It is expensive for electronics manufacturers to launch a new product. To save money, manufacturers will often revise an existing product already in the market. (Read about trends in new product launch services)
How can electronics companies weigh the costs of R&D and building a new product plus, new product launch costs against the cost, and possible savings, associated with revising an existing product already in the market? Answering this question depends on many factors.
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Electronics manufacturers weigh the cost of building a new product against the cost of revising an existing product by considering factors such as the potential market demand for the new or revised product, the costs of research and development, manufacturing and production costs – and sales and marketing – as well as the expected profit margin.
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Margin and demand can also both be cyclical in some industries and markets so this must also be taken into consideration.
Additionally, manufacturers also have to consider factors such as the lifecycle of the existing product, the level of competition in the market, and any technological or regulatory changes that may impact the product’s performance or sales.
Ultimately, the decision to launch a new product or revise an existing one is based on a careful analysis of the costs and benefits of each option, and the manufacturer’s overall business strategy and goals. If the manufacturer’s new product is being launched by a contract manufacturer, you are then faced with comparing quotes during the request-for-quote phase to find the best solutions provider who can optimize program total landed cost.
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