/Tech5h ago

Tony Fadell Explains Why Every Product Needs Three Generations To Succeed

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.@tfadell: "Every new product needs three generations to get right. You make the product, then you fix the product, then you fix the business.

Even the iPod, it took three generations before it became successful."

Tony Fadell's resume:

+ Co-created the iPhone → $2.3 trillion in sales + Created the iPod → saved Apple from bankruptcy + Founded Nest → AI in your home 11 years before ChatGPT

I asked him about everything he's learned: 🔸 Why opinion-based decisions are essential for v1 products 🔸 Why marketing matters as much as the product itself 🔸 Why taste is the biggest moat in AI 🔸 His prediction for the next breakthrough consumer device 🔸 Why "cognitive surrender" to AI is the biggest risk for builders

Listen now 👇 https://youtu.be/RJjl1TwyfWM

2:01 PM · Jun 9, 2026 · 41.3K Views
Sentiment

Many users praise Tony Fadell's claim that products need three generations to succeed because they find the framework an honest reminder of how v1 proves the idea, v2 fixes issues, and v3 makes the business work.

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It's funny how people used to make fun of Microsoft for taking three versions to get something right. It was always true. The market feedback loop is the only way to do this.

Don't buy .0 release might have been harsh though. :-)

.@tfadell: "Every new product needs three generations to get right. You make the product, then you fix the product, then you fix the business.

Even the iPod, it took three generations before it became successful."

5hViews 11KLikes 33Bookmarks 7

@lennysan @tfadell Very good quote

21hViews 613Likes 3Bookmarks 1
Pablo Poo@pablopoo

@stevesi 1st innovators, 2nd early adopters, 3rd early majority.

5hViews 60Bookmarks 1
Joe Williamson@JoeWilliamsonTX

@stevesi Some marketing guy, “I know it’s the first release, but if we call it version 3.0 we’ll sell more copies”.

3hViews 36Likes 1
James Wang@draecomino

@lennysan @tfadell can confirm. i bought the third gen.

21hViews 2.1KLikes 1

@JoeWilliamsonTX Before internet releases of patches, a real debate was the whole "major or minor" release naming. Is the version +1 to the left or right of the decimal point?

https://hardcoresoftware.learningbyshipping.com/p/088-planning-the-most-important-windows

3hViews 42Likes 1
程肯@KenCCheng

@lennysan @tfadell Ok, I went back to look. I still like my Gen 2 iPod. The problem was a Mac-only product, when Macs had only 2% market share. Still works, still sits on my desk, still have a NewerTech battery to install in it.

4hViews 28Likes 1
Xkaii@XkaiiMusic

@lennysan @tfadell i've seen this in music production too - first track is the concept, second is the mix, third is the master that sticks

22hViews 57
HudHud Script@hudhudscript

@lennysan @tfadell May you please check our article Lenny Rachitsky, https://medium.com/@onur.oguzel/six-months-of-ai-assisted-software-development-a-critical-evaluation-of-vibe-coding-agentic-ides-6ce410360ee7 and I will be glad if you may check our project on https://hudhudscript.com

22hViews 57
Naina Sahni@NainaSahni13

@stevesi The quiet part of "three generations": the feedback loop only works if the team can survive hearing it.

Most products don't die at v1 because they were wrong. They die because the founder couldn't separate "the product is wrong" from "I am wrong."

5hViews 51
Rachid@_itsRachid

@stevesi Good luck explaining that to stakeholders who want a perfect product on day one.

5hViews 44
Pothu@pothuLabs

@lennysan @tfadell I shipped 5 phases of a side project in 4 weeks solo with agents, each would have been a quarter of roadmap before. The waiting is all on the user-feedback side now. That part didn't speed up at all.

15hViews 44
Nova@NovaByArun

@lennysan @tfadell large company friction often kills the three-generation cycle before the business model settles. keeping new product teams as independent entities is the move to maintain focus, similar to the internal incubator structure at facebook.

20hViews 43
Nikodemus Corvus@NikodemusCorvus

@stevesi When I was using Windows on my personal systems, I wouldn't upgrade to the next version until the first service pack was out. Then it was "done".

4hViews 39
Bill Kerr@bill_kerrrrr

@lennysan @tfadell The 'then you fix the business' generation is the one everyone forgets exists. Most teams nail version one of the product and assume the model will sort itself out.

18hViews 29

@lennysan @tfadell when do we get agent collaboration then?

22hViews 25
Shobhit Saxena@contactshobhit

@lennysan @tfadell Three generations usually isn't the product getting better. It's you finally understanding who it's for. At Zee, two formats flopped before one added 10M users — same team, third read on the user. Gen 1 ships the thing. Gen 2 and 3 are where you learn what it actually was.

11hViews 21
hamfish@itsthehamfish

@lennysan @tfadell The three generations framework is the most honest thing anyone says about product timelines. Make it, fix it, fix the business. Most investors are funding generation one and expecting generation three results. Most founders are blaming themselves for not skipping to three.

22hViews 21
Mark Ankcorn@markankcorn

@stevesi My friend will only by even number Apple products because it takes them at least one generation to deliver on the concept introduced in the odd-number generation

3hViews 17
智享@CycleDecoded

@lennysan @tfadell I'd reply to Lenny like: So true. Every v1 feels like a rough sketch. But that third version? Pure magic.

17hViews 14
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