Huge companies are always evolving, looking at a new product they can introduce to the market to bring in more cash and enhance their reputations.
However, sometimes this goes wrong – very wrong, leading to a lot of money spent, not much money made, and a lot of bad press.
Here, we examine some of the most infamous product flops that ended up costing their companies millions, if not billions, of dollars.
The Failure of New Coke
One of the most notorious product flops in history is the introduction of New Coke by Coca-Cola in 1985. Under pressure to outshine its competitor Pepsi, Coca-Cola decided to reformulate its flagship drink.
The new version was sweeter, and was expected to win over consumers, but the move backfired spectacularly. Loyal customers were outraged that their beloved Coke had been altered, leading to a massive backlash.
Just 79 days after its launch, Coca-Cola was forced to bring back the original formula, now branded as “Coca-Cola Classic.” The entire episode is estimated to have cost the company around $30 million in unsold inventory and rebranding costs. However, the long-term impact on brand loyalty was arguably even more damaging.
New Coke can be seen in the Netflix series Stranger Things, and Coke even has a section of its website dedicated to the disaster, showing an unusual ability to laugh at itself.
Apple’s Newton Misstep
Before the iPhone became a global sensation, Apple attempted to make waves in the personal digital assistant (PDA) market with the Newton. Launched in 1993, the Newton was ahead of its time but marred by significant flaws, particularly its unreliable handwriting recognition software. This flaw became a major source of ridicule and ultimately contributed to the product’s downfall.
The failure of the Newton cost Apple approximately $100 million. This was a massive amount during a period when the company was already struggling financially. By 1998, the Newton was discontinued, marking one of Apple’s rare but costly mistakes.
Microsoft’s Zune – A Missed Opportunity
Microsoft’s attempt to rival Apple’s iPod with the Zune ended in failure. The music player was Introduced in 2006, but failed to capture the imagination of consumers who already loved the iPod. Bill Gates’ company spent a lot on marketing and development but the Zune never gained significant market share and was eventually discontinued in 2011.
Analysts estimate the Zune cost Microsoft upwards of $289 million in losses.
Ford Edsel – A Cautionary Tale
The Ford Edsel is often cited as the quintessential product failure in the automotive industry.
It was launched with much fanfare in 1957 and was supposed to be the car of the future.
The problem was it didn’t work very well. It was also launched at the same time as a massive recession in the US. This led to terrible sales. Ford stopped production in 1960, with colossal losses of around $350 (around $3.1 billion today).
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The Juicero Debacle
In 2016, Juicero Inc. introduced a Wi-Fi-connected juicer that sold for $400, requiring proprietary juice packs to operate. However, it was revealed that the expensive machine did nothing more than what could be achieved by simply squeezing the packs by hand – leaving it completely pointless.
A brutal backlash followed, and Juicero became a laughing stock in the tech community. The company shut down in 2017, after burning through $120 million in venture capital. The Juicero debacle is a classic example of a product that over-promised and under-delivered.
The Galaxy Note 7 Fiasco
Samsung’s Galaxy Note 7 initially received rave reviews when it was launched in 2016. But major issue were quickly revealed when numerous reports surfaced of the phones catching fire due to battery defects.
How this wasn’t spotted during testing is not known, but Samsung then compounded matters with a botched recall of the phones. A second recall was carried out and then the
However, it soon turned into a nightmare for the company when reports surfaced of the phones catching fire due to battery defects. Samsung’s attempt to resolve the issue through a global recall was mishandled, forcing the company to issue a second recall and eventually discontinue the product entirely.
The Galaxy Note 7 debacle cost Samsung an estimated $5.3 billion in losses and inflicted significant damage to its brand reputation. This incident highlights the importance of thorough product testing and quality control.
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Harley-Davidson’s SuperGlide FXRT Flop
Harley-Davidson is a brand synonymous with rugged, iconic motorcycles, but the SuperGlide FXRT was a rare miss for the company. The bike launched in 1983 and was intended to appeal to younger riders, but it was rejected by Harley’s core customers, who viewed it as a departure from the brand’s traditional image. Sales were poor, and the model was discontinued. This cost the the company millions in lost revenue and development costs. .
Nintendo Virtual Boy – A Visionary Failure
Nintendo is known for its iconic NES, SNES and Wii, but not every console has been a success. The Virtual Boy, launched in 1995, was definitely not one of these successes. This early attempt at virtual reality gaming was marred by a monochrome display, uncomfortable design, and a limited game library. Gamers were unimpressed, and the product failed to gain traction in the market. Less than a year after its release, the Virtual Boy was discontinued. This is resulted in a loss of around $50 million for Nintendo.
Amazon Fire Phone – A Rare Misstep
Amazon is an extraordinary, ever-growing machine, which has led to its founder Jeff Bezos becoming the world’s richest person and leading the race to become the world’s first trillionaire.
Most of its products tend to be a big successes, but one attempt very much failed. In 2014, bosses decided to enter the ferocious smart phone market by developing the Fire Phone. It was criticised for being expensive, a lack of apps and a baffling user interface.
The phone was scrapped, and left Amazon with a loss of $170 million in unsold phones and inventory costs. It was quietly discontinued in 2015.
