Well obviously their mistake was to make a new model instead of continuing with the AK-47. By the way, is the AK-47 still made anywhere in the world?
I ask because sometimes good first world products are still made for decades afterward in developing countries. Some cases in point:
The Hindustan Ambassador, modeled on the Morris Oxford III of the late 1950s:
The Khodro Samand of Iran, modeled on the Peugeot 405 of the late 1980s/early 1990s:
The ambassador is a crap car. Though the socialists in India still like it. The normals have moved on.