Price Wars - Cheap Electronics

Consumer electronics companies are continuously embracing the trend of convergence when it comes to manufacturing products. A cellular phone is no longer restricted to making calls and sending text messages, it can capture videos, play music files, and access the Internet, among other things. Manufacturers are aware of the need to constantly upgrade and update their products. To some extent, the latest version this month becomes somewhat obsolete the next. Aside from battling in terms of features, manufacturers are warring in terms of prices. As companies gain efficiencies and use automation in production, they are able to cut on labour costs. Hence, developing new models becomes a lot easier and faster. Older versions, which are not really very old but merely months old, become too suddenly replaced by new ones. They lose public appeal, thereby experiencing weaker demand that results in lower prices. Price and feature wars are favourable to consumers because they cause manufacturers to better their products and to lower their prices. Hence, consumers get cheaper yet finer consumer electronics.