Apple's Newton MessagePad that it launched in the 1990s notoriously flopped in the market but the technology giant managed a major comeback with the global success of its iPad. Peter Parks / AFP
Apple's Newton MessagePad that it launched in the 1990s notoriously flopped in the market but the technology giant managed a major comeback with the global success of its iPad. Peter Parks / AFP

From PDAs to the Atari Lynx: the gadgets that lacked bite



Flash back to 1983 - the year Michael Jackson introduced the world to his moonwalk, Tokyo Disneyland opened and a new electronic device hit the market promising to make life "infinitely easier for you and your family, saving time for the things you really want to do".
Known as Viewtron, the technology linked a television set with a keyboard and phone line, and it was feature-forward in many ways: it could look up bank account information, airline schedules and shop online; plus pull up digital news articles, weather updates and sports coverage.
In short, the Viewtron could functionally do what companies such as Sony, Panasonic and LG have started offering in their Web-connected TVs only in recent years.
But Viewtron's success was limited and it is now regarded as one of many devices that launched before their time. Other systems have disappeared after manufacturers spent millions developing and promoting them but ultimately missed the mark on what customers wanted.
The list of digital duds includes both small and big brands such as Atari, Apple and the Zune from Microsoft, which pulled the plug on its struggling five-year-old MP3 player last year.
Analysts cite various reasons for the death of such devices over the years in a consumer electronics market that has grown to a US$206 billion (Dh756.65bn) in the United States alone.
One of the most common explanations is that tech visionaries and engineers had high ambitions for the kinds of features they wanted to roll out but lacked the computational horsepower to follow through.
"Even today, computational power is a scarce resource," says Jordan Selburn, a senior principal analyst at IHS iSuppli, a research firm focused on the electronics market.
"Take that back to the 1980s when they were trying to do some pretty heavy-lifting types of functions."
Back then, gadgets capable of performing specialised functions such as the scientific calculator or electronic dictionary sold well, especially among students. Relatively newer devices tried to make inroads with varying degrees of success.
Products such as some of the earliest personal digital assistants (PDAs) fascinated early adopters but they ultimately fell short of the blockbuster sales status now enjoyed by the biggest smartphone makers Apple and Samsung.
"The PDA - I remember when I was using mine. It wasn't really intriguing enough," says Julien Pascual, the chief executive and founder of EmiratesAvenue.com, an electronics retailer in the UAE. "It was still quite a lot of work to get information."
In the 1990s, glitchy or unreliable software continued to test the patience of consumers who bought some PDAs.
Apple's Newton MessagePad sold just 50,000 units in the first few months after it went on sale in 1993. The 8-inch, $700 PDA included a stylus to handwrite messages, but its text-recognition software was notoriously inaccurate.
"That takes some lifting and they just didn't have the steroids back then," says Mr Selburn.
In 1998, Steve Jobs, Apple's chief executive, cut the cord on the Newton platform, "even though fans demonstrated in the parking lot of Apple's Cupertino campus", according to an article in the tech publication Wired.
"Apple officials gave them coffee and cookies but refused to resurrect the device."
Other gadgets failed to gain enough traction among supporting players within the tech industry and customers ultimately found alternatives that were more popular - and less expensive.
Such was the case with Atari's Lynx, the first hand-held gaming system to include a colour screen. The $199 device failed to draw enough interest among videogame developers when it debuted in 1989 - the same year Nintendo released its Game Boy for just $109.
While Nintendo went on to sell more than 118 million Game Boy units with its various incarnations, the Lynx failed to show enough bite to become a household brand and was eventually killed off.
Sticker shock over pricing also contributed to the death of the Viewtron, which was created through a joint partnership between AT&T, a US telecoms company, and Knight Ridder, a now-defunct newspaper group. It first sold for $900 then was discounted to $600 when just half of the 5,000 projected subscribers signed on by the end of its first year in operation. The product was discontinued in 1986 after more than $50 million was reportedly lost while expanding the gadget's presence across the US.
Another reason devices such as the Viewtron failed, experts say, is because they debuted well before the proliferation of high-definition screens.
"Until you have HDTV-like resolution, it was just completely unfeasible," says Bob O'Donnell, a tech analyst at IDC, a market research firm. "Once you had that and you had ubiquitous wireless and broadband in the home, at least, you had the pieces in place."
Sharp, high-resolution tablet and smartphone screens are commonplace now and they are endangering another category of devices: the e-reader.
Amazon's Kindle Fire, the latest version of which was announced last month for as little as $159, is a colour tablet. While it can display books, it is not a dedicated e-reader like Amazon's new $119 Paperwhite product, which features e-ink that is easier on the reader's eyes.
Some analysts say more consumers now want to carry around a single device, such as Apple's iPad or another tablet, to display books, email and video, even if it means sacrificing the digital ink in an e-reader.
But that does not necessarily mean e-readers, which analysts say started selling swiftly just four years ago, will go down as the latest digital dud.
"This is Bambi Meets Godzilla - take two," says Mr Selburn.
"The role of Bambi is played by the e-book reader and the role of Godzilla is the tablet," he adds.
"For a product category that's essentially as young as Bambi it's already peaked and declining - it's a successful one."
business@thenational.ae

Nepotism is the name of the game

Salman Khan’s father, Salim Khan, is one of Bollywood’s most legendary screenwriters. Through his partnership with co-writer Javed Akhtar, Salim is credited with having paved the path for the Indian film industry’s blockbuster format in the 1970s. Something his son now rules the roost of. More importantly, the Salim-Javed duo also created the persona of the “angry young man” for Bollywood megastar Amitabh Bachchan in the 1970s, reflecting the angst of the average Indian. In choosing to be the ordinary man’s “hero” as opposed to a thespian in new Bollywood, Salman Khan remains tightly linked to his father’s oeuvre. Thanks dad. 

COMPANY PROFILE

Name: Xpanceo

Started: 2018

Founders: Roman Axelrod, Valentyn Volkov

Based: Dubai, UAE

Industry: Smart contact lenses, augmented/virtual reality

Funding: $40 million

Investor: Opportunity Venture (Asia)

2019 Asian Cup final

Japan v Qatar
Friday, 6pm
Zayed Sports City Stadium, Abu Dhabi

Five expert hiking tips
    Always check the weather forecast before setting off Make sure you have plenty of water Set off early to avoid sudden weather changes in the afternoon Wear appropriate clothing and footwear Take your litter home with you
The 12 Syrian entities delisted by UK 

Ministry of Interior
Ministry of Defence
General Intelligence Directorate
Air Force Intelligence Agency
Political Security Directorate
Syrian National Security Bureau
Military Intelligence Directorate
Army Supply Bureau
General Organisation of Radio and TV
Al Watan newspaper
Cham Press TV
Sama TV

Match info

Uefa Champions League Group B

Tottenham Hotspur 1 (Eriksen 80')
Inter Milan 0

Citadel: Honey Bunny first episode

Directors: Raj & DK

Stars: Varun Dhawan, Samantha Ruth Prabhu, Kashvi Majmundar, Kay Kay Menon

Rating: 4/5

Our legal advisor

Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.

Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation. 

Education: Sagesse University, Beirut, Lebanon, in 2005.

2025 Fifa Club World Cup groups

Group A: Palmeiras, Porto, Al Ahly, Inter Miami.

Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.

Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.

Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).

Group E: River Plate, Urawa, Monterrey, Inter Milan.

Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.

Group G: Manchester City, Wydad, Al Ain, Juventus.

Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.

The bio

Favourite book: Peter Rabbit. I used to read it to my three children and still read it myself. If I am feeling down it brings back good memories.

Best thing about your job: Getting to help people. My mum always told me never to pass up an opportunity to do a good deed.

Best part of life in the UAE: The weather. The constant sunshine is amazing and there is always something to do, you have so many options when it comes to how to spend your day.

Favourite holiday destination: Malaysia. I went there for my honeymoon and ended up volunteering to teach local children for a few hours each day. It is such a special place and I plan to retire there one day.

AIDA%20RETURNS
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ECarol%20Mansour%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3EAida%20Abboud%2C%20Carol%20Mansour%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203.5.%2F5%3C%2Fp%3E%0A

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”