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I think there's more to it than the 2 points the author addresses. For many tech "toys" the profits have shifted from initial sale to steady income across the life of the item. Amazon doesn't need to sell Kindles for much (if any) over their cost because Kindle owners can be expected to buy media from Amazon. Same goes for Apple products. Same goes for cell phones. I don't see any sort of entertainment or other media represented on this graph, how have those price points changed?