Life Cycle of Computer Hardware

The product life cycle can be divided into 5 different stages.
external image 20060328.product_life_cycle.gif

Stage 1 : Product Development

Product development is a very secretive proccess. Code names are used to keep product information secret until annoucement.

Stage 2 : Product Announcement

Announcement is when the company tells the press that they are planning on introducing. This often takes place at trade shows and other events where industry big wigs are present. The announcement is not final and some products that are announced aren't even produced. Changes may also occur to the final product after announcement and before introduction.

Stage 3 : Product Introduction

Introduction is when the product actually becomes avalibale to the consumers. The product is often introduced at a big party, especially big products from big manufactures. Upon announcment, supply of the product is low and cost is high in order to make a big profit. While one product is being introduced the newest product is in development.

Stage 4 : Maintenance

During the maintenance stage, the supply catches up to the demand and the price decreases slightly. So, in order to make a profit, the manufacturer sends the product over seas to be made at a much lower cost. A new and better product is usually announced during this time.

Stage 5 : Retirement

Once demand has almost dispeared, the product is retired for the product lin and is replaced by a newer and better product.