According to a forecast from Bitkom, the average price of smartphones in Germany is expected to increase by three percent this year, reaching 646 euros, which is significantly higher than what consumers are willing to spend. This rise in cost is attributed to the increasing prices of key components, like memory chips, which can represent 15 to 20 percent of the material expenses for mid-range devices. Therefore, there is a concern that consumer demand is likely to decline, with projections indicating a further drop in smartphone sales by about four percent by 2026, potentially reaching only 18.8 million units.

Sebastian Klöß, the head of Technology and Markets at Bitkom, explains that due to the inflationary pressures on prices, manufacturers may adapt by providing devices with less memory in order to keep sale prices more manageable. This approach aims to counterbalance the rising costs and maintain consumer interest, though it may not completely eliminate the price hike. The situation reflects broader trends in the technology market where production costs are impacting the pricing strategies of manufacturers.

In response to these rising prices, German consumers are adjusting their behavior by extending the lifespan of their smartphones and opting to use their devices for longer periods before upgrading. This consumer shift may reshape the market dynamics for smartphone production and sales, necessitating manufacturers to innovate and cater to a more cost-sensitive consumer base, ensuring quality and performance while staying within acceptable price ranges.