How much are tech products predicted to cost in the future?

How much are tech products predicted to cost in the future?

author: Sarah Neate

By Sarah Neate

It may feel that the price of tech is always on the rise - smartphones and consoles seem to be increasing with each release. But how much are these products really increasing by?

Ocean Finance has looked at the price changes in tech products from some of the most popular brands like Apple, Samsung and Google to see which are the worst offenders for increasing their prices year on year before estimating their prices in 2040.

The five worst offenders for tech price hikes

Let’s start by looking at the worst offenders for tech price hikes by looking at their cheapest products on the market on release:

Product

Price on first release

Latest release price

Est. price 2040 and the increase from 2021

Average release increase

1. Xbox

£299

£499

£709 (+£210)

36%

2. PlayStation

£229

£449

£618 (+£169)

21%

3. Apple iPhone

£399

£799

£1,351 (+£552)

10%

4. Samsung Galaxy S

£449

£769

£1,349 (+£580)

6%

5. Google Pixel

£599

£599

£602 (+£3)

0.6%

 

The five popular products we looked at increased by a huge 15% on average for each release.

 1. The cost of an Xbox console increases by an average of 36% each release

Gamers beware: the prices of consoles are hit the hardest out of all the tech we looked at. On average, Microsoft’s Xbox increases by 36% each release.

In 2040, you could be looking at paying over £700 for the latest Xbox release. That’s over double the price of the first Xbox (£299) which hit UK shelves twenty years ago and over £200 (£499) more than the latest release in 2020.

 2. A PlayStation could cost you over £618 in 2040

Next up, we have the Sony PlayStation which increases by an average of 21% for each release.

This means that by 2040, you could be shelling out over £600 for Sony’s latest release. However, they may match the price of the Xbox so it could be even more - we’ll have to see who sets their price first.

It’s not just the consoles that are increasing in price - a typical game on the PlayStation 1 was around £20 in the late ‘90s. New games on the PS5 start from a minimum of £60 showing a huge 300% increase.

 3. In 2040, the iPhone could cost over three times as much as the first iPhone

When you think of a tech brand that’s always increasing its prices, Apple will likely come to mind. They made the headlines back in 2017 with the flagship iPhone X - the most expensive smartphone to be released.

On average, each iPhone release increases by 10% meaning the 2040 iPhone 33 will likely set you back around £1,351, which is £552 more than the 2020 iPhone 12. Thankfully, they learnt from the iPhone X but Apple is still leading in smartphone price increases.

4. The Samsung Galaxy S could increase by nearly £600 by 2040

Not far behind the iPhone, we have the Samsung Galaxy S which increases by a reasonable 6% each release. The tech giant’s next release will likely be over £800 going by the current rates and by 2040, however, it could cost you £1,349 for the 31st version of the Samsung Galaxy S.

To date, the Galaxy S peaked at £799 for the basic model Samsung Galaxy S10 and S20 but has dropped by £30 for the 2021 release, reducing the average increase.

5. The Google Pixel is increasing at a rate of less than 1% per release

The Google Pixel was initially released in 2016 for just £599. The popular smartphone is set at the same price today as it was five years ago after initially increasing. The phone peaked in 2018 at £739 but prices have dropped back down over the last few releases.

This has resulted in an average increase of just 0.6% per release which means it’ll likely only cost you a few extra pounds in 2040 than it does now. Fingers crossed Google will maintain their impressive pricing and keep the Pixel’s cost down.

Some of Apple’s tech prices are on the fall

But it’s not all doom and gloom - some tech has seen some significant reductions in price since coming onto the market

Product

Price on first release

Latest release price

Est. price 2030 and the increase from 2021

Average release decrease

Apple iPad

£429

£329

£229 (-£100)

-3%

Apple MacBook Pro

£1429

£1299

£1,207 (-£92)

-1%

 

Contrasting the price of the iPhone, iPads and the MacBook Pro have fallen in price since they were released.

A new iPad could cost you as little as £230 by 2030

iPads are dropping by 3% meaning a release in 2030 will likely be just £229 - £200 cheaper than the original 2010 model. Since the first edition, only one release has had a price increase in 2019.

These reductions have given the tablet computer an average drop of -3% per release in its 11 years on the market - making the iPad much more affordable.

A MacBook Pro could drop by £100 in ten years

The MacBook Pro, Apple’s high-end Macintosh notebook was a whopping £1,429 when released back in 2006. Initially, its prices surged, jumping to £1,799 in 2012 when the third generation was released, however, since then, the price has dropped significantly.

The latest release for the basic model was just £1,299 giving it an average release drop of over -1%. If it continues at this rate, by 2030, you could be able to pick up the latest MacBook Pro for just £1,207.

Methodology 

We used the release prices of tech for each iteration since their first release. Each price of the new release was used to find out the annual increase in order to estimate future tech prices. Prices were taken from the original release in the UK for the cheapest model available.

Release average increases were created using the price difference from the original release and the latest release divided by the number of years the product has been available.

Disclaimer: All information and links are correct at the time of publishing.

author: Sarah Neate

By Sarah Neate

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How much are tech products predicted to cost in the future? How much are tech products predicted to cost in the future?