There are two main reasons.
The main reason is that more and more computers are being made; the quantity is going up. As more computer components are made, the costs of manufacturing go down, and the costs of research and development can be spread across a greater quantity of products. For example, if it cost $1000 to develop a product and only 5 of those product sold, the cost per product would be $200. If 20 of those products sold, the cost per product would only be $50.
The second reason is that things are being built to a poorer quality than they were 10 years ago. If a company can decrease the price of a computer, they will, even if it affects the quality of the computer.
Suppy is high, while demand is low; perhaps due to the state of the economy.
Reducing prices
As one looks at contribution margin (effectively a product's/service's financial contribution to the organization before overheads and other company-based costs), there are two things that can be done for improvement: * Cutting costs (e.g., reducing costs of production, reducing scrap loss, increasing production efficiency, automation, etc.) * Increasing sales (e.g., raising prices, increasing demand, expanding market area, etc.)
It can be one of the causes: Due to Middle East uprisings and unrest, the supply of natural gas has been disrupted, reducing the supply and thus, increasing the price.
An economy that experiences decreasing real GDP and increasing prices suffering from stagflation.
to raise prices by reducing competition.
It is not always increasing.
economy
Real estate prices are increasing in North Miami, Loxahatchee, Brandon, Palmetto and Lady Lake. Prices are doing less well in Tavares, Palatka an North Fort Myers.
increasing taxes on oil
Tthe economy is crashing!
In the U.S. it's not that much but prices are increasing.