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Americans are constantly in motion. The popularity of cell phones and laptop computers illustrates this point. Luckily for on-the-go consumers, the prices of these mobile products are falling. The average cost of a laptop in 2000 was more than $2,000. Each year, the average price has dropped by several hundred dollars. Competition has played the biggest role in the downward spiral of profits for laptop makers. In 2006, the profit margin for most laptops was only $50. This meager profit means that manufacturers are aiming for high sales volume rather than high profit margins. They are also counting on consumers to spend more on expensive accessories, such as service plans, docking stations, and batteries. How does this competitive market impact you? Consumers can expect lower prices and a wider selection. In addition, the competition ensures innovation, as manufacturers search for the gadget or accessory that none of us can do without. |
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