Why are the prices of electronics dropping?
I have noticed that over the years the price of electronics has lowered. A few years ago you could buy a computer that was top of the line then for about $5,000 dollars, but now you can buy todays top of the line computers for around $2,000. Why is this?
- 1 decade agoFavorite Answer
moore's law re computers.
increased production capacity and increased inventory levels for other types of consumer electronics e.g. hdtv's.
- 1 decade ago
Technology always changes. you will see a drop not only in computers but electronics. Computers have been developed way before their time, meaning, there is a model already designed and built for 2007-2008. Also year 2001 there is already a new pentium chip, also new software. They have always built and designed software way ahead, so, if one ever failed there is the next model. Or the business' of the world that want the best of the best buy ever year and upgrade which causes everday users to suffer and pay top dollar for yesterdays product SOLD today.
Televisions, plasma or LCD's are always dropping. Camera systems are forever becoming more powerfull yet less expensive.
Cell phones/appliances/computers/electronics in general/t.v.'s/stereos etc......all have a market for the buyers....if they aren't spending then then bring out the latest and greatest right away quick and put that previous un popular module on sale....therefore selling their junk and also making large on their mistakes by selling their latest that was already conceaved years ago. JUST NOT RELEASED YET.
But can we wait forever.? NO if you need it you buy, if you wait it will come down in price.....HOWEVER the next generation product is out and you just bought obsolite stuff........
MANUFATURERS and DESIGNERS and ENGINEERS......they will get you coming and going, from this day forward and until the end of time.
- 1 decade ago
i think its market saturation reached,5 yrs from now when everyone owns flat panel tvs theyll be the price of a store box shelf variety marketed today. supply and demand dictates alot on price