In 1990 the average price of a cell phone was about £1000. This phone did not have any form of internet access. Fast forward to 2021, £1000 can get you a very expensive phone with a 5G cellular internet connection.
This article is going to explore some of the reasons why gadgets nowadays tend to be so cheap.
You can even get cheaper mobile phones during semi-annual sales of some of these online shops.
Here’s a list of some of the reasons why we have cheap gadgets;
1. Less demand and more production
One thing about 21st-century gadgets is that most people have them. Take, for example, a mobile phone, everybody has at least one.
The demand graph for them keeps falling down each year. Of course, many tech companies have resolved this by ensureing they top up their game each year with new specs and some sort of advancement from the previous year.
This brings the question, are they worth the hipe and the high prices they go for? Thats not up for debate in this article, think about it.
Needless to say, because most of these gadgets are within our reach, their prices reduce over time.
Except for the few popular brands we know of, it is almost impossible to count the number of companies producing any form of gadgets.
Many contries have raised their importation tax in a bid to reduce the number of goods being shipped iin the counrty.
This will inturn enchourage more product exportation or rather, local production.
With many companies aiming for the international market, it creates competition and because of this, companies are forced to reduce their prices to make a sell.
Some companies purposefully lower prices so they can drive in more buyers.
3. Little innovations needed
The fast-growing technology has made it easy for companies to manufacture gadgets.
Many patents have expired since the breakthrough in technology reducing monopolies in the way technology products are made.
Easy access to this information has seen companies increase the number of gadgets they produce yearly.
The production cost is no longer as high as they were many years ago and therefore the prices they sell for will subsequently reduce.
4. There are many generic gadgets out here
Technology is no longer new. Of course, there is room for advancement but the basics to creating gadgets are already out there.
Have you ever wondered why there many software engineers that do not have expensive degrees and yet are employed by big tech companies?
It is because the information needed to create many things are on the internet you just need time to sit down and teach yourself.
Of course, gathering physicals resources will be challenging but consider the software part of it done.
Because of this, many companies create generic gadgets that are very cheap and affordable versions. There is nothing that can beat a good price!
5. High economy bringing more demand for cheap products
We have to admit that the pandemic has not been financially friendly to most people. Many people have lost their jobs as companies have been forced into redundancy.
We have to do what we got to do to save money even if it means purchasing the cheapest version of a product.
There’s no need to purchase a smartphone worth over £1000 and get evicted the next month for failing to pay your rent. It is a better option to get a £300 phone and save the rest for emergencies.
6. Technology is getting cheaper
Back in the 1990s technology had not yet advanced and any new gadget in the market would be highly priced.
Software engineers were people with very expensive degrees, now, many people are self-taught software engineers selling their skills at a very affordable price.
Hardware too is becoming very easy to build and make and this contributes to the significant reduction of prices of tech gadgets.
Manufacturing advances also play a role we having cheap gadgets. Manufacturing companies use robots not affected by tiredness like humans are.
Robots also reduce manufacturing costs.
Finally, not all gadgets are cheap. Some companies are after making luxurious electronics gadgets at very expensive prices. It is still notable that over time we have seen the prices of electronic gadgets significantly reducing.