The technical specifications of the Fairphone 2 are more advanced than our previous Fairphone. This was a conscious decision related to our ambitions for longevity, as higher quality components will help ensure that the phone lasts longer and higher initial performance will enable you to enjoy the product for longer.
In addition to higher-end components, the other major factors that determined the phone’s price include our original design and production volumes. While the first Fairphone was created using an existing design, starting with the Fairphone 2 we are investing in a significant amount of research and development to create new designs that are exclusively ours and reflect our goals and ambitions. Compared to other manufacturers that might produce millions of units, we are producing a relatively low volume of phones. Because of this we don’t get the price breaks attached with high volume commitments.
Finally, international exchange rates have played a role in determining the price of the Fairphone 2. We purchase everything in US dollars, and since we started working on this product, the value of dollar has been appreciating relative to the Euro, which is the currency in which we (mostly) sell our products. The stronger dollar has therefore made the cost of producing our phone more expensive in Euro terms.
We published a cost breakdown to show you where your money goes when you buy a Fairphone 2.