearts and money

posted on 17 Feb 2014, 08:46 1

21. Sauce (unregistered)

I'm extremely satisfied with my $200 iPhone 5 and $0.00 iPhone 5s.
Not to mention my $200.00 Note 2 a while back.

While we're here, an off contract GS4 costed about the same price as an off contract iPhone. Thing is, most popular phones cost the same off contract. By popular I mean the Galaxy-iPhone line.

posted on 17 Feb 2014, 09:13

23. silver91342 (unregistered)

Only when they launch, GS4, HTC One, LG G2, all fall very fast in off-contract about a month or so later.

posted on 17 Feb 2014, 11:32 3

32. hurrycanger (Posts: 1625; Member since: 01 Dec 2013)

$200? Dude, if you compare contract price to full retail price, you are doing it wrong. xD
Don't stay in the level of intelligence phone carriers want to lock you in.

posted on 18 Feb 2014, 11:46

48. profperez1 (Posts: 71; Member since: 08 May 2012)

Cost to buy it--the only way to judge. And then cost of ownership. So what you buy the phone for AND what you sell it for in 12-24 months. You will find the gap closes. I spent $800 on my iPhone 5. If I decide to sell it when the 6 comes out----will be in a much better position. I will likely keep the 5 and give it to my kid---which in the long haul is more stable.

posted on 17 Feb 2014, 11:43 2

34. Taters (banned) (Posts: 6474; Member since: 28 Jan 2013)

Except the GS4 actually costs a heck if a lot more to make. Don't be fooled by the estimated costs by those Ifixit sites. Those sites don't factor in the overhead of Samsung building factories and buying the materials to make all of those parts.

1080p screen vs less than 720p
2gb ddr3 ram vs 1gb ddr1
Gorilla glass 3 vs. Some low budget high yield version of gorilla glass 1
2600 mah battery vs a 1450 mah

You can't compare them. Apple rips you off plain and simple. You can't really justify it based on hardware. Software maybe but even that is a stretch considering how simple it is compared to other operating systems.

posted on 17 Feb 2014, 14:11

37. Sauce (unregistered)

It's all relevantly the same cost to make. A few paper specs don't change much. You sir have been the fooled consumer.

posted on 17 Feb 2014, 21:05 1

38. roscuthiii (Posts: 2241; Member since: 18 Jul 2010)

"Relatively" is the word I believe you were going for. Wrong word-of-the-day from the Rolodex.
And while it's true that not all specs on paper change the cost all that much, there are a few paper specs on paper that are much more "relevant" to higher production costs, plus specs that won't be found on paper.

(Also, my apologies for the grammar police moment there, but I just spent all day with someone using the wrong words trying to make himself seem smarter than everyone else in the room. It's a sore spot right now.)

posted on 22 Feb 2014, 22:30

60. apple4never (Posts: 1064; Member since: 08 May 2013)

galaxies are pretty much android iphones are they not?

posted on 17 Feb 2014, 04:13 10

5. Just.Saying (Posts: 132; Member since: 04 Apr 2013)

In android terms, The hardware specs on the iPhone5 makes it entry level. So yeah, it is over priced.

posted on 17 Feb 2014, 09:49 1

25. T.F.O.A (Posts: 36; Member since: 14 Dec 2013)

Entry level spec on iphone 5 is optimized for OS itself. Software and hardware are balance, and the result is great performance.

posted on 17 Feb 2014, 10:25 4

27. bayusuputra (Posts: 963; Member since: 12 Feb 2012)

true that, a balance between mediocre hardware and mediocre software.

posted on 17 Feb 2014, 11:59 7

35. willard12 (unregistered)

"Optimized" software that doesn't have widgets, real multitasking, bluetooth file transfers, drag and drop file uploading, file management, micro sd support, etc.. It's essy for the hardware to perform great when it only has to launch apps. Oh, it also scrolls left and right like a champ for viewing of all the pastel draped icons.

posted on 17 Feb 2014, 21:57 1

43. jeff1434325 (Posts: 97; Member since: 07 Aug 2012)

LoL....u nailed it!

posted on 20 Feb 2014, 02:52

53. tacarat (Posts: 805; Member since: 22 Apr 2013)

Throw in "alphabetized sorting". I hear it's all the rage.

posted on 17 Feb 2014, 21:18

40. redbowl (Posts: 3; Member since: 17 Feb 2014)

The iPhone consistently has the best performance out there. There is nothing entry level about its CPU or GPU performance, and this is before we get into inherently faster input lag, better apps, etc.

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