Why You Might Spend $1,000 on a Smartphone

Prepare for smartphone sticker shock.

A decade into the smartphone era, Apple Inc. and Samsung Electronics Co. are betting they can increase sales by jacking up the price of their flagship products—bucking the usual downward arc for prices of consumer electronics in the years after introduction.

Apple on Tuesday is expected to unveil a more-advanced iPhone—also known as the anniversary iPhone, the iPhone 8 or iPhone X—which...