11
Price
11.1 PRICE OF CONSUMER ELECTRONICS PRODUCTS ALWAYS DROPS
This is almost like the law of gravity. The price of every consumer electronics item goes down. Consider computers. Siva computers crashed the price of early personal computers (PCs) by more than twothird1. Price is so important in PCs, that apart from Chinese companies that have built scale, others may not sustain. Even IBM sold out of their PC business.2 HP under Leo Apotheker was also considering spinning off the PC business. PC is the highest revenue earner for HP, though it makes the lowest profits.3 In late 2014 HP has finally announced the intention to spin off its hardware business as HP Inc. Prices in other consumer electronics items seem to follow the same pattern. For ...
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