Vicious / virtuous cycles

There are some vicious & virtuous cycles in using a lot of products.

Samsung and Apple make a lot of phones. Thus, they can reduce some of the costs by repeating some things. It’s generally cheaper to produce more of a thing.

Also, they can invest some profits into research.

If there’s a newcomer in the smartphone industry, they could have low prices to have a successful product. However, this will lead to low profits and low budgets allocated to research. This will bring low-quality products and fewer sales.

If a company invests in research, it will likely have better products, but it will need to increase the prices, which will reduce sales and, again, result in low profits.

It’s a big advantage – being the first in a niche.

It’s also a big advantage to be able to produce a lot of pieces of the same product.

Jonathan Cutrer - iPhone 11 Pro Max
Jonathan Cutrer – iPhone 11 Pro Max,

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