Graph showing the economic impact of rising manufacturing costs with each product generation. For each product generation, the introductory price is high, but the starting level is assumed not to change. Over time, as newer products are introduced, the price of the existing product(s) must drop. However, the manufacturing costs of each product doesn't change. Furthermore, newer products are more expensive to make (due to process complexity, new materials consumed, etc.). Thus, the product margins are expected to decrease, as indicated by the dashed curves.