2,800-euro smartphones: bubble or inflation?

2,800-euro smartphones: flagship prices soar while purchasing power stalls

There are already smartphones that cost 2,800 euros. A price that, a few years ago, was unthinkable for a phone. But inflation, driven by money printing, has normalized it. At least, that's the argument of some analysts: if the money supply grows, the prices of aspirational goods grow too. The problem is that wages are not keeping up.

Bubble or just inflation?

For 2,800 euros you can get a high-end laptop that can do it all. Compared to that, the phone seems absurd. Some see a bubble about to burst: demand for expensive phones cannot be sustained when most people get by with 200-euro models. Samsung, with its Galaxy A42 5G, proves you can get by perfectly well without spending a fortune.

Others, however, point out that if you adjust for real inflation (not the official, doctored figure), the price is not so outrageous. The problem is that the middle class's purchasing power has been eroding for years. Just ask those who live paycheck to paycheck.

Responsible consumption or whim

Behind the decision to spend 2,800 euros on a phone lies a debate about consumption. Is it a necessary product or a whim that only brings regret? Most of those who have weighed in agree they would not buy it. They prefer to wait and see how the Tri-Fold evolves, or simply not upgrade until their current phone dies.

The striking fact: while some justify the price by accumulated inflation, others see it as a sign that tech prices have become detached from the real economy. The question that remains: will this bubble hold, or will it burst when the average consumer says enough?