Asymco: Is the iPhone good enough?
Horace Dediu asks this question from the viewpoint of disruption theory, where if you are trying to make better something, that’s good enough from perspective of some customers, you are creating a room for being disrupted.
The clue to this experiment is the presence of a control group. We could test the question of absorbability by by keeping a version of the product which did not improve (or got cheaper) and measuring whether is performs better vs. the “improved” version.
Of course, this is exactly what Apple does with the n-1 generation products. By ranging products which are older and at lower price points it can measure whether the improvements are valued.