February 11, 1991: Tchao Begs for A Cheaper Newton

Nothing better typifies Apple's ability to innovate while also illustrating the missed opportunities that seem to be part of Apple's corporate culture than the Newton. Before the Newton, the PDA (Personal Digital Assistant) wasn't a market segment; by the time the concept became intriguing, Apple was left with a small slice of the market.

Interesting wrangling about the initial Newton went on behind the scenes at Apple. Then Apple President, John Sculley, had taken a keen interest in the device but there was no consensus as to whether the Newton should be a smallish computer or an 8.5 X 11 tablet sized device. The Newton management team generally favored the larger model, called the Newton Plus, which would have retailed for roughly $5,000.

One dissident was Michael Tchao. Risking a pink slip, he jumped over his manager's heads and made a passionate plea directly to Apple President John Sculley. Tchao argued that the Newton team should focus on the smaller, less expensive version. Sculley agreed and ordered Newton management to zero in on the 4.5" by 7" version. Marketer Michael Tchao ran the end around that resulted in the beginning of a true PDA market this month in 1991.