The stage of the product life cycle where sales and profits drop new products replace older generations is called

Answer

Decline stage

Explanation:

It is called the decline stage. That is the stage after product maturity when such product has attained its peak demand and begins to fall. At the decline stage, another product of similar sort begins to rage the market thereby, acting at a competitive advantage over the previous product.

During decline, sales growth becomes negative, profits decline, competition remains high, and the product ultimately reaches its 'death'.

it is during this phase that new technologies will replace old, and dying technology and start a new product life cycle.