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Electronics Are Not A Physical Investment

My last article, Technology Forces Personal Progress & Benefits Everyone, addressed the idea that holding out on a new computer can be a costly strategy if your old one is holding you back. This time, I want to play Devil’s advocate and talk about how horrible of an investment any electronic device is (meaning the physical object itself).

Famed photographic blogger Ken Rockwell has a great term for the degradation of value of digital cameras. He calls it Digital Rot. He goes on to explain how a camera sold in 2003 for $5,500.00 now sells for about $75.00 – virtually worthless. It still takes the same kind of pictures it did 7 years ago, but so much has changed that there is no longer a demand for that camera. The same thing applies to just about anything that plugs in and does something more than light up a room.

Just like driving a new car off the lot, the minute your new computer comes off the shelf or the Fed Ex truck it goes down in value a considerable amount. There is little sense in the value we place on electronics, as they take a lot of work to develop and manufacture. The true devaluation comes from the constant advancement of technology. Within a year’s time, most computer technology surpasses itself. Newer processors, faster RAM, bigger hard drives, etc. You can never keep up with the new stuff.

There was a time when you could buy a computer and upgrade all the components to keep it relevant for a longer period of time, but with the popularity of devices like laptops, netbooks, and smart phones, the computer has headed down a “closed system” road. All-in-one computers like the iMac or Dell Studio One are not easily upgraded. This means that now more than ever, computers and digital devices have a shorter life span.

The next time you purchase a new computer, realize that it is not a long term relationship you are getting into. Make a plan on how you will eventually dispose of your current machine (E-Cycling Central is a good resource for that). Make sure that you have a good backup of the real digital value – your data.

Eventually, we will see less demand on the personal computer and more on internet based services so that our digital devices will all communicate and access your data without care of the device itself. It is already happening now, but there is no standard that has been set. Pretty soon, when you take a picture on your camera, it will appear on a digital frame instantly without a wire. A new song will come out from your favorite artist and play on your iPod or stereo automatically without having to transfer it from your PC. You’ll drive home from work and get a text message from your refrigerator that you’re out of beer, so you stop at the store on the way home to get some. Your TV will know you are a little late and have the game all queued up and ready to play. Sure you can do this all now, but it’s costly and complicated – nothing works seamlessly yet. The point is the value in all of the digital devices you own is in what they do to make your life better, not in what they physically are. And the real investment is in your data, so backup you computer!

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