Amplitude Modulation is an electronic communication systems technique wherein the baseband signal is

superimposed with the amplitude of the carrier wave i.e. the amplitude of the carrier wave is varying with
proportion to the base waveform being transmitted. Amplitude Modulation has been in use since the earliest days
of radio technology.

What is Amplitude Modulation (AM)?

When an amplitude modulated signal is created, the amplitude of the created signal represents the original
baseband signal to be transmitted. This amplitude forms an envelope over the underlying high-frequency carrier
wave. Here, the overall envelope of the carrier is modulated to carry the audio signal. AM is the simplest way of
modulating a signal.
Demodulation is a process where the signal that is a mixture of the amplitude of the baseband signal and the
frequency of the carrier signal, is deconstructed to yield the original signal that is to be transmitted. Amplitude
modulation and demodulation are equally simple to perform. The Amplitude modulated signal needs just a simple
diode detector circuit to demodulate.
The diode rectifier rectifies the incoming signal, allowing only one half of the signal waveform to pass through.
The capacitor is then used to remove the radio frequency parts of the signal, leaving just the original waveform.
As you see the equipment for demodulation is very cheap and this enables the cost of the receivers to be kept
low.
The first recorded instance of amplitude modulation of the baseband wave harks back to 1901, when a Canadian
man Reginald Fessenden used a continuous spark transmission to create the first amplitude modulation ever.
Into this continuous spark transmission, he puts a carbon microphone in the antenna lead. The sound waves
impacting on the microphone varied its resistances and this in turn varied the intensity of the transmission.
Though the accuracy and the signal-to-noise ratio in this earlier method of transmission was very low, with the
advent of a continuous sine wave generator, the audio quality was greatly improved. This led to Amplitude
modulated waves becoming the standard for voice transmission.