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by Anasufovic 3524 days ago
I think we know which path leads to better sales.
2 comments

Both, depending on where in the company lifecycle the sales happen.

The upstart, by virtue of simply not yet having that many potential repeat customers around, is targeting first time buyers. The goodwill created by having as little obsolescence as possible far outweighs the extra sales they might get through it. This tradeoff changes significantly once a company is established and the number of potential repeat customers is high. Now it's always a balance between repeat sale likelihood and repeat sale cycle duration.

Different forms of obsolescence have different effects in different markets. E.g. unlike smartphone makers, car manufacturers tread very carefully when it comes to longevity. Red book value and all that. So what do they do? They have perfected the generational model update cycle. New generation cars are literally designed to make the predecessor look old, because that is the most acceptable repeat sale driver. Tesla just isn't there yet.

And which path leads to buyers remorse.
It's similar to iPhones, countless complaints yet those same people keep buying them.
Really? iPhones seem to have somewhat predictable cycles. I have owned 4 and every time I pretty much knew when a new one would come out.
iPhone 7s or maybe iPhone 10 will ship around September 20th 2017.