The Apprentice star, who was honoured for his contribution to technology at the T3 Gadget Awards last night, said that he was "proud" of the PDA device and feels he gave up on it prematurely.
"We made a product once that was very futuristic. It was called the PenPad and for want of a better world it was a handheld PDA and it set the scene for touchscreens and things like that," he told TechRadar.
"The lesson for young people here to learn is don't give up too quickly because we gave up on a product we were very proud of, and one that never made us any money - but people like Palm Pilot and that other company called Apple carried on and made quite a lot of money out of that technology."
Sugar previously said that late Apple co-founder Steve Jobs also deserves an outstanding contribution to technology prize. However, he expressed disbelief at the number of people queuing for the latest iPhone.
"I don't think anyone needs it that badly," he added. "I don't queue for anything; my kids were very upset when I wouldn't queue up at Disneyworld."
Amstrad designed and made the first satellite dish for pay-TV giant Sky and Sugar was knighted for service to business in 2000, and appointed to the House of Lords in 2009 as the then-government's Enterprise Tsar.
Most recently, he has acted as chairman of the BBC-backed Freeview set-top box venture YouView, and helped guide the troubled project to market.