Mobile phones getting cheaper in Switzerland following years of price rises

Over the last few years, Swiss mobile phone prices have only ever gone in one direction: skyward. While Galaxus and Digitec customers were paying an average of CHF 472 per new handset in 2019, the figure had risen to as much as CHF 544 by 2023 – an increase of 15 per cent. Customers were willing to fork out four to five per cent more on a new phone every year.

Now, it looks like that trend’s in reverse. This year, consumers are spending an average of CHF 510 on a new device from Galaxus and Digitec (Switzerland’s largest smartphone retailer) – a good six per cent less than in 2023. Andrea Fricke, who’s on the team responsible for Galaxus and Digitec’s mobile phone range, says, «I don’t think that figure will have changed much by the end of the year.» Although prices are likely to be below average in November due to Black Friday deals, they’ll probably be above average in December because of Christmas.

A look at the prices by screen size reveals that large, popular smartphones with a screen diagonal of 6.5 inches or more have been particularly affected by the price drop. While Galaxus and Digitec customers were still paying an average of CHF 803 for a device of that size in 2019, the figure has fallen to CHF 421 this year. That’s a 48-per-cent reduction.

Phones with a screen size of 4.5 to 5.4 inches have also got cheaper this year. However, given that these handsets make up five per cent of sales, the influence they have on the average smartphone price is marginal.

«In 2019, the iPhone 11 Pro Max was the first Apple phone with a 6.5-inch screen diagonal,» Andrea recalls. The cheapest version of the phone, with 64 GB of storage space, cost CHF 1,200 at that point, and was a bestseller. «Other manufacturers also launched similarly sized models at the time, but they were all Pro versions with accordingly high price tags.»

Competition at its strongest among larger devices

Since then, budget-friendlier brands such as Xiaomi and Oppo have also come on the scene with handsets measuring 6.5 inches and above. This has put a squeeze on prices as a result: «We’re seeing the strongest competition right now among really large devices,» says Andrea. There’s also a good chance prices will drop even lower: «Panels are becoming cheaper and cheaper to produce, and competition on the chip market has gone back up.»

Meanwhile, slightly smaller devices measuring 5.5 to 6.4 inches have only seen minor price decreases this year. Since 2022, Galaxus and Digitec customers who’ve opted for phones in that size have been paying more than those ordering typically sized phones with a 6.5-inch screen diagonal. «This is because larger components are cheaper than smaller ones with the same performance,» explains Andrea. We’re now increasingly seeing smaller devices among the high-performance flagships.

Wondering why people are shelling out more for devices with ultra-small displays? Before 2022, phones of this size were just a compact version of bog-standard smartphones. Now, pricey foldable phones are dominating this product category.

Young people are more willing to flash the cash

The younger generation’s forking out a significant amount of money for new mobile phones, with customers aged up to 24 paying an average of CHF 577 per device. This is 13 per cent more than the average figure across age groups. Compared to the frugal 35–54 age bracket, they’re paying as much as 18 per cent more. Under-25s, however, make up the smallest group of buyers; they’re responsible for just nine per cent of all mobile phone sales.

As far as gender’s concerned, men and women don’t seem to spend drastically different amounts on their mobile phones. While men buy seven out of ten phones sold by Galaxus and Digitec, women only buy three out of ten. However, the amount they’re willing to pay for them is pretty comparable, totalling an average of 512 and 505 francs respectively.

How much did you pay for your mobile phone? Are you willing to give cheaper brands a chance? Or are you a dyed-in-the-wool member of Team Apple or Team Samsung? What’s the most you’d ever pay for a smartphone? The comments section’s all yours!