Table of Contents
- 1 Economics 101: Supply and Demand
- 2 The Best Time to Buy Electronics Is Hard to Predict
- 3 You Can Tell When Cheap Prices Are Coming
- 4 You Need Good Electronics to Live Your Life
If you took high school economics, you should be familiar with the basics of supply and demand. The more people demand a product, the higher the price will go as companies recognize an opportunity to make more profits. Without enough demand, companies will decrease the supply of a product, until they stop making it entirely.
Companies that produce consumer goods will also reduce the price of their products over time. As people demand certain cars, groceries, or electronics less, then the less they will cost. Theoretically, that means the best time to buy electronics is a while after they are released.
Yet, there’s more that goes into determining when you should buy electronics than just their price. For example, electronics functionalities can decrease as they age, making older devices lose their value. You may end up spending more an older device than it’s really worth, costing you more than if you bought a new one.
It just makes purchasing electronics a complicated process. You need as much information as possible to know when it’s the right time to buy a device. Keep reading below to learn when the right time is, and how to tell!
Economics 101: Supply and Demand
The fundamental concept behind all of economics is supply and demand. The amount of demand and the amount of supply in any given market is represented on a graph. Two curved, intersecting lines represent the forces governing any market: supply and demand.
The price of any good or service can be found by seeing where these lines intersect. Generally, markets try to keep an equilibrium between supply and demand. These curves would intersect at their exact center in a perfect market.
Yet, there is no such thing as a perfect market. They’re messy and complicated things with too many moving parts for any person to fully understand. Keep reading below to learn more about how markets work, especially one as consumer-driven as the electronics market.
Movements Along a Curve are Driven by Price
Supply and demand movements are when the supply or demand of a product change along its curve. The curve itself may not change, but the point at which the market agrees that a product is worth can change. When that agreement changes, it’s called a price movement.
Generally, price movements are caused by changes in something’s supply. A change in supply can be driven by a sudden change in the demand for something. People lose interest in different products over time, which inevitably brings the demand for a product down.
Alternatively, such as in the electronics market, things get old. Technology improves at such a rapid rate that what was incredible one year may be worth next-to-nothing the next. So with every new generation of devices, the price of the old will fall as demand for it falls. That also means you should research devices before buying them!
Curve Shifts Are Caused by Other Factors
Markets don’t just move along supply and demand curves. Sometimes, the curves themselves may move to a lower or higher price. When this happens, it’s usually because of an extenuating factor from outside the market.
For example, if a storm hits a major production facility for iPhones disrupts their production, the supply curve for iPhones will fall. The line itself that the market moves on will decrease in quantity, causing the point at which it intersects the market demand curve to rise.
As a consumer, that means you shouldn’t buy electronics if something disrupts their supply chains. In fact, if anything disrupts the electronics market, you should back away from it. Electronics are a delicate thing to create — a lot can disrupt the market. It’s more fragile than people realize.
Wait until the price stays consistent for a little while before laying down any money, even if it seems high. It’ll either get higher, or the product will lose its value.
The Best Time to Buy Electronics Is Hard to Predict
No matter how many tips you research about the best time to get a new phone or computer, there’s no way to know for certain. Markets are simply unpredictable, especially one as fragile as the electronics market. It depends on too many different supply sources and the demand for its products fluctuates based on ebbing cultural trends.
Combined, that makes the price of something almost impossible to predict. The best time to purchase electronics may not be when the price reaches a certain point. It may instead be simply when you decide you need an upgrade, or if something breaks.
Companies Always Try to Cut Production Costs
Although the market may fluctuate wildly, there’s one thing you can always be certain of: companies will always try to reduce costs. By reducing the costs associated with making something, they can make more money from each sale. And they will try to save money any way they can.
For example, companies may find different suppliers or use different materials if it means saving money. They may also change up their executive team and use virtual executives instead of traditional ones that take millions of dollars out of company revenue. Click here for more info.
You Can Tell When Cheap Prices Are Coming
As a consumer, you actually have an advantage in the electronics market. The market corresponds with retail market fluctuations since electronics are almost entirely consumer products. If something reduces the prices of things from retailers, then the price of electronics will fall too.
That means you can be sure that the price of a new phone will fall when the holidays come around since stores will have sales to get rid of their stocks. Older electronics will also almost always cost less. Stores will reduce the price of older generations to make room for new ones when they’re released.
To save money on electronics, just do it in the same way you would with anything else. Time your purchase correctly, and you’ll have brand-new electronics at a lower price!
You Need Good Electronics to Live Your Life
Although you should always be on the lookout for ways to save money, you also don’t want to skimp out on your electronics. People’s entire careers depend on their electronics, now. It can seem impossible to live a fulfilling life without a working phone or computer.
That’s because electronics are how people interact with the world around them, now. It’s what people use to talk to others, listen to music, and so much more! That means the best time to buy electronics isn’t when old devices fall in price. You’ll need to spend more money to upgrade them later, anyway.
Instead, the best time to buy electronics is when new devices have a lower price than they normally do. And new devices do more than save you money in the long run. Keep reading here to learn about the benefits new devices will have for your style and personal brand!