9mmCensor
Disabled
- Joined
- Oct 23, 2003
- Location
- Banned Camp
I am interested in how the value of something deteriorates with age. And was hoping someone else is, who is good at number crunching. And maybe someone who has been around for a while (PCI to AGP transition).
Tracking the value of a product, there is a generalized patern. Starts high, falls with time and superior product releases, hits bottom, then either is worthless or becomes rare and rises in price slightly.
Now lets have a theoretical example of a AGP videocard.
New flagship video cards by ATI and NVIDIA are released approximately every 6 months, spring and fall.
AGP1 was released in fall 2k3. At the sum of $500. AGP1 Price $500 Used - $NA
AGP2 was released in spring 2k4. At the sum of $500. AGP1 Price $400 Used $350
AGP3 was released in fall 2k4. At the sum of $500. AGP1 Price $350 Used $250
PCIE1 was released in fall 2k4. At the sum of $550. AGP1 Price $350 Used $250
AGP4 was released in spring 2k5. At the sum of $500.
PCIE2 was released in spring 2k5. At the sum of $500
Ok, now the last two are the interesting ones.
You will notice that Fall 2K4 PCEI was introduced. Products fall in value, as they age and are surpassed by superior ones. They have resale value because people will buy them, and use them. If people dont want to use them, their is no market. If a new technology comes out, to replace the old one, the old tech looses alot of value, but there is still overlap.
People have the opportunity to get the top of the old tech, as people sell it, to convert to the new tech.
The interesting thing will be finding the ideal time to buy and sell. Do you hold on to your old tech, in the face of new tech, and let its value collapse, or do you sell, and convert to the new technology.
Tracking the value of a product, there is a generalized patern. Starts high, falls with time and superior product releases, hits bottom, then either is worthless or becomes rare and rises in price slightly.
Now lets have a theoretical example of a AGP videocard.
New flagship video cards by ATI and NVIDIA are released approximately every 6 months, spring and fall.
AGP1 was released in fall 2k3. At the sum of $500. AGP1 Price $500 Used - $NA
AGP2 was released in spring 2k4. At the sum of $500. AGP1 Price $400 Used $350
AGP3 was released in fall 2k4. At the sum of $500. AGP1 Price $350 Used $250
PCIE1 was released in fall 2k4. At the sum of $550. AGP1 Price $350 Used $250
AGP4 was released in spring 2k5. At the sum of $500.
PCIE2 was released in spring 2k5. At the sum of $500
Ok, now the last two are the interesting ones.
You will notice that Fall 2K4 PCEI was introduced. Products fall in value, as they age and are surpassed by superior ones. They have resale value because people will buy them, and use them. If people dont want to use them, their is no market. If a new technology comes out, to replace the old one, the old tech looses alot of value, but there is still overlap.
People have the opportunity to get the top of the old tech, as people sell it, to convert to the new tech.
The interesting thing will be finding the ideal time to buy and sell. Do you hold on to your old tech, in the face of new tech, and let its value collapse, or do you sell, and convert to the new technology.