{"id":16744,"date":"2020-10-06T18:29:00","date_gmt":"2020-10-06T22:29:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=16744"},"modified":"2020-11-07T15:08:10","modified_gmt":"2020-11-07T19:08:10","slug":"apple-pda-innovators-dilemma","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/apple-pda-innovators-dilemma\/","title":{"rendered":"The Apple PDA: A Lesson in Starting Too Big"},"content":{"rendered":"\n<p>What is the Apple PDA? What can you learn from the Apple PDA about disruptive innovation?<\/p>\n\n\n\n<p>The Apple PDA, also known as the Apple Newton, is a case study in failed disruptive innovation. Truly new products don&#8217;t have an established market so you can&#8217;t start too big.<\/p>\n\n\n\n<p>Read more about the Apple PDA as a case study in scaling disruptive innovations.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\">Forcing Market Growth With the Apple PDA<\/h2>\n\n\n\n<p>Projects that are perceived to be successful garner more organizational and financial support, which helps them to progress to higher <a href=\"https:\/\/www.shortform.com\/blog\/levels-of-success\/\">levels of success<\/a> and profitability. By contrast, projects that are perceived as failures simply languish. <strong>To give a <a href=\"https:\/\/www.shortform.com\/blog\/disruptive-projects\/\">disruptive project<\/a> the best chance of long-term success, a company must assign it to a team and organization small enough to appreciate small victories.<\/strong>&nbsp;<\/p>\n\n\n\n<p>When Apple developed a disruptive personal digital assistant (PDA), instead of taking this approach and assigning the project to a <em>small team<\/em>, the company tried to make the <em>market bigger<\/em>. By the time Apple decided to make an Apple PDA, called the Apple Newton, the firm was a $5 billion public company that faced pressure to continue growing. Apple was determined to make the Apple Newton a success.&nbsp;<\/p>\n\n\n\n<p>Apple\u2019s CEO made a huge effort to promote the Apple PDA and keep resources focused on its development. The company also invested heavily in market research to find out what features customers would want.&nbsp;<\/p>\n\n\n\n<p>However, Apple PDAs were a disruptive technology. Since disruptive technologies offer novel functions, their users don\u2019t <em>know<\/em> what they want or how they\u2019ll use the products\u2014until they start using them. <strong>Disruptive innovations require trial and error before they appeal to a larger customer base, and that takes time.<\/strong> Apple couldn\u2019t effectively shortcut this process with market surveys.\u00a0<\/p>\n\n\n\n<p>Apple\u2019s impatience cost the company a lot of money on multiple ineffective efforts:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Extensive market research to try to determine what customers wanted<\/li><li>Development of complicated technology based on the market research, not on actual usage<\/li><li>Aggressive marketing to push people to buy the product<\/li><\/ul>\n\n\n\n<p>The Newton sold 140,000 units in its first two years, which was considered a failure for such a large company. (Shortform note: The Newton had some traction in the medical field, but it lost most of the PDA market when the Palm Pilot was introduced. Steve Jobs had the Newton discontinued in 1998, five years after its release.)<\/p>\n\n\n\n<p>However, <a href=\"https:\/\/www.shortform.com\/blog\/fail-to-succeed\/\">failure and success<\/a> are relative: Fifteen years earlier, Apple sold just 43,000 units of a then-disruptive technology and considered it such a big success for the fledgling company that it went public. <strong>The perceived <a href=\"https:\/\/www.shortform.com\/blog\/failure-is-a-part-of-success\/\">success and failure<\/a> of the two product launches were relative to the size of the <em>company <\/em>at the time, when they should\u2019ve been viewed relative to the size of the small, emerging <em>markets<\/em>.&nbsp;<\/strong><\/p>\n\n\n\n<p>The Newton may have reached more success if the company had been willing to go through the necessary trial-and-error process to fine-tune the product and find <a href=\"https:\/\/www.shortform.com\/blog\/target-the-right-market\/\">the right market<\/a>, but leaders couldn\u2019t get past the perception of failure. It\u2019s extremely difficult for company leaders to view a product\u2019s success in the context of the market instead of the context of the company\u2014which is why<strong> Apple should have created a smaller, independent organization to develop and launch the Newton.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is the Apple PDA? What can you learn from the Apple PDA about disruptive innovation? The Apple PDA, also known as the Apple Newton, is a case study in failed disruptive innovation. Truly new products don&#8217;t have an established market so you can&#8217;t start too big. Read more about the Apple PDA as a case study in scaling disruptive innovations.<\/p>\n","protected":false},"author":6,"featured_media":17138,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,34,14],"tags":[141],"class_list":["post-16744","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-communication","category-management","tag-the-innovators-dilemma","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Apple PDA: A Lesson in Starting Too Big - Shortform Books<\/title>\n<meta name=\"description\" content=\"Have you heard of the Apple Newton? If not, you&#039;re probably not alone. The Apple PDA was a failed innovation. Read about it here.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shortform.com\/blog\/apple-pda-innovators-dilemma\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Apple PDA: A Lesson in Starting Too Big\" \/>\n<meta property=\"og:description\" content=\"Have you heard of the Apple Newton? If not, you&#039;re probably not alone. The Apple PDA was a failed innovation. 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