Why it doesn’t always pay to be an early adopter

It was just six months ago when Canada's own Research in Motion launched its BlackBerry PlayBook tablet, which started at $499.99 for the 16GB version.

Today, you can pick up the exact same model for $199.99. This aggressively discounted price will remain until December 1.

What's the lesson here? Unless you thrive on being the first on your block with the latest and greatest gadgets, it often pays to wait a bit.

In fact, the following are five reasons why it doesn't always pay to be an early adopter.

Prices come down

The BlackBerry PlayBook example isn't unique.

Technology always gets cheaper over time, so those who buy the first-generation of a product are usually paying a lot more than the person who buys the next generation.

For example, when Sony's PlayStation 3 console debuted in Canada it cost $549 to $659, depending on the version. After numerous price drops over the years, you can now buy a PlayStation 3 for $249.99 — which is also smaller and quieter, with a 160GB hard drive (opposed to 20GB or 60GB at launch) and with two great games: NHL 11 and Infamous.

While less dramatic, the Apple iPad debuted at $549 last year while the this year's iPad 2 — which is faster, thinner, lighter and with dual cameras — starts at $519.

Get the bugs out

It's been said an engineer, programmer and video game designer are never "done" their job on a product — they're just told when to stop. While in development, there's a checklist of hardware and software kinks that need to be addressed before the product ships.

But technology is always a work in progress, and new issues crop up — often when it's already in the hands of vocal consumers.

Take Windows Vista, for example, Microsoft's much-maligned operating system from 2007, which shipped with many incompatibility issues, performance problems and stringent security measures that made it more cumbersome to use. While many of these troubles were fixed via downloadable "patches," it frustrated many consumers who took a leap of faith in buying Microsoft's latest operating system.

But those who waited heard the criticism from others and many held off from upgrading until Windows 7 which proved to be a much better product.

Many video games also ship with a number of technical glitches ("bugs") that are fixed after the fact -- so why not wait until these issues are ironed out?

A sequel is likely on its way

If a product is successful, you bet a follow-up isn't far behind. The iPad -- and all other Apple products, including iPod, iPhone, Macs and Apple TV — are a perfect example of this. Don't ever think the one you're buying will be the last, especially if it proves popular.

I don't mean to pick on Apple, as many tech manufacturers release new iterations every few months — be it laptops, televisions, cameras, camcorders, e-book readers, GPS units and smartphones -- often with new features, too.

Video games, too, see many sequels, usually with new features and improvements as suggested by players themselves. Would Electronic Arts' Dead Space be a better game if you could play with a friend? Surprise, surprise, Dead Space 2 added a multiplayer component, too.

If you're buying a new gizmo or game on day one, be aware a sequel is almost inevitable.

Tech might prove obsolete

Another good reason why it doesn't always pay to be an early adopter is when the technology fails to take off.

Ask anyone old enough to remember Betamax, a superior product to VHS that lost to it in that format war. More recently, HD-DVD players (and compatible movies) were sold, only to lose out to Blu-ray.

Interestingly, even those who bought a Blu-ray player might be questioning their purchase because the high-definition disc format isn't gaining the kind of traction as seen with DVD — perhaps because people are less interested in buying their favourite films all over again or on-demand streaming media services make more sense. Or many folks can't see or hear much of a difference between DVD and Blu-ray in order to justify the purchase.

The same thing might happen with 3DTVs. Not only isn't there a lot of content right now, but there isn't a universal standard for 3D technology (some TVs require battery-powered "active shutter" glasses while others use "passive" 3D glasses similar to those found in movie theatres). Some TV makers are launching glasses-free 3DTVs in Canada next year, as well.

Don't believe the hype

Finally, sometimes when a product comes to Canada it doesn't deliver the same experience as it did in the U.S., resulting in a case of "too little, too late."

Remember it was a big deal when TiVo came to Canada a few years back? After all, it was the biggest personal video recorder (PVR) brand in the U.S. But when it launched in the Great White North, it didn't even offer HD recording, which was far behind what television providers were offering out of their PVRs. Plus, TiVo requires a monthly subscription cost -- a hard pill to swallow considering it's on top of your regular cable or satellite commitment.

Netflix is another example of this. Sure, it's now available in Canada, but guess what? We don't get nearly the same number of good TV shows and movies as the U.S. gets (likely due to licensing reasons) and we have something called data caps here in Canada, therefore we can't stream as much content here (without financial penalty) as they can in the U.S., generally speaking.

In other words, just because a technology is all the rage in the U.S., it doesn't mean you should buy into it the moment it arrives in Canada because it might not be as compelling a buy here.