BBC: Electronic goods costs 'may rise'

piggeh

HP put their prices up recently by around 40% or so recently. Is this because of these trading conditions (exchange rates), or simply because companies use these conditions as an opportunity to increase pricing? We see it every time there is an inflationary pressure (even if raw materials have dived in cost) - companies only too willing to find an excuse to put prices up but not willing to drop them on a downturn.

Really it doesn't matter what REAL effect these exchange rates have, it's only perception of effect and companies thriving on the opportunity to increase profits as a result half the time.

michaels

There seem to be two factors acting in opposite directions:
Falling demand suggests that companies will cut prices to gain custom
However the falling exchange rate means that foreign companies are suffering a huge price drop if they keep sterling prices unchanged.

There must come a tipping point where suppliers can not chase volumes and sell at a profit and then they may decide they will put up prices to the point where each sale is profitable even if that hits their volumes.

So far products like TVs have been discussed and I am sure most of us can make do with our old CRT if the worse comes to the worse...but there are other products we import, notably food which we can't do without. For these we will just have to pay the higher price and spend even less on everything else.

Only good effect may be where multinationals make products in the UK - for example the labour to produce a car in the UK is now relatively cheaper than in Europe or Japan.

dad-of-4

socrates wrote: »

I do not know about rising in the future. They have BEEN rising for the last year anyway.

I was looking for a few electrical items the other day using Kelkoo, Amazon, EBay etc.

I also came across a site that tracks the price of a particular item over the last 12 months. I wish I could remember which one. I am sure someone will set me straight on which site it actually is.

The item was now £170 it has been as low as £120 nine months ago - and that was not the only example.

Now more than ever people need to shop around, there are bargains out there and we have the tools at our fingertips.

or maybe now more than ever people need to get back to a mend & makedoo attitude. why should anyone feel threatened by the jap corps telling us prices are going up? they don't actually make anything we "need", and any of the tings we really need, we no doubt already own.

dad-of-4

michaels wrote: »

Only good effect may be where multinationals make products in the UK - for example the labour to produce a car in the UK is now relatively cheaper than in Europe or Japan.

is that true? i didnt know that, very intesting indeed.

mewbie_2

dad-of-4 wrote: »

why should anyone feel threatened by the jap corps telling us prices are going up? they don't actually make anything we "need...

I dread to think what the UK version of an iPhone for example would look like. I'm thinking about the size of a Bush transistor radio c. 1970. And it would cost ten grand.

Rochdale_Pioneers

mewbie wrote: »

I dread to think what the UK version of an iPhone for example would look like. I'm thinking about the size of a Bush transistor radio c. 1970. And it would cost ten grand.

Well compare the iPhone to a device that is actually useful and it IS like looking at a Bush radio!

Remember that the iPhone is all things to all men. Unless you want a camera on it cos its poor. Or want to access the tinterweb cos half of it won't work. Or want to install software cos its banned. Or switch networks cos they'll brick it. But it looks coooool so people pay £100 then £40 a month for one.

Snooze

!!!!!!? wrote: »

http://news.bbc.co.uk/1/hi/business/7848591.stm

Consumers are being warned that the prices of electronics goods made in Japan are likely to rise, because of the strength of the yen. Japanese electronics firms say the strength of their currency is putting their profits under pressure.
Sony has warned it will make a record loss this year.
And camera and printer maker Canon has already acted by increasing its prices across Europe by about 5%, and as much as 10% in the UK
As expected and predicted.

And it won't just be electronic goods, they're just one of the most obvious items with a sharp increase because of the particular strength of the Yen. There will be plenty of prices creeping up across most imported goods due to the collapse of the pound against almost everything.

Meanwhile, the overall money supply will continue to shrink due to restricted bank lending meaning much less bank credit in circulation. The government doesn't seem to realise that making things more expensive does not equal 'fighting deflation'. With costs of living squeezed, people aren't likely to have so much to save and many are already pretty far in debt so any excess goes to paying that down.

It's certainly a great way to destroy living standards and squeeze those on the breadline to the point of breaking though. Of course, this will all be used to justify the 'need' to print money.

I guess I'll just have to do without a plasma in the bathroom then and just make do with having one in each of the 4 bedrooms, kitchen and lounge instead.

Rob

mewbie_2

Rochdale_Pioneers wrote: »

Well compare the iPhone to a device that is actually useful and it IS like looking at a Bush radio!

I was using the iPhone as an example, really any funky little electronic product - what was the last thing the UK produced? Was it the Sinclair C5?

Walletwatch

!!!!!!? wrote: »

I look forward to Gordon telling us soon that RPI is a more useful indicator in light of the global economic crisis which started in America.....

The spineless b*st*rds might actually end up doing it, now that house prices are going down, and it is convenient to have it as part of the agreed inflation figure. Another U-turn for the establishment !!!

Generali

Rochdale_Pioneers wrote: »

Well compare the iPhone to a device that is actually useful and it IS like looking at a Bush radio!

Remember that the iPhone is all things to all men. Unless you want a camera on it cos its poor. Or want to access the tinterweb cos half of it won't work. Or want to install software cos its banned. Or switch networks cos they'll brick it. But it looks coooool so people pay £100 then £40 a month for one.

£580/year for a phone. Waay cool.