why is new technology CHEAPER than old????

danlightbulb · 7 Aug 2006 at 16:35

Hi all

I'm confused.

Have been looking around the OCUK shopping recently and I'm amazed that the older technology DDR (specifically the Geil Value 1Gb dual channel kit) is MORE EXPENSIVE than the newer geil DDR2 1Gb dual channel kit, by nearly £20.

Also, I can't believe the prices of the LGA775 pentiums. A 2.8Ghz dual core presler for a shade under £100!! The socket 478 Pentiums were £130 for a 3Ghz chip!

What the hell is going on when new technology is substantially cheaper than the old? If I could upgrade then i could get some bargins but to do so would need me to upgrade motherboard, hdd & graphics card so not worth the new technology just yet.

I was hoping to pick up some bargains on the old technology but its just not happening.

Regards

ots3go · 7 Aug 2006 at 16:41

I'd assume they're either cheaper to produce or the old products are no longer in production, so harder to get ya hands on, so more expensive?

danlightbulb · 7 Aug 2006 at 17:03

cd discs are cheaper to produce than cassette tapes, yet when they came out they were more expensive.

DVDs are cheaper than video's, same thing happened.

And they are still making DDR, its not obsolete yet!

It all means that the value consious PC user can't wait till old technology drops in price to upgrade because its not happening.

Electronic Dave · 7 Aug 2006 at 18:44

I think its to do with supply and demand which push prices up or down...what with Conroe and AM2 the emphasis shifts to producing large quanities of DDR2 memory...the last time I heard DDR was still outselling DDR2 by 15:10 that'll change later this year

Minstadave · 7 Aug 2006 at 19:05

Plus the RAM market is hugely competitive, just look at number of producers of RAM out there, compared to the AMD/Intel or ATI/NVidia competition.

kitten · 7 Aug 2006 at 22:53

There is a constant drive in the manufacturing industry to reduce costs, it is even budgeted for. Companies are building plants in regions where the cost of labour is very low. Planning methods improve with the technology that drives them. Design and manufacturing methods/tools improve with as the technology improves. A kind of feed back loop... next years minature technological wonder will be cheaper to make than this years minature technological wonder. Or will do much more for near the same price. Some areas of technology are extremely competetive. Not everyone is happy just earning a living and co-existing with the competition :rolleyes:

So the aggressive pricing strategies come in to play. Then we as consumers benefit from this. I for one, have no problem with capitalists trying to put each other out of business

As production of old technology is ramped down to meet dwindling demand there is no economics of quantity, so prices remain pretty much at the lowest price that they got when production was economicly viable.

Just some thoughts