Arslan Butt
In some countries, inflation was higher in 2022 than in decades. For instance, the Central Bank of England expects inflation to reach 13% by the end of the year, the worst reading in England since 1980. Given the current Russia-Ukraine conflict and the COVID-19 pandemic, inflation was bound to rise as supply chain disruptions and stimulus checks created favorable conditions for its exponential growth.
Everyone expects their weekly grocery and gas bills to rise over time, but few expect rising inflation to affect the prices of tech gadgets. It has, however. During the peak of the Covid19 pandemic, governments distributed stimulus checks to help their struggling economies.
This, combined with supply line disruptions, has resulted in a market discrepancy between demand and supply. Suppliers have raised the prices of their products to reduce demand and compensate for increased production costs; tech gadgets were not spared.
Old Tech Gadgets Are No Longer Affordable
Unlike in the pre-inflationary period, older model prices have remained stable. For instance, Apple’s November 2020 MacBook Air costs roughly the same as it did two years ago. This is unusual for Apple products because new releases (the M2 MacBook Air was announced in June) usually result in price reductions for older models; however, high inflation rates have put an end to that.
Other companies, such as Sonos, have taken a different approach and raised the prices of their older products. By the end of 2022, the price of Sonos’ entire line of wireless speakers will have risen. If that wasn’t enough, it was also reported that it was more difficult to find discounts on used and refurbished tech products online.
Until recently, consumers had the luxury of finding fantastic deals at Best Buy. However, Best Buy’s stock of low-cost electronics has been depleted due to current circumstances. Due to high inflation, many people may rely on third-party marketplaces such as eBay to find a good deal.
Samsung Unveiled New Wearable Tech and Phones
More obvious effects of inflation can be seen in the new wearable tech and folding phones that Samsung just unveiled. However, the new Galaxy Watch 5 is $30 more expensive than the Galaxy Watch 4, despite only including a little larger battery and one (debatably helpful) extra health sensor.
At the same time, the Galaxy Z Fold 4 and Z Flip 4 remain at the same costs as their predecessors. It’s essentially the same watch as the Galaxy Watch 4, although it cost more than the Watch 4 when it was first released last year. The new Galaxy Buds 2 Pro costs $229, which is $30 higher than the original Galaxy Buds Pro did when it was released in January 2021.
New Tech Launches to be Accompanied by All-Time High Prices
As the season of new tech products approaches, expect everything from laptops to smartphones to be significantly more expensive than their older counterparts. Apple’s new iPhone 14 will be available in September. Numerous rumors have claimed that the new iPhone 14 will cost at least $100 more than the iPhone 13 model.
Considering current trends, it is also unlikely that the market price of the iPhone 13 will be reduced. In the aftermath of inflationary pressure, all technological devices sell at exorbitant prices. It’s best to hold off on purchasing new technology until your country’s official inflation rate falls.
Amazon Joins the Price-Going Bandwagon
It has been reported that Amazon may increase seller fees this fall to combat inflation. As a result, you should expect to pay extra for your next USB-C cable or phone case. As a society, we have been accustomed to seeing technological expenditures decrease over successive decades, and this trend has not abated. We can’t assume that technology will remain insulated from the rest of the economy forever; if the price of a loaf of bread rises, it’s safe to assume that a new smartphone will do the same.
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This article was written for Business 2 Community by Arslan Butt.
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