We almost had a smartphone in the 90s. Why did it fail?
Summary
This episode explores the rise and fall of General Magic, a 1990s startup that built a smartphone-like device two decades before the iPhone. Despite having top talent and unlimited funding, the company failed due to a lack of constraints, clear customer focus, and deadlines. Hosts interview former engineer Tony Fidel and author David Epstein, who argue that limits foster creativity. The story contrasts General Magic’s chaos with the disciplined, constraint-driven success of Apple’s iPod and iPhone.
Topics discussed
Sponsor message from Thumbtack
Introduction: Tony Fidel and the pre-iPhone smartphone
Planet Money intro and sponsor messages
General Magic: The dream team with unlimited resources
The failure of the Sony Magic Link device
Lesson 1: Lack of a clear customer or problem
Lesson 2: Too much money and scope creep
Lesson 3: No deadlines or management constraints
Sponsor messages from Cook Unity, Grainger, and ActiveCampaign
Tony Fidel applies constraints to build the iPod
The psychology of constraints and additive bias
Listener call to action and closing credits
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