A crash course in economics will teach you that once a product is in high demand, the cost of the product generally drops. In today's economy, this is not always the case. Here is a look at five products that should be getting cheaper, but for various reasons are not.

SEE: Introduction To Supply And Demand

Apple Products
If you are one of the consumers that is waiting for Apple to reduce its prices don't hold your breath. While Apple products are overwhelmingly high in demand, their competition doesn't hold a candle to the popularity of Apple. Apple is able to price its products as it wishes without major backlash or repercussions due to the company's tremendous popularity in the market. Even though Apple products are expensive, they are very reliable and usually last for a long time. They also have fairly high resale values, so if you upgrade you may be able to get a decent price for your old MacBook or iPhone.

Professional Grade Computers
You'll be hard-pressed to find someone that does not own a computer. Whether it is a laptop or desktop, professional grade computers are still relatively costly. While professional grade computers are high in demand, the technology keeps evolving which is the reason why these computers are not getting any cheaper.

Video Games
Another product that seems to be getting more and more expensive, rather than cheaper, is video games. Games for Xbox 360 and PlayStation 3 (PS3) both have a price that averages around $60 each. Nintendo Wii games are slightly cheaper and on average are priced between $40 and $50. Additionally, in an interview with Eurogamer, THQ said, video games may cost around $100 each on the next gaming system. The next generation consoles are expected to increase graphic performance and over all power, which means developers will need more resources to product these video games. The increased need for resources will in turn increase the cost of video games in general. Next generation consoles are also rumored to have restrictions which will prevent used games from being used on the systems. This may make gaming on the next generation Microsoft and Sony machines even more expensive. The reason for the hike is because of the advancing technology. Video games have come a long way since the days of the original Nintendo, and the price certainly reflects this.

Cell Phones
Walk down a busy street on any given day, and you're bound to see an overwhelming array of cell phones. Some are standard cellular phones that can be used for talk and text, while others are essentially mini computers that you can talk, text, surf the Internet and compute on. The reason many cell phones are not dropping in price is due to the evolving technology. Many cell phone carriers allow you to trade in your phone for a new one every two years. What is the point in reducing prices if you can make a larger profit by keeping sales the same or higher? As long as cell phone technology keeps evolving, expect the prices to stay high.

Blu-Ray Players
When Blu-Ray players first came out on the market, many consumers believed that this technology would replace the DVD. As of 2012, this vision has not come to fruition. Although the Blu-Ray technology is popular, it did not catch on as well as expected. If popularity increases, expect the price of Blu-Ray players to drop, but until then, prices will likely remain the same. However, there have been price decreases in some blu-ray players. In general they are still more expensive than DVD players and have not made DVD players obsolete as of yet. Because of the PS3's ability to play blu-rays, some people are using the game console as a blu-ray player with the added benefit of being able to play video games for $100 more than the price of a cheaper blu-ray player.

The Bottom Line
Due to technology constantly evolving and demand increasing, many products on the market are maintaining their prices rather than dropping. Although high demand usually causes prices to drop, the evolving technology component is what keeps the prices steady.

Related Articles
  1. Personal Finance

    How Tech Can Help with 3 Behavioral Finance Biases

    Even if you’re a finance or statistics expert, you’re not immune to common decision-making mistakes that can negatively impact your finances.
  2. Entrepreneurship

    How an Internet Sales Tax Will Affect Your Small Business

    Learn about how the Marketplace Fairness Act may impact small business owners should it pass in the House and what the act requires from business owners.
  3. Savings

    Craft Beer Clubs – Bargain or Not?

    If you're an aficionado of artisanal brews (or would like to be), a beer club can be a palate-pleasing, albeit pricey, way to expand your hops horizon.
  4. Stock Analysis

    When Will Dick's Sporting Goods Bounce Back? (DKS)

    Is DKS a bargain here?
  5. Savings

    These 10 Habits Will Help You Reach Financial Freedom

    Learn 10 key habits for achieving financial freedom, including smart budgeting, staying abreast of new tax deductions and the importance of proper maintenance.
  6. Stock Analysis

    Has Urban Outfitters Lost its Way? (URBN)

    Urban Outfitters just made a bold move. Will it pay off?
  7. Stock Analysis

    Is Walmart's Rally Sustainable? (WMT)

    Walmart is enjoying a short-term rally. Is it sustainable? Is Amazon still a better bet?
  8. Savings

    Are Wine Clubs Worth It?

    Some points to consider, before committing to a membership for yourself – or as a gift. The right club can also help you save money over the holidays.
  9. Budgeting

    How Much Will it Cost to Become President In 2016?

    The 2016 race to the White House will largely be determined by who can spend the most money. Here is a look at how much it will cost to win the presidency.
  10. Stock Analysis

    Kohl's: Should You Stock Up or Sell? (KSS)

    Many traders are bearish on Kohl's, but long-term investors might want to take a closer look for this simple reason.
  1. Where can you buy NetSpend reload packs?

    You can only purchase NetSpend reload packs at Giant Eagle, Albertsons, Roundy's and Pathmark supermarkets. NetSpend cards ... Read Full Answer >>
  2. What does marginal utility tell us about consumer choice?

    In microeconomics, utility represents a way to relate the amount of goods consumed to the amount of happiness or satisfaction ... Read Full Answer >>
  3. How does a bank determine what my discretionary income is when making a loan decision?

    Discretionary income is the money left over from your gross income each month after taking out taxes and paying for necessities. ... Read Full Answer >>
  4. What are some common ways product differentiation is achieved?

    There are many ways to achieve product differentiation, some more common than others. Horizontal Differentiation Horizontal ... Read Full Answer >>
  5. What role does the OEM (original equipment manufacturer) play in the finished product?

    Original equipment manufacturers (OEMs) do not typically play much of direct role in determining the finished product. However, ... Read Full Answer >>
  6. What is the difference between an OEM (original equipment manufacturer) and a VAR ...

    An original equipment manufacturer (OEM) is a company that manufactures a basic product or a component product, such as a ... Read Full Answer >>

You May Also Like

Trading Center