Osborne Computer Corporation

Last updated

Osborne Computer Corporation
Industry Computer hardware
Founded1980;44 years ago (1980)
Defunct1985
FateBankrupt
SuccessorMikrolog Ltd
Headquarters Silicon Valley,
San Francisco Bay Area,
California
Key people
Adam Osborne
Lee Felsenstein
Products Osborne 1
Osborne Executive
Osborne Vixen
Osborne PC (never released)

The Osborne Computer Corporation (OCC) was an American computer company and pioneering maker of portable computers. It was located in the Silicon Valley of the southern San Francisco Bay Area in California. [1] Adam Osborne, the founder of the company, developed, with design work from Lee Felsenstein, the world's first mass-produced portable computer, the Osborne 1, in 1981. [1]

Contents

History

Osborne 1

Tom Cooper signs with Adam Osborne. Cooper and Osbourne.jpg
Tom Cooper signs with Adam Osborne.

After Adam Osborne sold his computer book-publishing company to McGraw-Hill in 1979, he decided to market an inexpensive portable computer with bundled software and hired Lee Felsenstein to design it. The resulting Osborne 1 featured a 5 inch (127 mm) 52-column cathode-ray tube display, two floppy-disk drives, a Z80 microprocessor, and 64  KB of RAM. It could fit under an airplane seat and survive being accidentally dropped. The bundled software package included the CP/M operating system, the MBASIC and CBASIC programming languages, the WordStar word processing package, and the SuperCalc spreadsheet program. It also included project management software with PERT and GANTT charts, and communications software for a 300 baud modem. Osborne obtained the software in part by offering stock in the new Osborne Computer Corporation, [2] which he founded in January 1981. For example, MicroPro International received 75,000 shares and $4.60 for each copy of WordStar Osborne distributed with his computers. [3]

Unlike other startup companies, Osborne Computer Corporation's first product was ready soon after its founding. The first Osborne 1 shipped in July 1981, and its low price set market expectations for bundled hardware and software packages for several years to come. The company sold 11,000 Osborne 1s in the eight months after its July 1981 debut, with 50,000 more on backorder, although the early units had a 10 to 15% failure rate. [4] [3] The peak sales per month for it over the course of the product lifetime was 10,000 units, despite the initial business plan for the computer predicting a total of only 10,000 units sold over the entire product lifecycle. Osborne had difficulty meeting demand, and the company grew from two employees, Osborne and Felsenstein, to 3,000 people and $73 million in revenue in 12 months. The growth was so rapid that, in one case, an executive who returned from a one-week trade show had to search two buildings to find her relocated staff. [2] The company announced in October 1982 a temporary bundling of Ashton-Tate's dBase II, increasing demand so much that production reached 500 units a day and severely diminishing quality control. [3]

Future vision of portable computers seen in Australia Osbourne 1 computer at Wynyard Station Australia 1982.jpg
Future vision of portable computers seen in Australia

In 1982, Osborne was originally represented in Australia exclusively by President Computers Pty Ltd headed by Tom Cooper, a Captain of Industry in the emerging Australian PC era. With outstanding success of Osborne 1 sales in Australia, President Computers was lauded at the time by Osborne Corp USA as the largest global distributor of Osborne 1 luggable computers outside of Computerland USA. However with success, Osborne's visiting CFO had his own sights on the Australian market place and convinced Adam Osborne to split the Agency much to Cooper's objection. This move saw President Computers equally divide its current Dealership arrangement when Osborne Corporation setup to hold half the dealership Agency. Upon this decision President Computers exclusivity signed on Osborne's luggable rival the US Del Mar CA manufactured Kaypro Computer produced by Non Liner Systems which boasted a larger format in-built screen.

Cooper held a trusted business relationship with Adam Osborne and was privy to an early viewing of the yet to be released new Osborne Executive. On sighting warehouses full of the first model, Cooper cautioned Osborne that the Osborne II should only be announced once the original Osborne 1 stock had been depleted[ citation needed ]. Ultimately, dismissing such advice contributed to Osborne Corporation's demise and Chapter 11 filing in September 1983. Osborne Corporation in Australia was then restructured and moved towards the PC sector but retained use of the Osborne brand. By this time President Computers also had successfully enjoyed strong success with Kaypro luggable computer sales had itself moved into the PC Sector under its own private label brand with Cooper's President Computer PC Assembly plant officially opened on the Gold Coast Technology Park, 1 Computer Street, Labrador Queensland in 1986 by Minister for Industry, Small Business and Technology of Queensland for Industry and Innovation Hon. Mike Ahern.

Competition

Despite early success, Osborne struggled under heavy competition. Kaypro Computer offered portables that, like the Osborne 1, ran CP/M and included a software bundle, but Kaypro offered larger 9 inch (229 mm) screens. Apple Computer's offerings had a large software library of their own and with aftermarket cards, could run CP/M as well. IBM's PC was faster, more advanced, and offered a rapidly growing software library, and Osborne's efforts to raise $20 million in capital to rush an IBM-compatible computer to market were unsuccessful.

The Osborne effect

According to proponents of the Osborne effect theory, Adam Osborne damaged his company's current sales when he began showing the Osborne Executive to journalists in early 1983. Dealers rapidly started cancelling orders for the Osborne 1 in anticipation of the new Executive. Unsold inventory piled up and in spite of dramatic price cuts – the Osborne 1 was selling for $1295 in July 1983 and $995 by August – sales did not recover. Losses, already higher than expected, continued to mount, and OCC declared bankruptcy on September 13, 1983. [3] Disagreement exists on whether the Osborne Effect truly caused the company to collapse, with Robert X. Cringely and Charles Eicher attributing its failure to other causes. [5] [6]

Bankruptcy

When it was apparent that the company would be closing down, a company meeting was held with all employees. The first round of layoffs involved sales staff, production staff, domestic marketing and most mid to low-level clerical support. These employees were presented with their paychecks only. The management that remained was primarily from the international marketing division.

Nine days later on September 22, 1983 a group of 24 investors filed suit against OCC and several individuals, seeking $8.5 million in damages for masking the company's true financial situation and accusing several directors of the company of insider trading. Osborne emerged from bankruptcy in 1984 and released the Osborne Vixen, a compact portable running CP/M, in late 1984, along with the Morrow Pivot-based Osborne 3 (known as the Osborne Encore overseas). However, the company never regained its early prominence. A last ditch effort to create a fully IBM compatible Osborne produced three prototypes, but too late to save the company from bankruptcy.

Commercial rights for the Osborne brand name were later acquired by the Finnish clone PC maker Mikrolog Ltd which sold its server and desktop PCs domestically under the previously world famous name until 2021, when Mikrolog went bankrupt. [7]

Related Research Articles

Kaypro Corporation was an American home and personal computer manufacturer based in Solana Beach in the 1980s. The company was founded by Non-Linear Systems (NLS) to compete with the popular Osborne 1 portable microcomputer. Kaypro produced a line of rugged, "luggable" CP/M-based computers sold with an extensive software bundle which supplanted its competitors and quickly became one of the top-selling personal computer lines of the early 1980s.

<span class="mw-page-title-main">Adam Osborne</span> British computer designer (1939–2003)

Adam Osborne was a British author, software publisher, and computer designer who founded several companies in the United States and elsewhere. He introduced the Osborne 1, the first commercially successful portable computer.

<span class="mw-page-title-main">Osborne 1</span> Early portable microcomputer

The Osborne 1 is the first commercially successful portable computer, released on April 3, 1981 by Osborne Computer Corporation. It weighs 24.5 lb (11.1 kg), cost US$1,795, and runs the CP/M 2.2 operating system. It is powered from a wall socket, as it has no on-board battery, but it is still classed as a portable device since it can be hand-carried when the keyboard is closed.

Otrona Advanced Systems Corporation was an early Colorado manufacturer of business portable CP/M and MS-DOS compatible computers.

<span class="mw-page-title-main">Portable computer</span> Lightweight, compact computer with built-in peripherals

A portable computer is a computer designed to be easily moved from one place to another, as opposed to those designed to remain stationary at a single location such as desktops and workstations. These computers usually include a display and keyboard that are directly connected to the main case, all sharing a single power plug together, much like later desktop computers called all-in-ones (AIO) that integrate the system's internal components into the same case as the display. In modern usage, a portable computer usually refers to a very light and compact personal computer such as a laptop, subnotebook or handheld PC, while touchscreen-based handheld ("palmtop") devices such as tablets, phablets and smartphones are called mobile devices instead.

<span class="mw-page-title-main">Columbia Data Products</span> Company

Columbia Data Products, Inc. (CDP) is a company which produced the first legally reverse-engineered IBM PC clones. It faltered in that market after only a few years, and later reinvented itself as a software development company.

<span class="mw-page-title-main">Osborne Vixen</span> Portable computer released in 1984

The Osborne Vixen is a "luggable" portable computer announced by the Osborne Computer Corporation in November 1984, as a follow-up to their Osborne 1 and Osborne Executive system.

<span class="mw-page-title-main">Compaq Portable series</span> Laptop manufacturer

Compaq's first computers' form factors were portable, also called "luggables", and then "lunchbox computers", and together constituted the Compaq Portable series. These computers measured approximately 16 inches (410 mm) deep, 8 inches (200 mm) tall, and approximately 20 inches (510 mm) wide. As the products evolved, laptops and notebooks were created offering a new level of portability that caused the market to explode.

The Osborne effect is a social phenomenon of customers canceling or deferring orders for the current, soon-to-be-obsolete product as an unexpected drawback of a company's announcing a future product prematurely. It is an example of cannibalization. The term alludes to the Osborne Computer Corporation, whose second product did not become available until more than a year after it was announced. The company's subsequent bankruptcy was widely blamed on reduced sales after the announcement.

<span class="mw-page-title-main">Compaq Portable</span> Early portable computer

The Compaq Portable is an early portable computer which was one of the first IBM PC compatible systems. It was Compaq Computer Corporation's first product, to be followed by others in the Compaq Portable series and later Compaq Deskpro series. It was not simply an 8088-CPU computer that ran a Microsoft DOS as a PC "work-alike", but contained a reverse-engineered BIOS, and a version of MS-DOS that was so similar to IBM's PC DOS that it ran nearly all its application software. The computer was also an early variation on the idea of an "all-in-one".

<span class="mw-page-title-main">Osborne (computer retailer)</span>

Osborne was the name of one of the largest and most successful computer wholesalers and resellers in Australia. Osborne Corporation in Australia was originally registered by President Computers founded by Tom Cooper, the name was transferred back to the US HQ founder Adam Osborne and his Osborne Computer Corporation, as a good will gesture by Cooper in the early stages of a highly successful launch of the Osborne 1 across the Australian marketplace. Adam Osborne at this time visited Sydney Australia at the invitation of Cooper to witness first hand the phenomenal success the Osborne 1 was experiencing in the Australian market.

<span class="mw-page-title-main">Osborne Executive</span> Portable computer released in 1983

The Osborne Executive, released in April 1983, was the successor to the Osborne 1 portable computer. Produced by the Osborne Computer Corporation, the Executive offered numerous improvements over the already successful Osborne 1, including a 7-inch amber phosphor CRT display and more space efficient half-height 5 ¼ disk drives.

<span class="mw-page-title-main">Influence of the IBM PC on the personal computer market</span>

Following the introduction of the IBM Personal Computer, or IBM PC, many other personal computer architectures became extinct within just a few years. It led to a wave of IBM PC compatible systems being released.

<span class="mw-page-title-main">History of laptops</span>

The history of laptops describes the efforts, begun in the 1970s, to build small, portable personal computers that combine the components, inputs, outputs and capabilities of a desktop computer in a small chassis.

<span class="mw-page-title-main">MicroPro International</span> American software company (1978–1993)

MicroPro International Corporation was an American software company founded in 1978 in San Rafael, California. They are best known as the publisher of WordStar, a popular early word processor for personal computers.

Sorcim Corporation was an early start-up company in Silicon Valley, founded in June 1980 by Richard Frank, Paul McQuesten, Martin Herbach, Anil Lakhwara, and Steve Jasik - all former Control Data Corporation employees working in the Language Group in Sunnyvale, CA. Jasik left company early on, to develop the MacNosy product for the Macintosh.

Corona Data Systems, later renamed Cordata, was an American personal computer company. It was one of the earliest IBM PC compatible computer system companies. Manufacturing was primarily done by Daewoo of Korea, which became a major investor in the company and ultimately the owner.

<span class="mw-page-title-main">Osborne PC</span> Prototype IBM PC compatible

The Osborne PC is an unreleased IBM PC–compatible personal computer developed between 1983 and 1984 by Osborne Computer Corporation. Only prototypes of the computer were ever produced.

<span class="mw-page-title-main">Zorba (computer)</span>

The Zorba was a portable computer running the CP/M operating system manufactured in 1983 and 1984. It was originally manufactured by Telcon Industries, Inc., of Fort Lauderdale, Florida, a company specialized in telecommunication equipment manufacturing.

<span class="mw-page-title-main">Dimension 68000</span> Microcomputer introduced by the Micro Craft Corporation in 1983

The Dimension 68000 is a microcomputer introduced by the Micro Craft Corporation in 1983 that sought to emulate the Apple II, the IBM PC, and various CP/M-centric computers through a family of coprocessor expansion cards and emulation software. The Dimension 68000 can also run as a standalone computer based on the Motorola 68000 from which it gets its namesake. The computer is mostly the brainchild of Mike Carpenter, a former executive of a scientific instrument manufacturer who incorporated Micro Craft in Dallas, Texas, to develop the Dimension 68000. It had a market lifespan of three years and received mixed, mostly positive, reception from the technology press. Criticism was leveled at the $6,250 price tag for the computer with the full deck of coprocessor cards, as well as the extent of the emulation power of those cards.

References

  1. 1 2 The Henry Ford Blog: "The Rise and Fall of the Osborne Computer Corporation", April 16, 2015 — with images.
  2. 1 2 McCracken, Harry (April 1, 2011). "Osborne!". Technologizer. Retrieved April 3, 2011.
  3. 1 2 3 4 Ahl, David H. (March 1984). "Osborne Computer Corporation". Creative Computing. Ziff-Davis. p. 24. Retrieved April 4, 2011.
  4. Hogan, Thom (April 13, 1981). "Osborne Introduces Portable Computer". InfoWorld. Vol. 3, no. 7. IDG. pp. 1, 44. Retrieved April 4, 2011.
  5. Cringely, Robert X. (June 16, 2005). "The Osborne Effect". The Osborne Effect: Sometimes What Everyone Remembers Is Wrong. PBS. Archived from the original on August 3, 2007. Retrieved November 25, 2009.
  6. Orlowski, Andrew (June 20, 2005). "Taking Osborne out of the Osborne Effect". The Register . Retrieved June 22, 2009.
  7. "Ajantasainen lista konkursseista" (in Finnish).

Further reading