💀 CASE STUDY · STARTUP
📡

Why Did Iridium Fail?

$5 Billion for Phones That Didn't Work Indoors

1999YEAR
☠️ STARTUPCAUSE
💸 $5B — sold for $25MTHE BURN

📜 What Happened

Motorola's Iridium launched 66 satellites for a global phone — engineering's Everest, conceived in 1987 when cellular was patchy. By its 1998 launch, GSM roaming covered the profitable world. The Iridium handset: $3,000, brick-sized, $7/minute — and needing line-of-sight to sky, it FAILED INDOORS AND IN CARS, where businesspeople live. It won 20,000 subscribers against a 500,000 break-even. Bankruptcy in nine months; the $5B constellation sold for $25M.

☠️ The Fatal Mistake

An 11-year build with no checkpoint asking 'is the problem still unsolved?' — the market moved; the plan, magnificently, didn't.

🧠 The Lesson (Free for You)

Long projects need scheduled kill-reviews against the CURRENT world, not the founding memo. Engineering achievement is not exempt from the question 'who still needs this?'

📕 The Antidote Book

The Innovator's Dilemma cover
The Innovator's Dilemma Clayton M. Christensen · Business & Startups · 6 lessons

Christensen's Harvard research began with a paradox: why do well-run market leaders — companies that listen to customers, invest in R&D, and chase profits rationally — get destroyed by scrappy newcomers with WORSE…

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