> As customers start to realise that the competition offers better functionality at a lower price, by negotiating a better subsidy, sales will stagnate. After a year a new version will be launched, but it will lack the innovation of the first and quickly vanish.
There was a good few years there where everyone was looking for the "iPod-killer". There's even a chance the Zune would have got there, except by time they got close .. that's not where the puck was.
But I always found it interesting that after all that search for the "iPod-killer", none was ever crowned - instead the entire market just slipped silently into the night.