Deflation has to do with a relationshp between money and value.
Technological deflation has to do with the fact that technological advancement increases value while keeping prices flat (e.g., an iPhone 6…
Deflation has to do with a relationshp between money and value. Lets say that it costs you $10 to buy ten gallons of gasoline. If the cost stays the same, but the value increases ($10 for 12 gallons of gasoline), you have deflation. If the cost decreases and the value stays the same ($8 for 12 gallons of gasoline), you have deflation.
Technological deflation has to do with the fact that technological advancement increases value while keeping prices flat (e.g., an iPhone 6 is more powerful than / has more utility than a iPhone 5 — but they both cost $600 when introduced). In this case, keeping price constant, you see a significant increase in value.
You can see the opposite effect in the collapse around home consumer electronics — what used to cost $3000 in the form of a phone, camera, VCR, calculator, video camera, etc. now costs $600. Broadly equivalent “value” — significant decrease in price.
You can also see this process more prosaically as the result of the the output of techology. Consider the price of photographs moving from analog (low relative tech) to digital (high relative tech) or the price of music moving from CD to MP3 to spotify. Or the price of t-shirts. Or corn.