Just five years ago phones were far more affordable.

Let’s jump back to the original too-expensive smartphone, the first iPhone.

But if you actually take a look at the 1.3 billion phones that get sold, I’d prefer to have our software in 60% or 70% or 80% of them, than I would to have 2% or 3%, which is what Apple might get.”.

But people did buy the iPhone — and we all know how that worked out for Microsoft (and RIM, and Palm, and Nokia.) The Apple iPhone now sells for as much as $1,600 if you opt for the highest storage configurations.

The Nexus One may have launched the Nexus program at $529, but Google backpedaled with the Nexus S, Galaxy Nexus, and Nexus 4, which sold for about $350.

Samsung followed suit, as the cost of its Galaxy S series climbed ever upward.

Now, the Samsung Galaxy S20 Ultra goes for as much as $1,599, while the Galaxy Fold goes for an eye-watering $1,980.

“The smartphone market has saturated and consumers are holding on to their phones longer, so manufacturers are trying to get more out of each sale that they get,” said Avi Greengart, President, Lead Analyst, Techsponential.

“While this is opportunistic, it also reflects consumer demand: a smartphone is an important long term investment that is used more often and for more things today than just a few years ago.

Greengart points out that phone makers have responded to $1,600 phones with excellent $800 phones.

It’s worth noting that the best-selling phones from Apple, Samsung, and others aren’t their highest-cost offerings, but are instead the more affordable fare such as the Apple iPhone 11 and Samsung Galaxy A50.

True, Google gives Android away at no cost, but that doesn’t mean phone makers get away scot-free.

Phone makers such as OnePlus, LG, Xiaomi and even Motorola and Nokia, have churned out solid devices that are every bit as worthy of your dollar as is the top-of-the-line Samsung Galaxy Note