Product Curve

This article is the translation of its Chinese version.

We introduce the concept of Product Curve to indicate Personal Terminal Products market. Personal Terminal Products is the common name for all personal digital products like smart phone, iPhone, digital camera, PC, laptop, iPad, etc. The curve shows from product purchase to die out, and X-axis means years since you purchase. Y-axis means the favorite degree. Red line means the cheaper product.

In the first two years, the people still like their “new” products, and don’t replace them so soon. But after two years, the favorite degree reached the summit, and start going down, the user will start looking for the replace product in the market. You can see the low price product will be easier to be replaced, but even expensive one will also be replaced in 7 years (the 7 year itch).

Therefore, the product curve can be used to guide the personal digital product development cycle, investment, price, and profit. And this curve can explain why the Apple product choose their new products release cycle, so Apple can earn maxim profit, and meanwhile increase the number of Apple Fans. Also very important, they make the people like to re-purchase new products to replace their old.

There is no other company can like Apple company, many people’s first phone might be Nokia, but next phone may change to Sumsung, but Apple users seldom change their brand. Because the new generation product is the best choice as the replacement.

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About qianggan

Sr. Software Engineer
This entry was posted in Computers and Internet, News and politics. Bookmark the permalink.

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