Drop in sales of a company prematurely announcing a future product
The Osborne effect is a social phenomenon of customers canceling or deferring orders for the current, soon-to-be-obsolete product as an unexpected drawback of a company's announcing a future product prematurely. It is an example of cannibalization. The term alludes to the Osborne Computer Corporation, whose second product did not become available until more than a year after it was announced. The company's subsequent bankruptcy was widely blamed on reduced sales after the announcement.[1][2]
^Osborne, Adam; Dvorak, John C. (1984). Hypergrowth: the rise and fall of Osborne Computer Corporation. Idthekkethan. ISBN 0-918347-00-9.
^Grindley, Peter (1985). Standards, strategy and policy: cases and stories. Oxford University Press. ISBN 0-19-828807-7.
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