Kevin Rollins has been CEO of Dell Computer for about six months. A couple of days ago he gave a lengthy interview to CNET, reported under this headline: Dell's Rollins dismisses iPod as a 'fad'.
A fad??? Why would he say that?
"It's interesting the iPod has been out for three years and it's only this past year it's become a raging success. Well, those things that become fads rage, and then they drop off. When I was growing up there was a product made by Sony called the Sony Walkman -- a rage, everyone had to have one. Well, you don't hear about the Walkman anymore. I believe that one-product wonders come and go. You have to have sustainable business models, sustainable strategy."
Ah. Now we know what Kevin Rollins considers a fad: Something you don't hear about anymore. He needs to rethink that definition. And his example.
In fact, the Sony Walkman wasn't a fad, it was a break in the curve, a paradigm shift. It was the birth of a new category of entertainment appliance, a category that's still wildly successful today. It was the start of something big. Rollins would do well to go visit the Sony Web site and read up on the history of the Walkman. An excerpt:
The Walkman created a totally new market for portable stereo systems, and it became a much-loved product around the world. In June 1989, 10 years after the launch of the first model, the total number of Walkman units manufactured had exceeded 50 million, and in 1992 this reached 100 million. In 1995, total production of Walkman units reached 150 million. Including a special 15th anniversary model, over 300 different Walkman models have been produced to date and Sony has remained the market leader.
What made the Walkman so special? A brilliant combination of marketing, design, and technology, even including the name:
The name "Walkman" became virtually synonymous with "headphone stereo" products and it even appeared in respected dictionaries abroad as well as in Japan. In 1981, Walkman was listed in Le Petit Larousse, a well-known French dictionary, and in 1986 the name was included in the Oxford English Dictionary.
Did you catch that phrase, "headphone stereo"? One of the things that made Walkman so special was something it lacked: Speakers. It was a headphone stereo, a product classification that hadn't been invented yet.
And Walkman was distinguished for yet another omission: It was a tape machine with no "record" button. Unheard of! But it drove home the idea that this was a different kind of device.
That's a phenomenon, not a fad. And today, iPod is doing the same thing. By virtue of classy design, great technology, excellent features, and -- not to be underestimated -- good timing, Apple has captured the public's imagination and made people think different(ly) about personal musical appliances. Although iPod wasn't the first portable MP3 player (that honor goes to the Diamond Rio back in the late 90's), "iPod" has become the generic name for its category. 10 years from now, the iPod may or may not still be part of the product stream, but you can bet that "iPod" will be part of the dictionary.
So what's a fad? Well, yo-yo's were a fad, and hula hoops. Bell-bottoms and fat ties were fads. Skinny ties were once a fad, too. Who knows? Maybe they'll return to popularity again some day. On that day, Ralph Nader will be stylish once more. Skinny ties, however, will still be a fad.
Sony's Walkman, though, wasn't a fad when Kevin Rollins was growing up, and Apple's iPod isn't one today.
Unless you want to call Ford's Model T a fad.
Steve
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