Whats causing the decline of consumer electronics prices?
The decline of consumer electronis prices are often caused by supply and demand. Usually the more popular a product is the higher its price will be. If their is a surplus of the electronics prices may decrease. A new electronic product that is up-to-date or more innovative may also cause prices of consumer electronics to decline.
In spite of what they say in Economics 101, the ‘law’ of supply and demand plays only a limited role in the price of consumer goods. The price of consumer electronics is affected by many factors, including: – Mass-production methods that reduce the cost per unit of producing an item. Not all product designs benefit to the same degree and some design changes are made for the convenience of production, rather than for product quality. The quality of a mass-produced product may be lower than that of a product made with more labour-intensive production methods. – Reducing the quality of the components used in the products. Some of these savings are due to the mass-production of certain components and sub-assemblies from suppliers, but the price is also affected by purchasing cheaper, lower-quality parts. – Simplified designs that use commercially-available components and sub-assemblies. Some commoditized products require very little effort on the part of a manufacturer to produce, since co
