Question

Sales of cell 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, cellular phones are in what stage of the product life cycle in the U.S.?
(a)-growth
(b)-maturity
(c)-decline

Answer 1

Answer:

Answer b) is correct.

Explanation:

The cellular phones are in the maturity stage of the product life cycle. In this stage, the costs of the products are relatively low so that a peak in sale volume occurs.

Answer 2

Answer:

B) maturity

Explanation:

The product life cycle is broken into four stages:

1. introduction
2. growth
3. maturity: total sales volume tend to peak at this stage, and the market is saturated with different competitors. Since there are a lot of competitors trying to grab a larger share, profit margins shrink, and alternative products are introduced. Companies fight to either keep their existing market share or try to gain a portion of a competitor's market share. This stage can last a short time or many years depending on the product and how the company reinvents itself, e.g. Coke, Tide
4. decline