Question

What is the incentive to produce newer versions of smartphones for cell phone companies?

Answer 1

Older models are outdated, so the company makes more money from people stayig "up to date" with their phones. Worked for Apple!

Answer 2

Answer is "The chance at high profits in selling the newest version".

Step-by-step explanation:

The chance at high profits in selling the newest version is the incentive for all innovation. The rising price of the newest version, with newer technology and faster service, will create a demand of its own. The quest for profit will keep innovation and will be the incentive for more and better phones in the future.