If you were standing in a store and trying to decide between a 4K projector and a 1080p projector, which would you prefer?
Which would you end up buying?
The answer totally depends on how much you can afford to spend on a projector!
4K projectors offer some of the most coveted features for good projection. If it were easy to, everyone would choose to purchase them instead.
However, cost is a major influence when trying to choose between projectors. People can only purchase projectors that are within their means.
The prices of 4K projectors are in a 3 to 5 figure range. Why’s this? Well, they offer more features than projectors of lower resolutions.
This and other reasons are why 4K projectors are so expensive. However, they won’t remain so for very long!
According to BusinessInsider, the U.S Bureau of Labor Statistics says that in the past 18 years, there has been a dramatic fall in the prices of tech.
4K projectors have been in the market since 2012 or so. Their prices have gone from above 5-figure to an average of 4-figure.
People are asking, ‘when will 4K projectors become affordable for the average user?’ This article will explain what there is to expect. Read on.
What Factors Will Cause 4K Projectors To Become Affordable?
Generally, it’s a norm for prices of new technology to fall after some time has passed. This is especially true for electronics like TVs, computers, projectors and others.
When they’re initially released, these electronics tend to be very expensive. Give it some time. In a couple of months, there is always a marked reduction in their prices.
For instance, the first color TV sold for nearly 5-figure. It was 1954 and the screen measured about 15″. Today, a 65″ 4K TV costs about 3-figure.
Are you wondering why this is?
A drop in the price of technology is influenced by a number of factors:
- Increase in technological advancements
- Cessation of price skimming
- Reduction in production cost
- Increased competition
1. Increase in technological advancements
Technology is advancing and becoming readily accessible. For this reason, its benefits are no longer as exclusive or expensive as they used to be.
Moore’s law observed the doubling of transistors in integrated circuits every two years. This has forged the path to the microchip of today. Microchips increase computing strength and reduce cost.
2. Cessation of price skimming
Price skimming is a targeted activity carried out by companies. It occurs especially when companies offer a limited service or product.
At the initial release, customers are few but distinctive. Some of the earliest purchases on a product are made by critics, collectors and people in desperate need of that product.
These groups of people will pay a steep price to get what they want. So, the companies set a high price for their goods.
When the interest of the general public is piqued, the prices are reduced. This makes the product affordable for more people.
3. Reduction in production cost
When new products are released into the market, sales may start off slowly. For this reason, firms produce on a small scale. This makes the cost of production high in relation to the quantity produced.
However, as it gains more exposure, there is an increase in demand. This causes a marked increase in the economics of scale.
You know how doing things on a large scale saves you some money? Or how the cost of production can be easily realized from the sale of the many items you made?
That’s exactly how it works with electronics. If the relative production cost decreases, the market prices of the electronics can reduce.
4. Increased competition
It is only natural for entrepreneurs and investors to invade a thriving market.
As soon as the demand for a particular electronic increases, competition arises. Other firms enter the market with their brands to establish an identity.
The results of competition include a rise in quality or features of the product and a reduction in price.
Nothing entices the average consumer as surely as good features at an affordable price.
What Contributes To Production Cost?
At different points in this article, we’ve come across the phrase ‘cost of production.’ This is a major reason for the high prices of 4K projectors.
It would be wise to find out what truly contributes to it. The knowledge will help us take a guess at how soon projectors would become affordable.
- Prices and Quality of Components:
From aluminum to rubber and hard plastics, raw materials for projectors come in different grades. Parameters like tolerability and durability are considered too.
The manufacturer’s choice of quality can increase or reduce production cost.
The projector hardware plays a role in cost; the type used, and the features they offer. 4K projectors are made for superior viewing.
They are better than some of the best outdoor projectors.
Labor makes up 30% of production cost. In our world today, a good amount of labor is robotized. This saves time as well as money.
However, a lot of human labor is still contracted for production of electronics. Human workers still supervise mechanized tasks. They are delivery men and customer service agents.
It costs a pretty penny to pay these workers’ wages. This adds up to production cost.
The type of packaging for a projector contributes to its cost. Packaging options include paperboard boxes, plastic, and corrugated boxes.
Cumulating these factors can cause manufacturers to set high prices for their goods. This is so that they can recover the money they spent.
4K projectors will become affordable, and soon. All indicators point to that. A rise in technology and competition; a drop in production cost; these factors are inevitable.
There is only one reason why the prices of 4K projectors may remain inelastic. Adopting higher technologies and increasing function.
This is what happens with the Apple iPhones. Newer models are more expensive because they’re upgrades from the previous ones. They’re not built to be more affordable, but to be more effective.
Our conclusion is this: it took 4K projectors about 8 years to get to their current price range. It’ll take way less until they are affordable to the general public.