Why do companies like Apple, PlayStation, and Xbox, launch new hardware before they’ve manufactured enough to meet initial demand?
In: Economics
Its beneficial to be the first to market with new technology, even if you can’t sipply enough to meet demand. That creates a shortfall, which increases demand even more.
These companies are competing directly with each other, and are in a constant race to release a new innovation before the other one does. Since they generally have access to the same technology, it’s all about who packages it into their product and gets it to market first.
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