Excitement of using a new gadget is killed in a few days when its price drops. Price of electronics goes down from 30 to 70%. This is huge. For example, buying a $5000 worth of camera suffers annual depreciation of $1000.
The reason is that companies are releasing newly developed product too fast. It saturates the market quickly and the product value drops down.
Impact of depreciation on technology industry
Fortunately, this means getting stuff cheaper but unfortunately to offer cheaper rates and monopolize the market manufacturers cut corners. The quality gets compromised and you will not get good resale price for any kind of electronics.
According to professional resale and Trade-in Company, electronic prices depreciate swiftly in comparison to Apple products. New Apple products are expensive and only few buyers can afford buying them but there is a huge demand for used Apple products. Actually, Apple aims to produce high quality that lasts longer with OS upgrades.
Consumers are losing confidence because they are getting snowed with crappy gadgets that depreciate rapidly. Today, the demand for new tech is rising and the revenue is expected to reach $321 billion. However, this may look like a defeating battle soon because consumers will ultimately stop buying.
Therefore, it becomes necessary for manufacturers to maintain consumer’s confidence and buyers to stop wasting their hard-earned money.
Tips for manufacturers
Stop often-release garbage – Constant change in gadgets and releasing a new version makes people nervous. They are becoming aware that a new product bought now will get outdated in maximum six months.
Stop releasing half tested products
In electronic industry being an inventor of new tech is hardly the best choice. Worst scenario is spending significant capital on electronic with an assumption it will work and releasing in the market. Next unfortunate thing is that consumers discover that the product does not work because it was not tested properly. Consumers just hate this situation and it is bad for your business.
Stop ignoring consumers
Manufacturers ignore consumers as long as they are getting good sales statistics but this may get hindered at some point when buyers will soon stop purchasing their products. Today, consumer complaints are decreasing because users are empowered with social networking sites and forums. From these Medias their voice is actually listened or it can hurt the manufacturer’s bottom line.
Tips to consumers
Compare specs carefully
Youngsters demand for updated specs is on the rise. They need to learn that the new version has a small hardware modification, so it is wise to review detailed specs to check key features of the upgrade One Plus Smartphone. Impulse purchase can turn out to be costly, if you purchased a new gadget with updated specs finding later on to be unworthy.
Consider repair first
Replacing a poorly functioning or broken appliance or device is not the only solution. Damaged parts can be repaired or replaced. When you experience an issue with electronics consult a professional technician. He will help you to determine if the problem is fixable and worth repairing.
Review previous model
New electronic release decreases the current model price significantly. It does not matter, if you go shopping for a Smartphone, refrigerator or LG air-conditioner check the price and specifications of previous models. Stores are keen on removing old inventory, so buyers get a good chance to get significant discounts.
Consumers can look for refurbished gadget or trade-in the old one for new. The condition is the main aspect of resale pricing, so take utmost care of your electronics.