Question

Sales of mobile phones in the United States are still increasing, but the rate of growth has slowed. Sales are expected to peak somewhat soon in the U.S. Based on this information, mobile phones are in what stage of the product life cycle in the U.S.?

Answer 1

Answer:

maturity

Explanation:

The four stages of a product's life cycle are:

1. introduction: the product has just been released, sales are slow since not too many customers know the product, but marketing expenses and efforts are significant.
2. growth: consumers have accepted the product and its sales are booming, but so are out competitors that will enter the market in search of their own share.
3. maturity: sales peak at this stage, the product is well consolidated and competition is fierce because everyone is trying to grab a piece of their competitor's market share. In order to retain or expand market share, companies launch several variations of the product. This stage is the most profitable and depending on the product, can last a few months to many years (e.g. Coke)
4. decline: sales start to fall as the product is considered obsolete. Eventually sales will decrease so much that the product line will be terminated.

Cell phones have been selling for many years now (almost 40 years), and every time sales start to fall some new innovation is introduced and sales rise again. Although the last great innovation was the iPhone and that was 13 years ago.

Answer 2

Answer:

maturity

Explanation:

Based on the scenario being described within the question it can be said that the mobile phones are in the maturity stage of the product life cycle. This stage is classified as having past the drastic growth phase in which sales begin to slow down until full maturity is met and sales ultimately begin to die down. Leading to the decline stage.