We almost had a smartphone in the 90s. Why did it fail?
Episode
26 min
Read time
2 min
Topics
Career Growth, Productivity, Startups
AI-Generated Summary
Key Takeaways
- ✓The Constraint Paradox: Excess resources kill creative focus. General Magic had funding from Sony, Motorola, AT&T, and others, yet shipped only one product after four years. Tony Fadell later built the iPod in under eight months at Apple, which was $500 million in debt, because financial pressure forced the team to prioritize ruthlessly and eliminate scope creep.
- ✓Define One Specific Customer Problem: General Magic built for a fictional customer called "Joe Sixpack" without identifying a concrete problem to solve. When Tony's mother user-tested the device, she couldn't articulate why she needed it. Before building anything, identify one real person with one specific unmet need — "1,000 songs in my pocket" is the model to follow.
- ✓Brooks's Law on Team Size: Adding people to a late project makes it later, not faster. General Magic kept hiring after delays mounted, compounding inefficiency. When building the iPod, Fadell kept the team lean and set a hard Christmas deadline because Sony was expected to release a competing product that same season, forcing disciplined execution over expansive staffing.
- ✓Borrow Before You Build: General Magic reinvented existing technologies from scratch, including infrared remote technology that had existed for years. Fadell's approach at Apple was to source existing components globally — processors, batteries, screens, hard drives — then assemble and differentiate through software and design, cutting development time and cost while reducing unnecessary engineering complexity.
- ✓Additive Bias Undermines Prioritization: Humans are cognitively wired to add rather than subtract, a bias rooted in evolutionary scarcity. General Magic's calendar function ballooned from four lines of code covering 1904–2096 to spanning the Big Bang to the future. Counteract this bias by explicitly defining what a product will NOT do before development begins, creating a written exclusion list.
What It Covers
General Magic, a Silicon Valley startup founded in 1991, built a functional smartphone prototype nearly two decades before the iPhone. Despite backing from Apple, AT&T, Sony, and Motorola, the device sold fewer than 3,000 units. Journalist David Epstein and Apple/iPod engineer Tony Fadell analyze why abundant resources destroyed the project.
Key Questions Answered
- •The Constraint Paradox: Excess resources kill creative focus. General Magic had funding from Sony, Motorola, AT&T, and others, yet shipped only one product after four years. Tony Fadell later built the iPod in under eight months at Apple, which was $500 million in debt, because financial pressure forced the team to prioritize ruthlessly and eliminate scope creep.
- •Define One Specific Customer Problem: General Magic built for a fictional customer called "Joe Sixpack" without identifying a concrete problem to solve. When Tony's mother user-tested the device, she couldn't articulate why she needed it. Before building anything, identify one real person with one specific unmet need — "1,000 songs in my pocket" is the model to follow.
- •Brooks's Law on Team Size: Adding people to a late project makes it later, not faster. General Magic kept hiring after delays mounted, compounding inefficiency. When building the iPod, Fadell kept the team lean and set a hard Christmas deadline because Sony was expected to release a competing product that same season, forcing disciplined execution over expansive staffing.
- •Borrow Before You Build: General Magic reinvented existing technologies from scratch, including infrared remote technology that had existed for years. Fadell's approach at Apple was to source existing components globally — processors, batteries, screens, hard drives — then assemble and differentiate through software and design, cutting development time and cost while reducing unnecessary engineering complexity.
- •Additive Bias Undermines Prioritization: Humans are cognitively wired to add rather than subtract, a bias rooted in evolutionary scarcity. General Magic's calendar function ballooned from four lines of code covering 1904–2096 to spanning the Big Bang to the future. Counteract this bias by explicitly defining what a product will NOT do before development begins, creating a written exclusion list.
Notable Moment
An engineer assigned to build a simple calendar function kept expanding its date range after colleagues suggested broader historical coverage. What started as a four-line task eventually required the calendar to span from the Big Bang to the distant future — a perfect illustration of how unchecked scope destroys productivity.
Episode Transcript
This message comes from Capella University. That spark you feel, that's your drive for more. Capella University's FlexPath learning format lets you earn your degree at your pace without putting life on pause. Learn more at capella.edu. This is Planet Money from NPR. Okay. How many times have you sat and thought about how much more you could accomplish if you had more, more time, more money, more resources. Like how good your project could be if you had just one more day. Or a bigger budget or more help. Well, this is the story of a company that did have all of that, and they were making something amazing, something most of us touch every day, a smartphone. But, and this is the part that is bonkers, this was happening nearly two decades before the iPhone came out. Before the Internet, before Wi Fi, before mobile data, before cell phones even. Tony Fadell was employee number 29 at that company. Before even email really existed for people, before anything like Amazon or e tailing existed, before downloadable games or downloadable music existed, all of that stuff. We were creating all the technology that would later become what the iPhone was. Nowadays, Tony is a businessman. He's always been a computer geek. His words, not ours. I was making fake IDs on a Mac in high school because he had a laser printer. And a laser printer was like, oh my god. I could replicate things in the world. So I was making fake IDs on a laser printer. He must have been very popular. Oh, yeah. Yeah. I made a lot of money too. Tony was brought up in the seventies and eighties to build things. I was fixing things. I was changing electrical sockets. You're describing yourself as kind of being like a shop class kind of kid. Yeah. My grandfather taught shop class. Oh, seriously? A shop class kid. Okay. He always had the mantra, if a human made it, a human can fix it and build other things too. Tony's favorite thing to tinker with was computers. It was your own world. You could make anything you wanted. And around the time Tony was in high school, mid eighties, computer geeks actually started to become cool. In Rolling Stone, there was a huge article by Stephen Levy about the original Mac team. And I was like, oh my god. There's computer guys like me, guys and gals like me, building this thing that I love, the Macintosh, and they're in a rock and roll magazine. I'm like, superstars. He's 15, and he became obsessed with these computer engineers. Oh, I could be like that. So they were my heroes. And so I would just track them obsessively. Yes. Stalking, you could say. Tony went to college, launched a few startups, and he kept reading tech magazines. And then one day, he saw something buried in the gossipy type pages in the back of one of those …
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