Winchell
Member

Registered: Oct 1999
Location: Baltimore MD, USA
Posts: 717 |
quote: Originally posted by yardie:
I would be very surprise and somewhat disappointed if Handspring does not come out with a new unit in time for the Christmas season.
Yes, but Handspring has to be wary of the "Osborne effect."
Back in the early 1980's, Adam Osborne came out with the first mass market portable computer, the Osborne 1. It sold like gangbusters, partially because it had a new concept: bundled software! Business people snapped them up because it came with everything you needed to use it right out of the box, no assembly required.
Adam Osborne became a millionaire.
Then he lost it all due to the Osborne effect.
The computer had only been on the market for less than a year, when he announced that his company was coming out with a new improved model.
Naturally, sales of the original model dropped like a lead balloon as people waited for the new one to come out. At the Osborne company, the cash stopped coming in.
So when there was a delay in designing the new model, the lack of cash inflow caused the company to go bankrupt.
[This message has been edited by Winchell (edited 07-24-2000).]
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