Cart (0)
VIDEOOverhyped Products: Segway
By
Josh Lipton Sep 28, 2009 8:05 am
A scooter ride to nowhere.
 |
|
The subject of this fawning hype? An electric scooter called the Segway.
The inventors and money men behind the two-wheeled machines generated big buzz when they first began selling the product in November 2002. The Segway wouldn’t just serve as some expensive toy for tech geeks with fat wallets, they told us. No, this machine would fundamentally transform how men and women traveled all over the world, as urban centers banished cars in favor of “empowered individuals” riding high on their futuristic scooters.
But, fast forward seven years, and Segway hasn’t glided to the world-changing success its founders predicted. The technology worked and the machines proved as efficient and eco-friendly as the company envisioned. However, the Segway never lived up to the hype: Americans didn’t buy the device in revolutionary numbers and, when traveling to work or the office, they still prefer a car, a bike, or their own two feet.
Dean Kamen is the Dr. Frankenstein behind the Segway. An eccentric, oddball genius, Kamen is a college dropout and self-taught physicist who made a name and fortune for himself engineering a string of successful medical device products: the first drug-infusion pump, the first portable insulin pump, the first portable dialysis machine, an array of heart stents, and a wheelchair that can climb stairs.
In July 1999, Kamen put his big brain to work when he founded a new company with the vision to develop highly-efficient, zero-emission transportation solutions. The goal: create a machine that was relatively compact, extremely maneuverable, and capable of cruising on pedestrian sidewalks and pathways.
On November 18, 2002, the first Segways went on sale to the public on Amazon.com (AMZN). Kamen and his crew believed the two-wheeled wonders, developed at a cost of more than $100 million, would prove an engineering marvel that would change the very way cities the world over organized themselves.
“There is no question in my mind that we have the right answer,” Kamen told Time magazine in an interview in December 2001. “I would stake my reputation, my money, and my time on the fact that 10 years from now, this will be the way many people in many places get around.”Even before Kamen’s creation went on sale, Silicon Valley luminaries tripped over themselves heaping praise on it. The Segway could be as big a deal as the PC, said Apple’s (AAPL) CEO Steve Jobs. Not to be outdone, all-star venture capitalist John Doerr gave his own assessment: This scooter could be bigger than the Internet.
Kamen’s company erected a 77,000-square-foot factory in New Hampshire, capable of pumping out 40,000 Segways a month. Revolution seemed imminent. Urban congestion was coming to an end. Just one slight problem: As the hype faded, and the cheering dimmed, far fewer fans ultimately showed up to buy Kamen’s celebrated gizmos.
Segway is a private company and guards its numbers carefully. It doesn’t disclose its yearly revenue or whether it’s profitable. The front office will only say that, since the first Segway went on sale, its average annual growth rate has exceeded 50% and the company has sold “tens of thousands” of units.
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
