The world is changing too fast. From day to day, technology is showing its capability in changing our living style and behavior. Hi-Tech devices helping us to see the world in different way, helps to communicate with each other with ease and helping us do business with just a few taps.
But beside of all those pros, hi-tech devices also the “money burner”. Why? Here are some reasons:
- Hi-tech – Hi-price: New hi-tech devices always comes with high price. For example, iPhone 6 that Apple had just introduced, many phone shops in Cambodia sold it with very high price, but just after a few months, the price dropped down to almost standard. This marketing method can help those shop owners earn huge amount of money with just a second.
- Short life cycle: Once a new product introduce to the market, many people are trying to get one for themselves, but they almost forgot that every product has its own life cycle, and those cycle is just one year. Once the next generation product introduce, the old generation will drop the price and they will lose huge amount of money if they’re willing to change for the new generation product. For example, Sony Mobile committed that they will introduce new product in every 6 months. That’s the best way for those companies to earn money and also the best way for you to burn your money as well.
- Add-on features: Newer generation products will be improve in terms of quality and features, but those little added features will burn huge amount of your money while the current one that you’re owning is enough to help you do your business very well. Add-on features are just like a gasoline to boost the speed of a vehicle.
- Accessories: To increase the revenue of the company, some hi-tech companies develop separate accessories, so called “genuine accessories”. This is the way to earn more money. To get the maximum productivity of device, you need to pay more on some important accessories, for example, if you want to get the full strength of nVidia Shield Tablet, you need to pay $60 for WiFi Controller and $50 for Cover. There are a lot of companies that doing their business in this way such as Apple, Dell, Microsoft… etc.
Once new product introduce, people are willing to get one without thinking of Price, Cost, Life cycle and Productivity.