The Biggest Tech Companies' Single Biggest Failures of 2011

Even giants stumble. None of the four biggest tech companies -- Apple, Facebook, Google and Amazon -- made it through the year without a misstep.

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Much has been written about the coming showdown among the four tech giants -- Amazon, Apple, Facebook, and Google. As Farhad Manjoo wrote in FastCompany:

To state this as clearly as possible: The four American companies that have come to define 21st-century information technology and entertainment are on the verge of war. Over the next two years, Amazon, Apple, Facebook, and Google will increasingly collide in the markets for mobile phones and tablets, mobile apps, social networking, and more.

This past year has seen bumbling missteps by each of these companies, some of which are the results of their efforts to step into another's turf, and some of which are the results of the natural hazards of the spaces they inhabit.

Here's a look at each company's missteps of the year now coming to a close.

1. Google's Social Networking Gambit Fails to Launch

In late June Google launched its latest attempt at building a Facebook-like social site, Google+. For a few weeks (days?), Google+ was the only thing anyone in the tech world could think about; everyone was trying to figure out what they would use it for. But since then, Google+ has sputtered along. David Sarno at The Los Angeles Times recently wrote, "a more complete set of data shows that Google+ has been fighting declines for most of its nearly five-month history." Every now and then it gets a boost of activity (such as when it became open to the public after an invitation-only opening, or the more recent roll-out of official pages for publications and companies), but in the end it seems to be having trouble catching on. In early November, Slate proclaimed the fledgling network already dead.

Joshua Gans postulated about why Google+ has floundered in the Harvard Business Review:

But critically, the Facebook default encourages you not to limit sharing. Indeed, you'll share the vast majority of information on Facebook with all of your friends. On Google, you'll likely exercise your limited sharing options, thinking about which circle to share each post with as you go.

The upshot of this is, on the whole, Google has incentives to reduce the amount of sharing going on while Facebook seeks to set defaults to maximize it. This is why sometimes people claim that Facebook "gets social" and Google does not.

This distinction has a critical impact on each company's business. The network effects by which users value a particular network increase based on the amount of sharing going on. One telephone is useless. But with many millions and a phone book, you're getting somewhere. Facebook's defaults nudge  people towards sharing while Google's do not. Indeed, Google's entire attraction is its sales pitch, "Suppose you don't want to share something with all your friends, we make that easy." So it attracts users more inclined to limit sharing.

For Google, the problems don't end with Google+. Rather, the effort to lift Google+ into the social-networking stratosphere has caused Google to make other mistakes, in particular an effort to get Google Reader users to share content on Google+, which resulted in the end of Reader's well-loved sharing features. Additionally, recent tweaks to Gmail and Google's search bars, meant to bring more of Google's products under one visual-language umbrella, have caused frustration among some users. 

2. Amazon's Kindle Fire Backfires Among Reviewers

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Rebecca J. Rosen is a senior editor at The Atlantic, where she oversees the Business Channel. She was previously an associate editor at The Wilson Quarterly.

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