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Originally Posted by Penny
I agree with most of what you said. In summary, if a product has a better margin but sells fewer units, the profit will not necessarily be higher. However, I didn't assume that consumers will automatically buy the Colour. In fact, my first paragraph implied that consumer demand will be the driving force for the future of Libra models.
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You have no idea if any of that is true. Also profit per item is not so important, it's item qty x net profit after all costs. Also no-one outside of Kobo knows the costs of each model.
Quote:
Originally Posted by Penny
"Consumers play a crucial role in influencing accounting metrics by accepting or rejecting new products, thereby shaping the market."
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Not in the real world. Not often.
Consumers can want a profitable product and a company kills it anyway. Seen it loads of times.
Quote:
Originally Posted by Penny
If the Libra Colour experiences extremely poor sales, then no matter how good the margins are, the company will be highly incentivized to revert to the BW model. Public companies work for the shareholders, and consumer wallets ultimately drive future business decisions.
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No. Politics or stupidity. Plenty of case studies on this.
You are making statements based on simplistic introductory texts and doctrine and also assuming companies are run rationally by people who understand what they doing.
None of what you write might be true. Decisions on which products to sell can be based on politics, a whim, mistaken analysis and many other factors.