Tram Town
Tuesday, April 24, 2007
| Category: Economics (101) The Sun has an idiotic article by somebody called Annalise Walliker which purports to show a 50% drop in prices of electronic gadgets since 2004 and which cites greater demand as one of the reasons. I'm guessing that then industry experts quoted really meant greater supply but, if so, what they said was 180° away from their intent. According to someone from Pioneer: The more demand there is the more volume will be produced and the greater the volume the more cost-effective it becomes to manufacture and supply products to the market, allowing companies to be more price competitive.If his TV had been $5000 three years ago with the same features as are available now it would have been selling in very similar volume as it is now. Supply, caused largely by technological improvements, has caused the price to drop; it is idiotic to buy into this modern argument that demand will cause price drops. What's more, the basket of goods includes the superseded PlayStation 2, the twice superseded Motorola V3 phone and a swag of goods which rely on flash memory to operate. Such comparisons are useless. I hope that Annalise is a cadet reporter and that her editor was "making" work for her. I fear, however, that she is a graduate of our tertiary system. Just One Guy's Opinion™ |
