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:
- Exchange rates
- Shipping costs from China, Taiwan, Thailand
- Research and development progression in electronic component companies
- Market demand for integrated devices
- Business-to-business demand for components
- Raw material costs
Inhibitors:
- Raw material costs
- Economic recession
- Import taxing increasing
- Labor issues in high-output production countries
- Market move from industry to service oriented
Paradigms:
Old: Components is the business of choice!
New: Using components correctly, inefficiently, and effectively is the business of choice!
Electronic components are considered 'staple' materials. They are perceived to be perpetually available and function as an enabler for bigger devices. Producing components is a huge money-making business, but using the components is even bigger.
Experts:
The many developers of integrated circuits, transistors, actuators, transducers, and other basic electronic components. Too many to list.
Timing:
Just some crucial dates
- 1947 First pointcontact transistor
- 1958-1959 Integrated circuit invented