Why are computers and components becoming so cheap?

Question

I remember only a few years back a PC would cost you £1000+ and now you can pick one up for £200 from the high street. Memory used to cost a lot too and now you can get it virtually free and there are things like 30Gb camcomrders that cost little more than a tape system. Why is it all getting so cheap?

Answer 1

We are learning more and more about the technology and how to produce it cheaper. For a start, transister technology has come on load in the last few years (which is why everything is becoming smaller!).

Answer 2

The are more companies that produce computers or have them made for sale in their stores the cheaper they get. Now days it is possible to go to supermarkets shopping and pick up a computer off the shelf, more stockists means more competition and reduced prices. With advances in micro engineering it is quicker and cheaper to mass produce the component parts and the cheaper labour costs of most parts and systems being made in Vietnam, China etc. A good example of mass production becoming cheaper is the television in the 1970s nearly all houses rented a TV, many of which were black and white, as the cost of buying a TV was very expensive, nobody would rent one today as they are so cheap to buy.
Andy

Answer 3

p.c,s and componenets are becoming cheap because technology is advancing so quickly
a graphic card such as the nvidia geforce 7600gt would of cost you around £250 a year ago,it now costs around £100,this is because newer better cards have flooded the market and manufacturers still need to sell the cards,but wont sell them at the launch price
i have to agree that far east labour has added to the drop in price of p.c,s,like clothes p.c,s can be made by low paid workers and in some cases with inferior parts,but uk consumers are happy to pay £200 for a new p.c,even if it breaks down after a year,for that price you can afford to buy a new one
in the case of memory,the newer the memory the cheaper it is,however you try to buy a old module such as the edo ram can cost up to a £1 per megabyte because they are not made any more and they are hard to find as most people have thrown them out
however just because components are getting cheaper it dosent mean the qaulity is any good,be careful were you buy your parts as you pay for what you get
good luck mate!

Answer 4

cheap production methods, cheaper components more mass production greater demand but mostly its down to economic elasticity which basically means if everyone wants it, and will buy it even if you charge to much for it then, its not elastic, so new things like iPods when everyone wants one you can charge what you like but say CD players are very econmically elestic because if you tried to charge the same as an iPod for one then you woudln't sell any if you charge less so that you still make a profit more will be brought.

Answer 5

As you make more of anything it becomes cheaper.The first models of anything will be the dearest because of the development costs,but as more are made and sold the price tends to reduce.You could say the same about flat screen TVs or DVD recorders.

Answer 6

Automation

Most components are mass produced in totally automated robotic factories employing essentially zero staff. Once the factory has been built, the running costs are esentailly zero.

Answer 7

When PC's starts going down that means their coming out with something even bigger and with more technology.Because they kow people are going to want to buy whatever new comes out.Kinda like how cd players went down after ipods and mp3's came out.

Answer 8

Made in China and Vietnam.
Labour costs really low in these countries.