Profit Potential of the Product Life Cycle

Every product has a life cycle and the various stages of this can produce different profit margins and as such it is best to be aware of the product life cycle when looking at your selling margins going forward, first lets define the Product Life Cycle:The timescale within which a product is introduced leading to a growth in sales, before sales mature and begin to decline, possibly even ending in the product being withdrawn.So as can be seen there are four clear sections which I will discuss further using the pending launch of the Sony Playstation 3 as a working example, we all know the Playstation 3 is coming, developer releases and games conferences have seen examples and demos which has meant that the press have latched on and the hype is starting to grow. So much so that to say it is going to be a hot product is an understatement.