With the prices of gadgets dropping down, there has been an increase in the total demand and thus the sales. Cellular phones, camcorders, GPS devices and MP3 music players are just some of these gadgets. The price of gadgets is high and dramatically drops after a few months from release. There are both advantages and disadvantages of this price decrease. Advantage is people get to afford this stuff only after a few months from release hoping to get them at cheaper prices.

The disadvantage of this price decrease is that the gadgets and gizmos that people buy depreciate in a stunning speed. I’ve seen a cellular phone reducing 30% of its price only after three months of official release in the market. Technology manufacturers seem not to be minding this price drop at all. Though there’s an inventory stock up going on, they have derived better income with the increase in the volume of sales. The retailers are actually the people who are most affected by this high speed price drop because they are the one who keeps the inventory.