I have noticed this in Kuwait, but a lot of business face this problem when they are trying to move old stock. The way good businesses think is how to get rid of old stock and when it is more useful to discount below cost.

The one thing you notice in Kuwait is that even if something is old they really don’t lower the price because they don’t want to lose a fils on the item. What they don’t take into account is the money they would make from having more stock of a faster or newer item which will make up for the lost. Its annoying when you go buy something old like a game and its still at 20-25KD when its selling for $40-50 online since its release. New sell for more then old and then is something they should take into consideration. That is the same for computer parts, most computer parts move quickly but sometimes there are those which stay for a bit. It applies in different areas but you notice they will always sell for a profit especially with electronics.