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The period between the first release of a new product and sales of it reaching their highest then falling is getting shorter every year.
Hello, Jey:
I think the sentence is not quite right. Try this:
The period between the first release of a new product and its salesreaching the (their) highest point and then falling is getting shorter every year.
'Its sales' does modify the gerund 'reaching.' You could say 'its sales' ' as a possessive, but in this case, all those -s es would sound and look very heavy.