Why do companies like Apple, PlayStation, and Xbox, launch new hardware before they’ve manufactured enough to meet initial demand?
In: Economics
Because it would take a much longer time to build more units for launch that could delay it beyond announced launch date/important holiday selling season; because it’s more costly to build more units, especially before they have exact demand–better to keep making more to meet demand than overshoot and have unsold units; logistics are easier distributing units over time vs. single huge launch; because the hype over shortages, reselling, lines of people clamoring to buy one, etc. create publicity to fuel interest
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