Osborne Effect

The Osborne Effect occurs when a company announces a new product too early, leading customers to delay or cancel current or future purchases in anticipation of the upcoming release. This hesitation can cause a sudden drop in sales, harming revenue and market confidence. Named after Osborne Computer, which experienced a significant sales decline after announcing an upcoming computer, the effect highlights the risk of revealing future products prematurely, as it may unintentionally reduce demand for current offerings. Effective communication and timing are essential to avoid this counterproductive impact.