Silicon Valley has rules about shipping faulty, incomplete products for the first version.
If you are not embarrassed by the first version of your product, you’ve launched too late. – Reid Hoffman
Many companies, including Enterprise IT vendors, take this as a way to charge high prices while they finish the product. Executives readily convince themselves that digital innovation, fail-fast processes and customer feedback is the new business fashion. Its also very convenient to rush a product out the door to get those bonuses.
The original phone immediately struggled as buyers complained about poor camera capabilities, issues with the touchscreen and problems making phone calls. It also didn’t sell well. The phone’s initial price was $699, the same as an iPhone viewed as a competitor. At that price, the company sold as few as 20,000 units across its website and third-party distribution partners, one of the people said. Last October, Essential lowered the price by $200, which boosted sales. – Essential Phone
To summarise: High prices, faulty product and no customers.
Cisco, Oracle, Dell and HPE have solid reputations and long histories of shipping products before they are ready and then sending their sales team out to promote and generate a pipeline. These specific sales are generously funded with accelerated bonuses, large pre-sales teams and lots of executive attention.
But the product most often doesn’t work. It will be buggy, features are missing and, if the product survives this baptism of fire with customers, will be updated continuously for several years.
As a buyer, any decisions to take on a first generation product should be treated like its an unexploded bomb. Because thats what it is. Anything coming out of Silicon Valley uses this model, be careful if you go near it.