Electrical component costs

Description:

Many simple or complex electrical components are needed to produce the vast amount of technical hardware required on a daily basis. The market cost of these components drops quite rapidly as demand increases, adhering to normal economic laws. Components can be built using less resources over time as efficiency is improved, hence reducing costs further. As costs reduce for components, naturally the cost of devices using the components fall. As prices drop for a component, it allows developers to use more advanced versions of components to further increase the functionality of a device. In time these more advanced components follow the same trend as their predecessors. This progression goes on endlessly and is critical to the development of all electronic devices. As mentioned in the research for the scenario set "The Future of Privacy in 2015", mobile phones are one example of integrated electrical components as they not only need components for telecommunication, but now also for imaging and entertainment. Diversification of components in a single device becomes a lesser problem as total component costs decrease. Functionality can be added to devices as the price for the needed components becomes acceptable in the eyes of the developer.

Enablers:

1. Exchange rates
2. Shipping costs from China, Taiwan, Thailand
3. Research and development progression in electronic component companies
4. Market demand for integrated devices
5. Business-to-business demand for components
6. Raw material costs