AN ANALYSIS OF PRODUCT LIFETIMES IN A TECHNOLOGICALLY DYNAMIC INDUSTRY

The conventional wisdom that product lifetimes are shrinking has impor tant implications for technology management and product planning. Howe ver, very limited empirical information on this topic is available. Ln this paper, product lifetimes are directly measured as the time betwe en product introduction and withdrawal. Statistical analyses of deskto p personal computer models introduced between 1974 and 1992 are conduc ted at various product market levels. Results indicate that (1) produc t technology and product model lifetimes have not accelerated, and (2) manufacturers have not systematically reduced the life-cycles of prod ucts within their lines. Instead, the products of firms that have ente red this industry in the more recent years tend to be based on previou sly existing technology, and, not surprisingly, these products have li fetimes that are shorter than those of established firms. Implications of these findings are discussed.