Case file: a category that formed
Why did General Magic fail, and when did the smartphone become viable?
Formed since 2026-10-25 · ledger #60
Multitouch, low-power ARM chips and 3G converged in 2007.
Short answer
General Magic (1990) designed a pocket communicator with apps, email and software agents. Its Magic Cap devices shipped in 1994 and sold poorly; the company ceased operations in 2002 and was liquidated in 2004. The parts it needed (capacitive multitouch, efficient ARM chips, 3G data) arrived together around 2007, the year the iPhone launched; General Magic alumni helped build both the iPhone and Android.
- Killing constraint
- Multitouch, low-power chips and mobile data
E3 Device install base - Crossing
- 2007
iPhone ships with capacitive multitouch on an ARM system-on-chip; 3G networks spread. - Who won
- iPhone (Apple)
founded 2007
1994 hardware could not run a pocket computer with a usable screen, a full day of battery and a data connection.
Graveyard
Companies that died proving people wanted this. Capital shown where it was disclosed.
| Company | Years | Capital | How it died | Source |
|---|---|---|---|---|
| General Magic | 1990–2002 | — | Ceased operations in September 2002; liquidated in 2004 | source M |
Who won once the constraint crossed
- iPhone (Apple) (founded 2007) — launched June 2007 source
What changed, dated
- Android (co-founded by General Magic alumnus Andy Rubin) shipped its first phone in 2008. source M