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tsk1979 · 11th December 2006, 14:04

With computers and electronics, newer tech enables to produce a faster chip at less than half the cost. With cars this is not the case. The cost of production does not fall so rapidly due to large material and labour costs.
In case of chips etc., the RAW material is sand. All the cost is technology, which gets very very cheap as new ones come around.
Take this. In 1995 a computer with as much processing power as a portable laptop today will set you back by multi million dollars. But with new technology, the cost is only around 40,000rs.
Compare that to the cost of producing a 300bhp engine in 1995 and 300bhp engine in 2006.

11th December 2006, 14:04	#51 (permalink)
tsk1979 Team-BHP Moderator Join Date: Feb 2005 Location: Noida, New Delhi Posts: 8,041	With computers and electronics, newer tech enables to produce a faster chip at less than half the cost. With cars this is not the case. The cost of production does not fall so rapidly due to large material and labour costs. In case of chips etc., the RAW material is sand. All the cost is technology, which gets very very cheap as new ones come around. Take this. In 1995 a computer with as much processing power as a portable laptop today will set you back by multi million dollars. But with new technology, the cost is only around 40,000rs. Compare that to the cost of producing a 300bhp engine in 1995 and 300bhp engine in 2006. __________________ .--- ..- ... - - .-- --- -- --- .-. . -.. .- -.-- ... - --- --. --- !!