Failure of Apple Newton


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The failure of Apple Newton was analyzed - why it failed and flagship factors for it were found based on timing of entry and design dominance.

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Failure of Apple Newton

  1. 1. IMEN301: Homework #2 Apple Newton Group #4 Christina Lehmann Neelotpal Shukla Nijansh Verma
  2. 2. Apple was both the Research Pioneer & the Market Pioneer However, the following factors caused the failure of Apple Newton as a first mover but success as a second mover.
  3. 3. Wi-Fi 2G Mobile Data Dotcom Bubble 3G Mobile Data Launch of major internet services.
  4. 4. Wi-Fi 2G Mobile Data All major internet All connectivity and internet services services achieved critical mass much afterwere also the release of Apple Newton quite late. 3G Mobile Data . Result: Limited Functionality of Newton
  5. 5. 1990s: People were still getting used to computers and their applications. 2000s: People were familiar with computer and touchscreen phones ensured there is no learning curve for iPad.
  6. 6. 2G Mobile Data Apple to Wi-Fi All major Newton was too ahead of its time internet services satisfy the requirements of consumers were also at that time. quite late. 3G Mobile Data Result: Customers neglected it because of its ambiguity in usage.
  7. 7. Key technological factors that resulted in product failure
  8. 8. Too many and unfulfilled information at a too early stage. The marketing and PR strategy had completely been mismanaged and led to Apple’s innovation failure. 2 major mistakes in the strategic maneuvering can be identified: 1. The marketing announcement of Apple’s new device built stellar market expectations but resulted in a product that sorely disappointed the market.
  9. 9. 1991: Apple Newton was presented as: “The 1st personal digital assistant: handy w/ touch screen, handwriting-recognition and all-round applications for individual information management.” 1993: Apple Newton was launched as: an overpriced electronic companion: too large and heavy to be pocket-sized and too short lifetime/ slow processing speed to be handy, inaccurate hand-writing recognition w/ limited dictionary. Result: Although the technology was still very innovative, costumers expected a more revolutionary device.
  10. 10. 2. In 1991, two years before the first device was shipped, the concept of Apple Newton was introduced to public. The early presentation forced the company to quickly produce the first device with its very complex and wideranged software. Result: Semi-finished product as pointed out in the first problem.
  11. 11. Newton had no switching cost, going strictly by definition, since it was an entirely new concept. However, priced quite steeply at $700, its value was often questioned and compared with relatively much cheaper paperbased planners and address books that it was a replacement for. Considering this, the Newton can be said to have a very high switching cost.
  12. 12. Too slow development cycle: After Apple had released a very disappointing MessagePad 100 they corrected and improved their features (handiness, touch-screen, practical desktop synchronization) and core competency (hand-writing recognition) in MessagePad2000.
  13. 13. However, it took the company 2 years to release a successful remodeled device due to a slow/ immature engineering and manufacturing process. At that time customers already found other fulfilling devices plus the negative image of their prior products could not have been offset.
  14. 14. • • • Network Effects: Newton was a first of its kind standalone platform which was compatible with all the prominent document file formats and a large variety of computer operating systems. – POSITIVE Technology field: Although there were actors including Motorola and Sharp in the market, most devices were produced by Apple. The level of cooperation was higher than the level of competition. – POSITIVE Regime of Appropriability and Regulation: Newton was not much affected by either of these two factors, largely because to its uniqueness and novelty. – NEUTRAL
  15. 15. In contrast to Apple Newton
  16. 16. Thank You