Numerous mobiles are getting launched every now and then. Some are with new and innovative features and other offers base features. With time old configuration and features come in a lower end model. There are phone models ranging from thousands to tens of thousands. Price range is increasing with new functionality and features being added. Research on mobile phones is going on all aspects. Make it better to view, better to handle, light weight, slim & trim, less volume, high speed, high memory and longer battery life. It is possible that more the research is being done on these features more is the cost of mobile set.

With new phones coming up shelf life of phones is less. It is only a few months. There is competition from other brands and within own brand. With competition, prices are competitive as well. Up to some level only it seems that price of a mobile unit is getting affected because of competitor brand in contrast to other products where prices are kept in alignment with others brands like soaps, chips etc. When for mobile phones pricing is being affected to a limited level then how it is being done. One factor is based on research (as mentioned above) and other new phone version coming up for the same brand.

A new phone with more features means old phone would be selling out less. Discounts have to be given on the old guy. To give discounts on older version instead of giving it at a go it should be gradual. With every x units of sales a discounted price should be offered for future sales. This should go on after next x or y units of sale. This may keep the phone sales momentum.