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You’ve probably noticed that tech gadgets often come with a variety of options at varying price points. For example, you can buy a basic smartphone for around $150, but if you want an iPhone or Samsung Galaxy, you can expect to pay nearly $1,000. The same is true for desktop and laptop computers, televisions, GPS devices, game consoles, and even office equipment.
When technology comes with a high price tag, it’s usually because the components are built with superior materials, which increases the cost of production. There’s still a good profit margin for the manufacturer, but they can’t charge extremely low prices like their competitors. And if their product is superior, it’s worth the higher cost.
Inflation causes parts to rise in price
In addition to better components, inflation also plays a role in the cost of building certain pieces of equipment, whether it’s a laptop computer or a power transformer. Inflation causes the cost of everything to rise, but it has a bigger impact on tech components that are made of precious metals, rare Earth metals, and other elements.
For example, the cost of certain metals, like steel and copper, has risen significantly in the last several years. Since high-quality dry-type transformers use copper windings, the price of obtaining a new transformer has also risen accordingly. Manufacturers who don’t use copper have been able to keep their prices lower, but you get what you pay for. Copper is superior, and when quality is a priority, there’s no way around the cost.
Copper is also used in computers along with gold. Both of these metals are rising in price significantly, causing brands to increase their prices by around 20%. Because of this, it’s been predicted that all computers and tech devices will continue to rise in price. Unfortunately, there’s no way to stop the impact of inflation.
You won’t have to replace good tech as often
The main reason people spring for higher-priced technology is to get all the bells and whistles, like getting the latest iPhone to have all the AI-powered features. Although cool features draw people to pricey technology, the benefit is it will usually last longer. You can still choose to buy a new iPhone every couple of years, but it’s not necessary.
Superior technology is made with superior components
Cheap things break easily because they aren’t made with durable components. For example, cheap laptops are made with lower-quality graphics cards, screens, and keyboards. Because of this, many people experience breakdowns as soon as a few weeks after their purchase. Keys start popping off, pixels on the screen go dead, and graphics cards start lagging even during lightweight tasks, like opening a browser window.
On the flip side, there are more expensive laptops available, and the price tag is a reflection of the superior components. Apple computers and other gadgets are great examples of higher price tags reflecting better components. Whether you prefer Windows or macOS, Apple makes high-end devices with components that simply don’t break down as easily as Windows-based devices. That’s because Apple oversees every aspect of production for all of their devices, not just the operating system. Windows devices are made by a wide range of manufacturers.
There are plenty of Windows computers priced just as high, or higher than Macs, and those machines are built with better components than their cheaper counterparts. For example, business laptops are designed to withstand constant and long-term use, which necessitates higher quality graphics cards, motherboards, processors, and hard drives.
The bottom line is that some technology is more expensive because it costs more to source reliable components.
You get what you pay for
A wise person once said, “You get what you pay for” to point out the perils of going cheap, but that’s not necessarily a bad thing. Sometimes the cheapest option is the best move, especially when you don’t have a choice. For instance, if you only need a basic smartphone, it makes more sense to buy a cheap, generic brand. Likewise, if you don’t have $2,000 to drop on a brand-new desktop computer, buying a refurbished computer from eBay for $400 will still put a computer into your hands.
You get what you pay for, but you may not want or need fancy, updated technology. Sometimes simple is better, even if it doesn’t last as long. It depends on your specific needs. If you’re running a business, it’s not a good idea to go cheap.
However, if you don’t have the money to buy the latest and greatest gadget, there’s nothing wrong with settling for something more affordable.
