Why tech is getting more and more expensive

The 1,500-euro smartphone no longer shocks anyone, the console forgot to lower its price as it aged, the subscription has sneaked into everything — from software to heated seats — and the cheap TV makes up for it with your data. Tech, long deflationary by nature (always more for less), seems to have reversed its promise. Why is everything increasing — real industrial reasons, assumed strategies, and opportunistic inflation mixed? And above all: how to equip yourself intelligently in this new pricing regime? Decryption.

The real causes: what has really driven up costs

Part of the increase is industrially justified: advanced chips cost structurally more with each generation — cutting-edge lithography requires factories costing tens of billions, concentrated among a handful of players (the geopolitics of semiconductors — tensions, subsidies, relocations — is paid for in every device); supply chains reorganized after crises (diversification outside Asia, safety stocks, transport) have a permanent cost; materials (critical metals, rare earths) and manufacturing energy have become more expensive; exchange rates weigh in Europe (prices are thought in dollars — the weak euro is reflected on price tags); and R&D for technological leaps (computational photography, embedded AI, foldable screens) is amortized over volumes that, themselves, stagnate — the smartphone market is saturated: fewer units sold, more margin needed per unit. Add the real extension of quality — devices last longer, are repaired better, and receive updates for more years: part of the price buys additional usage time. The honest portrait: manufacturing high-end products objectively costs more than before.

The strategies: what comes from brand choices

The other part of the increase is deliberate: organized upscaling — manufacturers have discovered that selling fewer, more expensive devices works better: the four-digit « flagship » anchors prices, the mid-range slides upward, and the entry-level disappears from storefronts (it still exists — see below); surgical segmentation — Pro, Max, Ultra, Plus: the range of versions creates a higher basket (the « base » model, cleverly limited, pushes toward the superior); subscriptionization — the big shift: software, storage, games, object functions (even car options with monthly tolls): the purchase price drops on the surface, the cost of ownership explodes cumulatively — subscriptions are painless by design, and that’s exactly the problem; locked ecosystems — proprietary accessories, biased compatibility, switching costs: captive loyalty supports prices that free competition wouldn’t accept; and opportunistic inflation — the general wave of increases has provided a convenient cover for price hikes without industrial cause (some segments’ margins are doing very well, thank you). Distinguishing the two families of causes isn’t academic: you can’t negotiate the cost of chips — you can outsmart the strategies.

The right reflex. Think in terms of cost per year of use, never in sticker price: a 900€ phone kept for five years (battery replaced mid-life) costs 15€ per month — less than a 500€ phone replaced every two years. The questions that matter at purchase: how many years of guaranteed updates? Is the battery replaceable at a reasonable cost? The repairability index? The true price of modern tech is read over time — and that’s where price hikes are best offset.

Paying less: counter-strategies that work

The consumer has more weapons than they think: refurbished and second-hand — the number one counter-offensive: a high-end model from two years ago, refurbished and guaranteed, offers 90% of the experience at 50% of the price (and with devices lasting longer, second-hand has never been more rational); generational lag — buying last year’s model when the new one comes out: immediate discount without real obsolescence (annual progress has become incremental — that’s also why prices are rising: you’re no longer sold a leap, but a status); deliberate downgrading — current entry-level and mid-range models surpass the high-end from three years ago: for most people’s real use (messages, photos, web, video), the modern « base » model is excellent — the limitation is marketing, not functional; subscription audit — the semi-annual hunt for deductions (duplicate storage, forgotten apps, options) often yields more than all promotions combined; purchase timing — real discounts exist (end-of-line, commercial periods — compared via price histories, which expose fake deals); and duration as a central strategy — case, replaced battery, repair: every year gained is the best market discount (the right to repair, which is progressing, is your ally — see our dedicated article). The common thread: refusing the purchase pace the industry suggests — that’s the real price.

Tomorrow: where prices are headed

Trends to integrate into your choices: AI as the next price hike argument — embedded intelligence features already justify upscaling (dedicated chips, increased memory) and tomorrow « premium AI » subscriptions: the reason is partly real (the hardware costs), partly the next guise of segmentation — the same reflexes will apply (the useful vs. the status symbol); European regulation as a counterbalance — universal charger, replaceable batteries (the deadline is approaching), repairability, guaranteed minimum updates: each obligation extends lifespan and shifts power to the buyer — Europe has become the best tech consumer service; market polarization — on one side, an assumed technological luxury, on the other, a solid functional offering, and a middle that is evaporating: knowing which side your real needs are on becomes THE buying skill; and stable equipment — the great silent novelty: you can now be perfectly equipped by renewing each device half as often as ten years ago — expensive tech is also durable tech, and a disciplined household’s overall budget can, paradoxically, decrease. Price tags are rising; the rise in usage cost, however, is fought — and won.

Frequently asked questions

Will smartphones continue to get more expensive?

The high-end, probably — it now assumes a technological luxury positioning, with AI as the next excuse. But the key is elsewhere: the mid-range has never offered so much, refurbished devices structure a massive second life, and lifespan is increasing — the real usage cost of a savvy household can decrease while price tags rise. The two curves are diverging: choose yours.

Why don’t consoles lower their prices anymore?

The old model (console sold at a loss, recouped on games, price dropping with costs) has given way: sustainably high production costs, steady demand, and a shift in the economic model toward services (subscriptions, stores) that make price drops less necessary. The real deals are moving toward bundles, second-hand, and subscription catalogs — the machine’s price is no longer the adjustment variable.

Is « cheaper » financed by ads and data a good deal?

It’s a price paid differently: TVs that profile your viewing, devices saturated with sponsored apps, free services in exchange for data. The trade-off is personal but must be conscious — and a few settings (limiting ad tracking on TVs and set-top boxes, for example) reduce the invisible bill without touching the price tag.

What to remember

Tech is getting more expensive for a mix of real reasons (chips, supply chains, R&D, exchange rates, increased quality and lifespan) and strategies (organized upscaling, segmentation, subscriptionization, opportunistic inflation) — you can’t negotiate the first, you can outsmart the second: think in terms of cost per year of use, embrace refurbished and last year’s model, dare the mid-range (excellent for real use), audit subscriptions, make devices last through repairs — and beware of split payments that make « possible » what wasn’t. European regulation is pushing in the right direction (repairability, updates, batteries); the rest is in your hands: the industry has chosen to sell fewer, more expensive products — the smart household buys better, even less often. In the long run, that’s who wins.