Why Big Companies invest in Concept Products?

Millions sometimes billions of dollars are wasted by Companies on Concept Products. But if it is a waste then why big Companies invest in concept products? Before that let us answer what is a concept product?. “A Concept product is a product built by Company to explore new possibilities of innovations and is not meant for consumer use.” If a Product isn’t made for profit then it should be considered waste of money.

All types of Industries are facing stiff Competition especially, the tech industry. The only way for big Companies to stay at the top of the list is to innovate. To innovate they needs ideas which in turn need investment. Concept Products serve a way to explore the reliability of ideas. Concept Products have a high rate of failure. If Companies invest their sale before building and testing a concept product it can blow the whole Company.

Concept Products are like beta testing in Softwares. When the Company is satisfies with the results of their concept device then they implement new tech in their consumer products. Take an example, Samsung never presented a concept of foldable smartphones. Instead they released it to the consumers, we all are witness to the disaster that followed.

Apple invested in Concept of Airpower when they saw it failing they simply dropped the idea. This decision of dropping AIrpower saved ton of money for Apple. A recent Concept device is OnePlus Concept One which seems to be a big success so the Company will take the tech of vanishing camera to its upcoming devices. Another reason to invest in concept products is attention. If a Company earns recognition in people’s mind then its wins the marketing game.