There is a reason why Apple is the biggest company in the world: it keeps going back to the drawing board. In fact, if you lined up Apple's success stories beside Apple failures, you would find out that there are far more flops than flourishes.
Remember the Newton (the first PDA to hit the market, which lasted perhaps 12 minutes before being dumped), or Macintosh TV. Do you remember the Mac Mouse, the round apple turd of a mouse that everyone hated?
There are countless flubs. But Apple owned these failures, which means that they kept pumping out new ideas. You may recall that a few of them actually had mild success. Or are you still using Windows Media Player?
Here's an excellent infographic that shows the history of Apple blunders and successes:
http://cdn.theatlantic.com/static/mt/assets/science/0825Info.jpg
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