The cost of cell phones has decreased over time thanks to the proliferation of mobile technology and Moore’s Law. The first handheld
cellphone, the Motorola DynaTAC 8000X, cost a whopping $11,000 in today’s currency.7
National Museum of American History. “Dynatac Cellular Telephone.”
That cost has gone down significantly. For instance, the average cost of a smartphone was around $471 in 2014 and dipped down to $402 in 2016.9 Prices may be lower, but they’re still not cheap. That isn’t affecting demand, though.