Product Life Cycle
Every product has a limited life. Product life cycle describes the profit and sales earned by a product over its whole life. There are fives stages: product development, introduction, growth, maturity and decline. iPhone is a new technology advance and it has already gained a favorable result in the market. Therefore, it should be in the growth stage now.
On April 2003 our CEO believes that cell phones were going to become important appliances for portable information access. That’s why we entered the cell phone market and it is the product development stage. At that time, iPhone had not yet been launched and was still developed in progress. We continuously generated new ideas.
After long period of development, iPhone has finally been available and comes to the introduction stage. In this stage, we have to raise the awareness of public and attract more customers. In January 9, we introduced the function of iPhone at the Macworld convention and invested lots of money in advertising through posters and TV commercials. The promotion and distribution cost are very high while the sales growth are low. It is because few people had confidence in trying new products. Only the portion of early adopters such as strong Apple brand loyalty technology followers would buy iPhone at this time.
Following introduction stage, it is growth stage. Since iPhone is gaining the popularity and good reputation, people are more willing to buy. Thus, sales volume and profit increase rapidly. From the BetaNews file forum, appendix 1, 500,000 iPhones had been sold nationwide over the weekend. The articles, Appendix 2, also shows iphone is our fastest product to be sold out, giving over 1 million sales. To cater the rapid growth of business, we have increased distribution stores over 4 countries in half year.
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