How much is your tech depreciation?

Windows7forever on 15/12/2012 - 08:20

Not only do we consider the bargains and cheap prices, of acquiring electronics and tech gear but one must consider the inevitable depreciation factor that is associated with these goods.

I estimate my own personal tech depreciation at around $5000 which is a fairly modest figure. Unlike in the past, I often buy tech products well into the maturity stage once prices have fallen dramatically and use untill end-of-life(either through mandatory obsolescence, broken down , no longer supported, etc).
This greatly protects as a buffer against accelerated depreciation and decline of value.

I understand many consumers like to have the "latest and greatest" tech gear and don't want to wait 6-12 months for mass market penetration and prices to fall, hence they pay a price premium and their residual value for resale would be much lower than if they had waited a while.

You must factor in all tech acquisitions such as computers, tablets, mobile phones, external peripherals, game consoles, displays, optical disc players, etc.

Electrical & Electronics

Comments

  • aerona on 15/12/2012 - 14:13
    -5

    TL:DR

    • Windows7forever on 15/12/2012 - 18:36

      what language are you talking?

      • imaximax1 on 15/12/2012 - 19:21

        (stands for too long, didnt read).

        Abit mean if you ask me.

        • Windows7forever on 16/12/2012 - 07:32

          Well if I abbreviated all my prose and used meaningless acronyms in substitute of proper words then nobody would understand me. Case in point.

    • exc3113nce on 15/12/2012 - 20:16

      Really? It's literally 11 lines long

  • _Bruce_ on 15/12/2012 - 16:32

    I estimate my own personal tech depreciation at around $5000 which is a fairly modest figure.

    Per year? Month? Since when?

    I don't spend $5k/year on tech, so mine definitely isn't that. And would you include media such as games? Assuming only hardware mine might be $1K/year, though probably less.

    • Windows7forever on 15/12/2012 - 18:35
      +1

      $5000 all up ever. I am only thinking in terms of hardware but i guess you could try and calculate software depreciation if you spend heaps of money on it.

      • _Bruce_ on 16/12/2012 - 10:16

        $5000 all up ever.

        Doesn't help unless you also say how long you have been buying tech items for.

        As for software, my main thought is games from the perspective of purchasing day 1 releases (easily over $60, even here) rather than waiting till the title is older (PC usually hits $5 eventually). This is likely to add up to more than hardware for many people.

  • Windows7forever on 16/12/2012 - 07:38

    It's an interesting topic but I suspect it is merely an "unpleasant afterthough" to most people who would be shocked to see how much they have spent on tech goods over the years, if they ever cared to tally up the figures of their expenditures.

    It's not always simple to calculate residual value and the straightline method of depreciation is only used for accounting convention, but it usually doesn't reflect the real value of the "assets".

  • ar993 on 19/12/2012 - 17:05
    +1

    It's an interesting topic indeed.

    I really hate to see my gadget is being 30% to 50% reduced in price soon after I buy it. Due to this reason, I've been sucked into buying second-hand stuff from Gumtree. There are some risks involved though - you wouldn't know what condition the item is in or whether there's any issue with it etc. However, a careful inspection and buying stuff with warranty may keep your purchase safe. Another thing worth mentioning, I never feel shy to make realistic offers :)

    Just to name a few things I've bought this year…
    Yamaha 5.1 H/theatre (with floor standing speakers, ypao etc) - $500 with 1 yr remaining warranty (inc JB receipt… it was bought for $1200 just a year ago)
    Panasonic 50" Plasma - 8 months old for around $430 (inc Myer receipt of $850)
    Asus Transformer Prime - packed/brand new $550 (OW was selling it for $750 then)
    HTC One XL 32GB (telstra unlocked) - 3 months old for $350
    Wii with single controller - $40

    I've also sold my old Hisense 32" lcd tv, Pentax SLR, Phillips 2.1 h/theatre, Acer Iconia tablet etc to recoup costs for the new buys.

    So far, the strategy worked for me and saved quite a bit. Or may be I was just lucky hehe

    Unfortunately, my wife hates this "hobby" of mine and I've been barred to buy anything second-hand except my electronic stuff.

    • Windows7forever on 24/12/2012 - 23:11

      Seems like you have saved stacks of money by perusing the 2nd hand market.
      That Yamaha system for $500 sounds like a steal!
      It amazing what people are prepared to lose when they are desperate for cash.

      I often have poor luck purchasing 2nd hand electronics and many sellers misrepresent item condition.
      I prefer to buy new with warranty and pay a bit more because I treat my possessions impeccably well and they can serve me for many years. If they screw up or malfunction I know it's not my fault and hopefully covered under warranty(although I've never had anything fault which was purchased new under warranty before). I've learnt to ignore retail prices though and just focus on the lowest possible price attainable because there are lots of crazy bargains floating around.

  • clubhonda on 30/12/2012 - 09:12
    +2

    So far my depreciation is close to the $0 mark on tech stuff. I've only bought stuff when they are at very, very good prices, such as the iconia tab or the samsung galaxy from telstra which a lot of us jumped on, and I tend to keep them in very good condition. When its time to sell I often find that the market price is still higher than what I paid for. I haven't tried to make money from it (too stressful and risky), but I haven't really lost money on them either.

    • Windows7forever on 30/12/2012 - 19:43

      Smart move. You must be very conservative and patient with your tech purchases.

  • tonyjzx on 30/12/2012 - 17:55
    +1

    how do you determine tech depreciation?

    eg. I have Dell 24" screen I bought for $1,000 maybe 7-8 yrs ago. It works fine. I expect it to work fine for the next 7-8 yrs. What is the depreciation? Who cares? I'll never sell it. I'll continue to use it.

    If you sell stuff 2nd hand of course, expect to take a bath. Nothing appreciates except real estate and Apple shares.

    • Windows7forever on 30/12/2012 - 19:45

      True. Unless you are selling it then the current(and future) value does not really matter. 15+ years out of a PC monitor is a tremendous life span. Don't most of them only have a 50k hour life span?

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