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HomeLifestyleWhy is the "computer price" falling?

Why is the “computer price” falling?

Despite increasing demand of Computer Price

Computer Price are now the primary source of connectivity for people. Computers are the main source of connectivity for most work, including college assignments, teaching lessons, and presentations. Computers or information technology have enabled humans to quickly solve almost any problem by allowing them to communicate via long distance. (http://en.wikipedia.org/wiki/Personal_computer)

A personal computer (PC), is any general-purpose computer that has the size, capabilities, or original price to make it useful for individuals. It is designed to be used directly by an individual, without any assistance from a computer operator.

Personal computers Software applications include word processors, spreadsheets, databases and Web browsers. Email clients and games Computer Price are also available. There are many other personal productivity and special-purpose programs. Personal computers today often have dial-up or high-speed Internet connections, which allow access to the World Wide Web as well as a variety of other resources.

The demand for a product and the supply in the market will determine its price. The economic model of price determination in a market is Supply and Demand. This concludes that price in a competitive marketplace will equalize the quantity of consumers and the quantity of producers. This creates an economic equilibrium between price and quantity.

Computer Price market is a market where the demand for computer products keeps increasing while the supply of the product is increasing. The law of supply and demand states that when there is more demand, there is a rise in the price. In this particular market for computers, however, there is a growing demand but a gradual decline in the price. This is the subject of my assignment. I will discuss the reasons for this behavior in this piece. http://www.channelweb.co.uk/crn/news/2258012/uk-business-pc-market-decline

This assignment will discuss and analyze the following topics.

Explain why personal computers have continued to be less expensive despite increasing demand.

Conclusion of Computer Price

Background – Computer Market

In 2008, the UK personal computer market was valued at 12.81 billion at end-user price. This is an increase of 4.2% compared to 2007 and its highest output level since 2000. It led to a drop of 8.2% in sales to 11.77bn in 2009 due to the recession.

Personal computers (PCs), which experienced a greater annual growth between 2005 and 2008, saw a decline in total value sales for peripherals and add-ons. It was a result that the overall growth rate for this period was 3.3%.

The consumer market’s improved performance over the last year is due to the increased sales of net books and portables. Net book sales are still being driven by mobile computing. Desktop computers are less appealing and in decline. However, more portables are being sold than desktop computers.

Manufacturers expect a rebound in sales for 2010 and a full recovery by 2011.

Gartner’s principal analyst Ranjit Awal stated that the UK computer market experienced growth in Q4 this year. He said that 70% of the UK’s total PC market is now heavily dependent upon mobile PCs.

The UK market share

With 19.1 percent market share in the UK, Acer retained the top spot. HP was second with 18.9 percent. With 16.5 percent, Dell was followed by Toshiba with 10.4 percent and Samsung with 6.5 percent.

He also stated that the UK’s total market in terms of shipments was 3.8million units. Acer held 23.1% of the market in Western Europe. With 21.3 percent, HP came in second place. Dell came in third with 9.9%. Asus and Toshiba occupied fourth and fifth with 8% and 6.2% market share, respectively.

The top five Western European vendors are under pressure due to the’significant’ growth in vendors like Apple, Samsung and Lenovo. Research shows that the UK’s computer market continues to struggle in 2009, as its western counterparts recover from recession.

According to market watcher IDC, UK personal computer shipment fell 1.7% annually to 3.8million in Q4. The notebook market grew by 2.3 percent to 2.9million units, while the desktop market fell 12.8 percent to 878,000 units.

Emerging markets collapsed during the crisis, but they now have double-digit growth.

We also observed that although the demand for computers is increasing in numbers every day, the price of computers is falling slowly. This is contrary to the theory of Demand and Supply. We must therefore examine the real triggers of such a situation.

Explain why personal computers have continued to be less expensive despite increasing demand.

We know that personal computer prices have continued to drop despite increasing demand in this market. This is contrary to the law of supply and demand. This is mainly due to increased efficiency and competition.

This means that price remains constant or decreases and any change in other determinants causes supply or demand to rise. This causes shifts in demand and supply curves depending on the situation. Other factors may also be important.

We will now examine the demand side of the computer market.

The computer market is experiencing a significant increase in demand every day, mainly due to these reasons.

The price of the product

Substitutes are: There is no better substitute for the computer in today’s modern world. High-tech mobile phones are being used to perform most computer-related tasks, such as sending and receiving emails. It is still not an alternative. The demand for it is increasing and the demand curve shifts to the right, which increases the price. See the diagram below.

Complements: The price of complements is also dropping compared to recent decades. A company’s strategic interest will be to keep their complements’ prices as low as possible. The “commodity” price is the lowest viable price. ThisĀ  Computer Price arises when there are many competitors selling indistinguishable products. To capture the market, smart companies will try to lower its complimentary prices.

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