As technology advances, electronic commodities have a tendency to become more affordable the longer they’ve been around. But sometimes there are odd quirks to the price trends over the years with certain electronics.
With TVs, there’s an unusual era where TVs became more expensive than they have ever been more than 70 years after their creation. From the year 2000 to 2019: Televisions had an average inflation rate of -16.29% per year. Simply put, TVs costing $300 in the year 2000 would cost $10.23 in 2019 for an equivalent purchase.
So does that mean that TVs are cheaper now than they’ve ever been?
According to the data, yes, TVs are much cheaper now than they were in the past especially when you factor in the price per square inch or PPSI of TVs today. There are a few reasons why TVs are so much bigger and more affordable in 2019:
Automation: With the level of factory automation that goes into building TVs, companies are spending much less on labor than they have in the past. Before factories were able to automate this process, many of the components that went into TVs were soldered by hand. That made the process take longer, cost more, and created a product more prone to errors.
Less is more: Today, TVs use fewer components than they did in the past. The interior structure of a television today is compact, efficient, streamlined, and organized. Not only do fewer components save money from a quantity perspective but that also means that less is spent on sourcing components from around the world.
Time: TVs in 2019 are made much faster than they have been in the past. With the automated process today, TVs are made quickly and precisely usually passing all necessary tests and out the door in record time. That also means that companies are able to get them on the shelves promptly without losing any margin due to a decrease in demand or value.
Thanks to these improvements, we can now get TVs that are bigger and more affordable than ever! Welcome to the future, it’s a great place to watch TV.
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