Video shows the jaw-dropping cost of laptops in 1989: Are we getting technology cheaper than ever?
In 1989, personal computers cost thousands of dollars, equivalent to $12,000-$26,000 today. Moore's Law and technological advancements made computers cheaper over time. While consumer electronics have become more affordable due to mass production,...
By ET Online |
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Personal computers in 1989 were astonishingly expensive, costing between $5,000 and $11,000 for very limited specifications.
Imagine walking into an electronics store today and seeing a laptop priced at $10,000. Sounds absurd, right? But back in 1989, that was the reality. A resurfaced video shared by Instagram page @artificialintelligencenews.in has gone viral, showing just how jaw-droppingly expensive personal computers used to be. In the clip, experts discuss machines that cost anywhere from $5,000 to $11,000—a sum that, adjusted for inflation, would be roughly $12,000 to $26,000 today.
And what did you get for that price? A 20MB hard drive, a black-and-white display, and no internet connectivity. Compared to today’s ultra-thin, ultra-fast laptops that can cost as little as $300, the difference is staggering.
This drastic reduction in price is a textbook example of Moore’s Law, the famous prediction made by Intel co-founder Gordon Moore in 1965. He observed that the number of transistors on a microchip doubled approximately every two years, leading to exponential growth in computing power and decreasing costs.
For decades, this trend held true. Laptops, smartphones, and digital devices became faster, smaller, and dramatically cheaper. But as microprocessors near their physical limits, industry leaders are divided on whether Moore’s Law still applies. Nvidia’s CEO declared it "dead" in 2022, while Intel’s CEO insists it still holds. Over the decades, laptops, smartphones, and digital devices became faster, smaller, and dramatically cheaper.
The Hidden Factors Behind the Price Drop
While Moore’s Law explains part of the story, there’s more to it. A recent study by researchers Abhishek Malhotra and Tobias Schmidt highlights that mass production and technological standardization play a crucial role in making gadgets more affordable. Unlike nuclear reactors or space shuttles—which remain costly due to their complexity—consumer electronics benefit from high demand and streamlined manufacturing, bringing costs down over time.
Are We Still on the Same Track?
Despite decades of decreasing prices, a new trend is emerging. High-end processors, AI-driven chips, and cutting-edge technology are becoming more expensive again. The semiconductor industry is facing challenges in further miniaturization, and the cost of research and development is skyrocketing.
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While it’s clear that today’s tech is far more affordable than it was in 1989, the future is uncertain. Are we reaching the end of an era of cheap computing? Or will breakthroughs in AI and quantum computing continue to push prices down?
One thing is certain—if you ever feel like your laptop is too expensive, just remember: it could’ve been $10,000.
