While designing a digital solution is considered to be an iterative process, designing a is not as iterative as one would expect. A physical product having a better iteration usually means a newer model of the same product which admittedly would be better, but would also cost the consumer more money to purchase. A good example here would be your smartphone which has different models with varying upgrades and specifications. The apps can easily be updated, however, the phone itself ahs to be changed if you want something better.
So having to make sure EVERY part of the product works perfectly is something that is greatly emphasized in the industrial/consumer product development process.