Why You Can’t Complain About The Price Of Today’s Gadgets
So your MacBook cost $US1500—boo hoo. Thirty years ago, when the average salary was under $US18,000, you’d have paid $2638 for an Apple II with 48K of RAM ($7770 in today’s dollars). And a cellphone? Waaaay more.
Cellular technology had been in development since the early ’50s, but mobile phones didn’t become commercially available until Motorola’s DynaTAC 8000X gained FCC acceptance in 1983. The DynaTAC had 30 minutes of talk time, 8 hours of standby and memory for 30 numbers. It was also big enough to club that punk kid with the Flock of Seagulls haircut without getting blood on your favourite tweed jacket (you know, the one with the elbow pads). And the worst part is that you would have paid $US4,000 for the privilege, $US8,589 when you calculate for inflation. Needless to say, spending $US200, or even $US400, for the latest smartphone doesn’t seem like a bad deal comparatively. [Image via TUAW]
The point is this: We all like to complain about the price of our gadgets, but the truth is that factors like increased competition and better manufacturing technologies have made the gadgets we buy today seem like extreme bargains when put in a historical context. Let’s take a look at some more examples:
VCRs vs Blu-ray Players
In the late ’70s, JVC’s 30-pound HR-3300 VHS player rolled out onto load-bearing retail shelves with a price tag of about $US1400 ($4,124 in 2009 dollars). The rival Sony SL-5400 Betamax player with its new fangled fast forward and rewind capability wasn’t much better at $US1250 ($3682 in 2009 dollars).
In contrast, the Samsung BD-P1000 was one of the first Blu-ray players to hit the US in 2006—and it debuted for around $US1000. That same year you could buy a Blu-ray player in a PS3 for under $US500. Today, basic Blu-ray players can be had for less than $US100. That’s a 90% drop in just three years.
Computers Then and Now
If the Apple II was too rich for your blood, you could have gone out and purchased the base model Atari 800 with up to 48K RAM and a 1.8MHz MOS 6502 processor for $US1000 ($2,946). Want a floppy drive with that? No problem, that will be $US600 ($1,767) extra. I’ll even throw in a black-on-white dot-matrix printer for $US450 ($1,326). If you are looking for something in the budget range, the original Radio Shack Tandy TRS-80 with 4-16K RAM and a 1.77 MHz Zilog Z-80A processor starts at $US600 ($1,767).
If you have a little more money to burn I could hook you up with the TRS-80 Model II with 64K RAM, 12″ monochrome monitor (40×24 or 80×24 text), and a built-in 500K 8-inch floppy drive for $US3899 ($11,485). To put things into perspective, $US11,000 is about what some silly gamer would pay for a top-of-the-line Alienware ALX X58 desktop with all the bells and whistles—including an overclocked Core i7-975 Extreme processor, dual 1.792MB NVIDIA GeForce GTX 295 GPUs, 24GB of RAM, and 2 x 256GB SSDs (with 2TB of additional storage), not to mention a 30-inch high-def LCD monitor.
As you’ll see later on, in the late 1970s, many computers cost the same as new cars.
Gaming Consoles Then and Now
If you were gaming at home in the late ’70s, chances are you had the Atari 2600. It was the first console to feature plug-in cartridges and it cost $US200 ($589) at launch. All in all, that figure is comparable to some configurations of the Xbox 360 and PS3 at launch, but it is important to consider that the latter consoles do more than just play games, acting as movie players, music decks, telecommunications hubs, all of which would have meant buying separate, expensive, primitive components back then.
Cassette Walkman vs MP3 Players
The cassette tape reigned supreme 30 years ago; for most music lovers today, it’s all about the download. Difference is, you can get an iPod shuffle that holds about 1000 songs for $US79 (and many other MP3 players cost far less). In 1979, a cassette Walkman that could only play one Supertramp album at a time cost $US200 ($589).
Televisions Then and Now
Television price records from the period around the late ’70s are spotty at best, because then, as now, pricing was ultracompetitive. But it is clear that most people would have to be content with a 25-inch set (and it was probably encased in a 2-ton ornate wooden shell). According to tvhistory.tv, colour console models like a 25-inch Sylvania cost $US530 to $US850 ($1,561 to $US2,503), and a 19-inch JVC “tabletop” model at $US560 ($1,650). On the other hand, black-and-white models like a 22-inch Motorola console ran about $US260 ($766).
Today, you can randomly walk into just about any electronics store and get a 40- to 50-inch 1080p HDTV for around $US1000. If you settle for 720p you could be talking $US500 or less depending on the size, and those would all be in full colour, too. Old fashioned tube TVs, (the B&W sets of 2009) cost $100 to $US300 new—if you can even find one.
Other Popular Gadgets
How much did other gadgets cost in the late ’70s?
• Clothes Washer/Dryer: From $US199 and $US219 respectively ($586 to $US645)—that’s fairly comparable to today’s lower-end models. Although, if you are on a budget you can easily find models that are significantly cheaper.
• Microwave: From $US169 ($498)—today many standard microwaves can be had for $US60 or less.
• Dishwasher: From $US259 ($763)—today you can easily find basic dishwashers for $US300 or less.
• Stereo System: $US299 ($884)—options vary of course, but that’s what a typical AM/FM/8-Track/record stereo system cost. Today there are a ridiculous number of devices available to play and stream music in the house—many with their own included speakers and amplifier, not to mention wireless connectivity and vast internal music and video storage—that cost less than half that.
• Calculator: $US25 ($73)—Calculators come attached to everything these days but in the late ’70s, if you wanted to score an original TI-30, it would have set you back a few bucks. Today’s TI-30 models cost $US20 or less. [The People History]
Cars Then and Now
Cars exist on a different plane than consumer electronics. Due to a different system of manufacturing, R&D and labour, prices have not steadily trended downward—in fact, quite the contrary. For example, The People History gives us a good idea about the price of specific cars 30 years ago—including models that are still in production today. One of those cars, the Toyota Corolla, is listed at $US3,698 ($10,893). Today, a Toyota Corolla starts at around $US15,350. On the higher end, the Chevy Corvette ran about $US12,313 ($36,270) in 1979. Today, a base model Corvette sells for around $US45,515.
Still, if you have been thinking about getting a new vehicle, this might be the best time in 30 years to do so. According to Comerica’s annual Auto Affordability Index, cars are actually more affordable now than they were in 1979. Plus, the economy is forcing automakers and the government to offer all kinds of incentives which are pushing prices even lower. [Image via Free By 50]
By now you are probably getting the idea—being a tech nerd is cheaper than ever. Sure, new technology is going to be expensive, but that is a consequence that most early adopters are willing to accept. The good news is that, for the most part, manufacturers are charging much lower early adopter premiums when compared to 30 years ago (and charging them for a shorter period of time). With fierce competition and advanced manufacturing driving down the price of new technology at a blistering rate, it takes less patience than ever to reap greater and greater rewards. So quit yer bitchin’! [Top Image via RetroWow]
Gizmodo ‘79 is a week-long celebration of gadgets and geekdom 30 years ago, as the analogue age gave way to the digital, and most of our favourite toys were just being born.
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Comments (AU Comments | US Comments)
@LolpantsofArabia: what the fuck are you talking about? am i not entitled to my opinion?
elduro13
The saddest part is, even though things were relatively more expensive back then, I'd be willing to bet that the average family's savings account 30 years ago was bigger than it is today. Doesn't the average American now have thousands in credit card debt and zero savings?
As things get cheaper, they become "must haves" and they end up getting replaced on a much faster time scale too. Now instead of a family having one computer, one tv, and one phone, everybody in the house has at least one of each. End result is owning lots of gadgets, and in the end spending much more money despite the cheaper prices.
EQC
@tande04: So just being a dick, then, essentially?
LolpantsofArabia
@Kayonesoft: Really? The dev teams were tiny.
LolpantsofArabia
@elduro13: Oh, sod off. It's an interesting comparison.
And I'd bet that he, like me, thinks that the democratisation of geekdom is nothing but a good thing.
LolpantsofArabia
@wiggatron: Partly. More than that, though, they mostly needed a lot more moving parts.
LolpantsofArabia
@dolo54 blows minds and blows engines!: I was born in 1974, and I totally agree with everything you say. I can barely remember how we coped before 1995; I'd guess today's kids can barely imagine it.
By the way, the '1979' gadgets were hilarious, no? Most of them just looked like 1979 was the generic 'olden days'.
(Yes, I am an old bastard. With a Mac Mini media centre, Snow Leopard and a scripted wifi wake-up call, thank you very much.)
LolpantsofArabia
Let's not forget here, Gizmodo, that in 1980, things like computers and VCRs were luxuries, not necessities.
So yeah, we have the right to complain about the price of goods today because they are far more necessary to life than they were in 1979.
The same thing happened with the automobile, the light bulb, hell even the TV. New technology always comes at a premium. It's like the people who bought DDR3 when it was still $300 for 1gig, or people who bought FiOS a few years ago when it was new tech. Yeah, 10 years from now, people will probably say '16 gigs of DDR3 for $50? WHAT A RIP!'. But that's because in respect to their time period, where the norm for a computer is 64 gigs of RAM, THAT IS OVERPRICED.
As technology changes, perspectives change. Yeah, a computer cost $3000 in 1980, but that was one of the coolest, most awesome machines then.
taniquetil
Are you god damn kidding me? NOBODY pays $11,000 for a gaming computer except millionaires who like to throw money around. Average gamer probably spends $800 on a pc that can game + do a million other things for 3-4 years. The cost of pc gaming is highly exaggerated by console players.
jeembomb
Oh wow.. nostalgia.
I'm impressed with the info.
--Core--
Oh shit Atari that is like 3D and shit, what you got. You got E.T. and that equals suck.
glamajamma
HAHAHA!!! Screw you Atari this thread is owned by Intellivision!
Bombs Away Atari!
glamajamma
I was born in 1970. Trust me, I feel the huge difference in prices and more than that, possibilities. I am constantly amazed at how much technology you can get for the money now. In 1970 only a select few individuals who could afford the schooling and chose that path would get to work on computers and learn how to program. Now the poorest of the poor could do it if they are so inclined. The internet also allows you to learn about anything even if you can't afford to go to a college you still have this amazing resource for advanced learning.
Same with music. Recording your own music used to be prohibitively expensive. If you had a band you would probably make a 4-track demo tape (which always sounded like shit) and pass it around in the hopes of scoring a record deal. Now anyone can make a professional sounding recording at home and forgo the record companies altogether if they wish. This technology is incredibly liberating for everyone. It is a great equalizer.
Great addition to the Giz '79 thread.
One thing that may play into the discussion is how the middle class is shrinking, or how wide the gap has gotten between the jet set and the working class.
Prices then and now may follow the decline of the middle class.
Akibake-
I blame China. In 1979 most of these items were still made here in the US, with decently paid US laborers.
btw you sound like one of those old men lecturing kids to appreciate what they have because they had to walk 5 miles to school in the snow with paper bags for shoes.
elduro13
Umm, I can bitch about prices all I want. Try to stop me! Anyway, these days nobody cant get a job so even a cheap gadget is still too expensive. Also, its not the 70's anymore. Most of us weren't born or weren't old enough to buy anything.
elduro13
@Bertone Zero77: And for saving me the hassle to, I'm actually shocked by these comparisons.
Car prices ma have gone way down since, but quality has gone down with it.
Thank you, dear Gizmodo; I am sending this to my wife to persuade her that my 2k$/year electronics fetish is perfectly reasonable. A small price, even, to pay for a husband's additional gratitude. That's the plan, anyway.
anderlan
@satellite phone costs now-and, honestly, there are probably more sat phones in use nowadays than cellular phones in 1979.
Lupus_Yonderboy
I wouldn't in my wildest dreams spend $1500 on a MacBook.
@SysRq: Nope, just myself.
Plus I was pointing out the use of a verb that implies ability not one that expresses a condition. I'm quite able to complain about the price of today's gadgets, whether its prudent to or if I have historical evidence to support my complaint is completely different.
tande04
We need more products with fake wood paneling again.
Jestermeister
I loved this article because 79' was about the time my dad was my age so I can put things into perspective from what he spent on our TI-99 to what I spent on my iMac. Funny how it's close to the same dollar amount but adjust it for inflation and I'd be ready to go back in time and smack my dad for spending that much on that computer. But if it weren't for that TI-99 my love of gadgetry wouldn't have blossomed into what it is today.
@redpoint: Really? huh. I bought my 42-inch plasma in 2003 for $3500, and suffered genuine buyers remorse on the car ride home. That is until I got it home and loaded up HALO! WHOA, NELLY!
@SysRq: I believe he is. Watch out, he may now go on a rampage of "MOAR PR0NNN!!!111"
Gotta love the edit button.
mysecretidentity
Those products cost a lot more to develop back then.
@tande04: It's the American way, God damn it.
@Bertone Zero77: I was about to post nearly the same exact thing. Thanks for saving me the hassle of typing it out!
mysecretidentity
"If you are looking for something in the budget range, the original Radio Shack Tandy TRS-80 with 4-16K RAM and a 1.77 MHz Zilog Z-80A processor starts at $600 ($1,767)."
I wrote my first game on a TRS-80 with 2k of RAM. I probably still have the code on cassette tape someplace.
diverguy
This was an interesting and well written article. I have wondered at times what those $ conversions for gadgets would look like. We had a giant microwave like the one pictured above that I was constantly warned might "cook my privates" if I stood in front of it while it was on.
LikesLemurs
@scaught: Not sure, but probably along the same sliding scale as the brick. On topic.... pops had a "car phone" in his Monte' Carlo - gigantor antenna, rotary style mic/speaker handset that only had one call button - operator.
"It's so compact I hardly even notice it!"
THAT'S WHAT SHE SAID! Ha ha ha! Sorry
I want a comparison on how much more we pay for subscription services now... cellphone service, internet/cable, cellular data plan, netflix, gamefly, etc. I would love to be assured that people were paying as much back then also.
@OMG! Ponies!: Mad Men or just having a flashback?
I remember paying 75cents for a Trapper Netbook.
darngooddesign
@awperk: i was thinking the same thing when i recently replaced my 15" LCD that cost me $450 (on sale) back in 2003. the replacement LCD cost me $160 for a 23" widescreen that is 1080p
ok now compare the dollars worth then to now, and see what we REALLY pay.
Starting wage 30 years ago??
$2.65
NOW (next week)
$7.25
Cost of making something IN THE USA 30 years ago?
Expensive..
Cost of making goods OUTSIDE THE USA(NOW)
CHEAP..
$600 rent 30 years ago, was a Castle.
Profit margin 30 years ago..NOT THAT MUCH.
WHO had the $9 per hour job, 30 years ago. That was HIGH pay.
"you'd have paid $2638 for an Apple II with 48K of RAM ($7770 in today's dollars)."
Means you should be getting $27 per hour wage NOW..
ECAsh
@
Skeetz
@OMG! Ponies!: to be honest, sir, it's the best place to keep them to drown out your yelling.
Nick
@tande04: Are you speaking on behalf of the internet?
GOD DAMMIT! Why the hell did we buy Wheelwriters for the secretarial pool if they can't spell for shit!
I swear, Harvey, next time you come in here with a departmental budget larded down with that kind of equipment expenditure, I'm going to shove the old typewriters up your ass! You're officially on my shitlist. We're not fucking Rockefellers here.
Sometimes I think you idiots in Purchasing walk around with your heads up your ass!
this isn't really retro but it got me thinking about when i had to make an insurance claim last year when my LCD monitor broke during a lightning strike. the monitor was a 15" HP and had cost something like $700 back when it was new in 2000. Just a month ago i got a 22" 1080p monitor from HP for $130. my how times have changed.
awperk
@scaught: Good question. I know when I got my first cellular phone plan (I believe it was in 1993) it was around $30 dollars for a 30 minute plan. Yeah, you read right, a 30 MINUTE plan. And my first phone was an audiovox bag phone (some bastard broke into my car and stole it too.)
@AaronC-T: Along with college you can also make the argument that before the GI's returned from WWII college was the domain of the elite and you could get not only a decent but good job with just a highschool diploma. After the vets and even more so after the boomers you can't get anywhere without a college degree (which lowers the value of a simple degree) while you're paying the higher growing cost of that education.
tande04
Hey Angie! Where the hell is the Anderson proposal? We need to get it off to the printers by 5:00! And while you're at it, call over to Pinelawn and move the tee-time from 2:00 PM to 3:00 PM.
And send Sylvia in here - I need her to take a letter!
@scaught: "That baby was known as the "Brick," based on its heft (2.5 pounds) and shape. 8 hours of standby time and 30 minutes of talk time (woo hoo!). Service plans were a bit pricey, at costing $50 a month for the service, plus 40 cents a minute at peak hours and 24 cents a minute at off-peak times."
Link
Purple Monkey Dishwasher
My wife still has that Walkman and in mint condition. I was holding it just 2 days ago wondering how much it would cost today...
Unreal....
aec007
@lilaliendog: We all want deals I guess. Ever since I discovered slickdeals a couple of years ago it really turned me into a cheap bastard. Now I usually wait for great low prices on items I really want. I really want a PS3 though but I'm willing to wait for a lower price.
@Skeetz:
definitely NOT a fruit - you would have referred to it as an ascot.
I agree with Tande04. I also, say, though, that back then college didn't cost nearly as much and I people wouldn't have to worry about whether or not they'd have jobs when they got out due to the crappy job market.
Nice read, though. Still gonna complain. :P
AaronC-T
@OMG! Ponies!: If you slap Harry's ass and tell him how good it looks, he'll likely not mind when you call him a fruit to his face.
I find it odd that we keep getting these articles admonishing 'us' (whoever 'you' in the title is referring to') for being so sensitive to prices.
Indeed the math might indicate that we supposedly have it better than back in the day. But context wise we don't feel that way and personally that's not good enough a reason to feel otherwise.
I'm extrapolating here but its like telling people who been fighting for rights for decades to 'wise up' because they had it worse back in the day. I respond to that, 'so what?'. As far as I am concerned the situation can be improved.
wangstra
@Skeetz: Nicely done. And it's a good thing they fixed the strikethrough tag, otherwise you would be a big hit with the "boys ladies" and I hear it's frowned upon to take another man's woman.
mysecretidentity
@ester: Her tampon
Purple Monkey Dishwasher
Yes ... but this was all super cutting-edge technology back-then. Remember HDTVs back 2003: $18K+ ... If you had a computer in 1983, you were just plain weird, they really had no purpose and very few owned ... hence their expense.
redpoint
@OMG! Ponies!: I never thought I would be so rich as to be able to afford a car, nor so poor to not to be able to afford a servant.
This is why I am always wondering why everyone complains about the price of a ps3. When I was like 10 I bought my own Genesis with Sonic 1 doing chores and saving money from Christmas and my birthday. I remember the cost and where I bought it, it was at Toys R Us in Mesa, AZ next to Fiesta Mall. 300 bucks and I didn't have money for another game or controller but I was happy to spend it and loved my new gaming system.
lilaliendog
@OMG! Ponies!: I am NOT a fruit. This neckerchief happens to be quite fashionable. And a hit with the
boysladies.Skeetz
@OMG! Ponies!: blame the democrats.
Nick
@lostarchitect: Well he can he probably just likes (or at least wants to keep) his job.
tande04
@OMG! Ponies!: you can't do that stuff? why the hell not?
Wow, you guys are going all out for this Retromodo'79! I'm impressed with the sheer amount of info you guys manage to cram into one post. Good Job. How am I supposed to complain about paying so much for my PS3/iPod/Cellphone/Car now!?
--Damnit!!
Bertone Zero77
What the heck did cellphone service cost back in the day?
scaught
@ester: The microwave.
tande04
what exactly is she referring to in that picture?
ester
This is mainly because back then, all these gadgets were pretty new. Nowadays, cell phones and computers are everywhere, so a 5,000 pricetage on a phone would be ridiculous. Back then, it would be understandable because they were brand new.
Shadowhunter72
Yeah. But things still suck royally nowadays.
My secretary still doesn't use the intercom. The coffee in the break room is still crap.
I'm not allowed to smoke cigars in my office anymore or slap the file girls' asses as they walk by. I'm not allowed to tell the hot blonde at Reception how good her tits look and I'm not allowed to call Harry in Billing a fruit to his face.
I can't have three-martini lunches and it seems like any schmo with a pulse can get on a plane. When did those freaks stop riding the Greyhound?
Oh I can complain about whatever the hell I want. I complain about all kinds on nonsensical shit I can't do anything about.
I shouldn't complain about the price of today's gadgets, but I sure as hell can.
tande04
Apple II commercial: 8 + 4 = 7 fail
MePerson
Yeah...actually they cost MORE. It's just that manufacturing is now wholly subsidized by third world countries and un-sustainable manufacturing practices.
FrankenPC
@Bertone Zero77: Actually you can still complain because I believe Sean totally missed the reason why we complain about the price of some gadgets. For me it's like this.. Why is an iphone GS 700 bucks when I can get a netbook that does so much more for 250? More storage, bigger screen, faster proc, and more Ram...
Cliff_Dangers
The 2600 was not the first programmable video game system that used cartridges to change games. That honour goes to Fairchild's Channel F system, released a couple of years previous.
8TrackMind
Well blame all those morons who purchased and advocated for Macs and IBM compatibles. Amigas and Atari STs were one quarter of the cost of the cheapest IBM compatible, and one fifth the price of the cheapest Macintosh.
What those morons did, was ignore the massively superior hardware designs and software setup of both these machines, both running on the same CPU as the Macintosh, but both having graphics and sound setups that made Apple look like they had microscopic genitals.... What Apple proved was that you can charge the earth, advertise with the extra cash you made, and bring in more customers who will pay the earth for your inferior system.
What the Amiga proved was that you can have the worlds best system, but if you undercharge, your competition will use their higher profit margin to convince customers that your system is only a toy. Basically reinforcing the idea that you have to pay the most to get the best. Or "price tag before elegance".
So blame those morons. They were so idiotic that they did not do any due diligence in their original purchases, and then advocated for an inferior system blindly. Willingly unaware that they were pushing inferior and overpriced machines. Me? Well I tested the latest IBM compatibles, the latest Macintoshes, the Atari ST, the Amiga 500, and even the NES (store clerks were told to sell it as a computer back then)... later I tested the BBC Archimedes, SGI and a few other systems. The same morons who were pushing the Mac or PC had not tested ANYTHING else.
So how expensive would computers be today if we had started off the 90's with machines that cost $1000US, and then elegance over price tag was the winning formula? We would have hit the sub $100 machine a decade ago.
polyfrolic
Thank you for this post
I had the first Sony portable CD player back in the 1980s. $300. I had it for a week, dropped it on the sidewalk, and was left with a handful of electronic parts.
mlibrescu
still got my atari 2600, right now, in my living room. it needs some repairs [no sound] but i'd say 30 years of use works out to reasonable value for the price of the day
catastrophegirl - sometimes makes typos and doesn't care