How do you manage expectations for hardware iterations versus software updates?
Not sure if this question is in the context of iterations in terms of product launches or managing expectations internally with your exec.s / C-suite.
Framework for customers-
Make sure that the product iterations are clearly differentiated and provide a clear benefit to the customer. HW purchases are usually typically larger $ amounts (than your monthly SaaS subscriptions for e.g.) and have a longer life with a customer.
Be clear about the benefits from incremental changes versus a fundamental shift. Does the iteration require any change in customer behavior?
Explain backward compatibility (if there is one)
Have a clear GTM, even for small, delta launches.
Internal alignment and managing expectations with Exec.s
Change management is common, both in HW and SW. The big challenge in the HW world, is that 'change' takes a long time. 'Sprints' can be cycles that take months instead of 2 weeks.
The key to managing this successfully, is to plan ahead and build credibility with your C-suite. If you believe you will need 2 proto builds, execute for 2 builds but plan for 3. If your Say-Do ratio is high, you will have an easier time navigating the questions from C-suite.
Managing downwards is also important - Make sure that the team knows what Plan B is if Plan A fails. Communicate to the broader teams as often as you can.