Profit margins on electronic equipment varies from product to product. The biggest profits for electronics retailers don’t always come from the highest priced items. Product saturation, improved manufacturing techniques and emerging technologies all play a role in setting the retail prices on the products we purchase. Other inherent operating costs also play a part in determining just how much of the purchase price translates into actual margin gains.
Anyone who purchased a flat panel TV over the past few years knows first-hand how the costs have come down, while screen sizes and features have increased. An LCD TV that retailed at $5000.00 five years ago averages $2000 to $2500 in 2013.