There’s one thing about reselling second-hand tech items that bugs me.

Are these people familiar with accumulated depreciation?

I am always pissed off at Facebook resellers hawking their obsolete models at the same prices when they bought it. Proudly proclaiming an item as scratch-free(an achievement in any case) or intact of its original pieces. Then saying that they’ll use the money to buy a newer , upgraded version of the same product.

Well unfortunately for the buyers there is such a thing as accumulated depreciation. As a product ages, its value decreases. Meaning that the present value will decrease from the initial cost as time passes.  For computers and tech gadgets more than rust is taken into consideration when calculating for depreciation loss.

The development cycle for computers mean that every two years a product is rendered obsolete. With newer versions coming out older products once priced at premium are sold with discount prices. In order to quickly drain an old inventory to make space for incoming modes. Which is why older iPhone prices drop when iPhone n + 1 looms over the horizon.

The life span of computers may not last more than 4 years. Although I have seen computers last 8 years even in rugged use. The incredibly short life span of a tech gadget means careful consideration of developments in the pipeline. If a revolutionary new technological innovation is coming best to save your money for that. Chances are its not backward compatible.

NB: Although this rant is 2 years old I felt the need to write this. Horrible language and bad writing skills be damned. Thankfully with the drop in behavior people are finally realizing its true cost. Namely, wasting money on obsolete models.


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