The best kind of new consumer electronics product is not a slight upgrade — which is what most new products in our industry are. Slight improvements with a new model number are for the benefit of the manufacturer.

On the other hand, products that either…

  1. Break new ground (i.e. the Flip video camera; the Eye-Fi wireless SD memory card)
  2. Perfect an existing category (i.e. Amazon’s Kindle; Anything from Apple: iPod, iPhone, the upcoming tablet)

…are for the benefit of the consumer.

Slight upgrades: provide an uncompelling new line of revenue while frustrating consumers that their slightly older model has become obsolete.

Ground breaking or perfected products: Mobilize consumers to spread powerful word-of-mouth.

Which is better?