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Why do popular gadgets cost more when they first launch?
Updated: 11-Apr-2025

When a gadget first launches, demand often exceeds supply because everyone wants the latest thing. The manufacturer may not have produced enough units yet, creating scarcity. This allows sellers to charge premium prices. Over time, as supply catches up and the hype fades, prices typically decrease.

This strategy also takes advantage of “early adopters” who are willing to pay more. It’s a smart way to maximize profits during the product’s most desirable phase.

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