Kiwis have seen ‘significant price increases’ on popular tech products over the past 5 years – research
PriceSpy research compared the average price of the most popular products between January 1 and March 28, 2017 to the most popular products between January 1 and March 28, 2022.
Matinvesi-Bassett said many factors impacted the cost, including the COVID-19 pandemic.
“The cost of manufacturing has increased as businesses continue to be hit hard by staff illnesses, supply chain issues, inventory and component shortages, increased consumer demand and the increased shipping costs,” she said.
The high inflation rate in Aotearoa is also likely to play a role.
“Business margins are squeezed and essentially price increases are passed on to consumers,” she said.
Product innovation and technological advancements could also have an impact, such as the addition of 5G functionality for mobile phones, another product that has seen a massive increase.
In 2017, the average price among the most popular mobiles was $528; now it’s $947, a jump of 79%.
“Essentially, the more functionality a product offers, coupled with better technology and functionality, the more it costs to manufacture and the more a consumer can expect to pay.”
However, it’s not all bad news, Matinvesi-Bassett said, with some price cuts offering welcome relief to consumers.
The research found that the average price of the most popular headphones seemed to be dropping. In 2017, the average price was $454, while it is now $411, which is 9% lower.
“With so many factors affecting the price of goods right now, doing some forward pricing research couldn’t be more important,” Matinvesi-Bassett concluded.
Key Findings from PriceSpy’s Average Price Study:
- The most popular graphics cards cost +$856 more today than five years ago (a +141% increase)
- The most popular VR headsets are +$581 more today than five years ago (a +116% increase)
- The most popular cell phones cost +$528 more today than five years ago (an increase of +75%)
- The most popular power banks cost +$114 more today than five years ago (an increase of +163%)
- The most popular headphones are -$58 less today than five years ago (a -13% drop)
- The most popular smart home transmitters cost -$19 less today compared to five years ago (a downward increase or -27%)
- The most popular Nintendo Switch games are -$19 less today than five years ago (a -27% drop)