In what phase of the Product Life Cycle do revenue peaks occur?

In the Product Life Cycle, revenue peaks typically occur during the maturity phase. This phase is characterized by widespread market acceptance of the product and a maximum number of sales. At this point, the product has already gained a significant share of the market, and competition is intense. Companies often implement strategies to maintain their market position, such as enhancing product features, improving customer service, or adjusting pricing strategies.

During maturity, customers are fully aware of the product, and repeat purchases become the norm, contributing to the revenue peak. This phase represents a stable demand where sales growth slows down, but the volume remains high, leading to optimal revenue levels. Consequently, businesses aspire to prolong the maturity phase as long as possible to maximize profits before entering the decline phase, where revenues typically decrease due to market saturation, changes in consumer preferences, or the introduction of superior alternatives.