In regards to your first point, Imagine you are in the market to buy a new phone. Two flagship devices just came out, one from a well estaished brand that is

In regards to your first point, Imagine you are in the market to buy a new phone. Two flagship devices just came out, one from a well estaished brand that is a solid contender, and another from a company that is new to smartphones and had traditionally competed in other product areas. The new entrant's product is superior and priced competitively. You read that the established player is spending a record 300 million on advertising for their latest flagship. Meanwhile the new entrant, despite having a large corporation behind it, has not made any major announcements about its ad campaign, nor for that matter have you really heard much buzz outside of enthusiast circles. At some point you'll realize the new product is DOA.