Stifling competition has resulted in laptop producers trying to provide their customers in India with as many specifications as possible, while attaching a convenient price tag to it. For the features that laptops nowadays come with, it is truly remarkable to see a cheap price tag attached to it, especially during sale time. Below, we elucidate the reasons behind this baffling situation.
1. Coronavirus 2019 and its Repercussions
With the augmenting work and study from home situation, every Indian citizen’s dependence on technology has increased. As more producers have begun integrating their laptops with better webcams and listening devices for students, other features such as overall speed and storage in laptops have been deemed essential for immediate improvement. However, with the financial instability surrounding Indian households, consumers have started embracing ‘affordable’ laptops to take care of their basic everyday technological needs.
2. Keeping up with Progressing Times and their associated Price Ranges
The progress in technological innovation has resulted in the building of laptops with advanced features at a more convenient rate. In the early 2000s, PCs that would cost Rs. 40,000 at today’s rate were equipped with very primitive features. Lock-in costs were quite potent two decades ago. A lot of additional expenditure was necessary to improve the basic features of a laptop. However, now, for a cost of only Rs. 30,000, you can get a laptop that is futuristic and ahead of its time, in terms of the specifications it has to offer.
3. Economies of Scale
When new gadgets are generally produced, there is a lot of scepticism surrounding the features it can offer, and whether it can live up to the market campaigning claims it professes. During this period, sales are generally low, and investment costs are usually high. As the market for these products begin to enlarge, production surges, and the average cost of the product tends to fall, as there are lesser restrictions on its unit sales. The introduction of several new laptop models in 2020, in turn, led to the reduction in their rates, and as more laptop producers dropped their prices due to the widespread turbulent economic scenario unfolding, other laptop producers further drove down their costs as well.
4. Price Skimming
In an inelastic demand landscape, some corporations tend to release gadgets with very high prices to grasp the attention of consumers. Consumers, accordingly, begin speculating whether there is too much hype surrounding the pertinent laptop, and in turn, build more awareness of the product. As more customers gather to purchase a laptop, prices are then slowly dropped to make it more affordable for large sections of the population. Although this is not the direct reasoning behind the affordability of a laptop, and how laptop rates have lowered over time, it has indirectly contributed to more producers reducing the prices of the laptops they sell over time.
5. Stiffening Competition
Many consumers have noticed that there is a tendency to have a subtle price war amongst laptop producers in India. Lower prices attract a large number of customers in India, and taking this into account, certain OEMs have the tendency to sell their laptops at more affordable rates to gain an edge over their competitors.
6. Technological Innovation
Advanced technology has reduced the burden of producing several laptop components, which has further contributed to the overall lower price tag associated with various laptop devices in India. Internal components that ensure the smooth running of a laptop were earlier individually produced, but now, because of technological innovation, it is easier to build their parts faster and with greater effectiveness. Moreover, some companies outsource this work to other countries, which lowers their overall cost, and also ensures that laptop prices are a lot cheaper.
7. The ‘Lenovo IdeaPad’ Effect
The Lenovo IdeaPad 330 is known for its affordable price tag, and is a prime example for the reasoning behind companies attaching more affordable price tags to the gadgets they sell. With the 8th Gen Intel® Core™ i7 processor, the Lenovo IdeaPad provides customers with modern features at a very low price. Further, the 6-hour battery life and rapid recharge provision makes it one of the best laptops currently being sold, according to some consumer reviews. The reason behind its affordability is because of all the above-mentioned reasons.
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