Product Replacement and Upgrade

Product Replacement and Upgrade - OCTOBER 12, 2005 Business...

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OCTOBER 12, 2005 Business Week Did Jobs Kill the iPod mini Too  Soon?  Maybe not. His decision to jettison the hot-seller in favor of the nano equals just the kind of tough love that has kept Apple so hot A harsh law of the high-tech jungle says only those companies willing to kill off their most successful products to make room for even better ones can hope to remain on top. Few chief executives actually follow that tenet, however. One of the exceptions is Apple Computer's ( AAPL Steve Jobs. But then, Jobs isn't your typical CEO. He showed why a month ago, when he announced the supercool iPod nano on Sept. 7. That day, Jobs also announced that Apple had discontinued the iPod mini -- as of that day Apple's single hottest product. "AUDACIOUS." It was a remarkable decision, with few precedents in the annals of tech. After all, Apple had introduced the iPod mini just 19 months earlier, and sales were showing no signs of slowing down. Rather, it served as the mainstay of one of the hottest, most influential new-product lineups in tech history. In the quarter that ended on June 30, the diminutive device brought in roughly 60% of the iPod's $1.1 billion in revenue. And if the discontinuation looked like a bold move from a strategic perspective, it was just as audacious in operational terms. Sure, cutting off the iPod mini cold turkey is easier in many ways than winding down sales as demand waned. The trick, however, would lie in ramping up production
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Product Replacement and Upgrade - OCTOBER 12, 2005 Business...

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