The phenomenon you're referring to is often known as the "early adopter advantage" or the "innovator's dilemma." It describes a pattern where the initial version of a product or service tends to have higher quality and innovation compared to subsequent iterations.
There are several reasons why this tends to happen:
Competitive edge: When a new product is introduced to the market, the manufacturer aims to differentiate themselves and gain a competitive advantage. They invest heavily in research, development, and quality control to make a strong initial impression and attract early adopters who are willing to pay a premium for the latest innovation.
Market response and feedback: Once the product is in the hands of customers, the manufacturer receives valuable feedback and real-world usage data. This feedback helps identify areas for improvement, potential flaws, and customer preferences that may not have been apparent during the product's development phase.
Iterative development: Armed with customer feedback and insights, the manufacturer can refine the product design, address any shortcomings, and make incremental improvements. These iterative development cycles allow the manufacturer to enhance the product's quality, usability, and performance over time.
Cost optimization: As the product gains popularity and its sales volume increases, manufacturers can take advantage of economies of scale and optimize their production processes. This can lead to cost reductions, enabling them to invest more in quality control and further improve the product's overall quality.
Market saturation and competition: Over time, as more competitors enter the market and the product becomes more mainstream, the focus may shift from innovation and quality differentiation to cost competitiveness. Manufacturers may face pressure to reduce costs, resulting in compromises on certain aspects of quality to maintain competitive pricing.
It's important to note that this pattern may not hold true for every product or industry, and there can be exceptions based on various factors such as market dynamics, competition, technological advancements, and consumer expectations.