Why is tech getting cheaper?
Technological innovation is great for consumers. As technology gets more advanced, prices drop and products get better.
The US Bureau of Labor Statistics tracks prices for broad categories of goods over time. As this chart of prices for the last 18 years shows, prices have dropped dramatically in almost every tech sector. The drop in computer hardware is particularly steep.
The one exception? Cable, satellite TV, and radio service.
Lack of competition might be a factor — in a lot of markets, users can choose between their local cable provider, one or two local phone providers, and maybe a single satellite TV provider. There has also been a relentless drop in the price of components used in most electronics gear, thanks to things like Moore’s Law — which says the number of transistors you can fit on a chip will double every 18 months — and manufacturing advances.
That isn’t the case for the infrastructure used to deliver services like TV.
This article is published in collaboration with Business Insider. Publication does not imply endorsement of views by the World Economic Forum.
To keep up with the Agenda subscribe to our weekly newsletter.
Author: Matt Rosoff runs the tech vertical and the San Francisco bureau for Business Insider.
Image: Men are silhouetted against a video screen as they pose with smartphones. REUTERS/Dado Ruvic.
Don't miss any update on this topic
Create a free account and access your personalized content collection with our latest publications and analyses.
License and Republishing
World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.
The views expressed in this article are those of the author alone and not the World Economic Forum.
Stay up to date:
United States
Related topics:
Forum Stories newsletter
Bringing you weekly curated insights and analysis on the global issues that matter.
More on Emerging TechnologiesSee all
Michele Mosca and Donna Dodson
December 20, 2024