Osborne Computer Corporation facts for kids
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Osborne Computer Corporation Stock Certificate
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| Industry | Computer hardware |
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| Fate | Bankrupt |
| Successor | Mikrolog Ltd |
| Founded | 1980 |
| Defunct | 1985 |
| Headquarters | Silicon Valley, San Francisco Bay Area, California |
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Key people
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Adam Osborne Lee Felsenstein |
| Products | Osborne 1 Osborne Executive Osborne Vixen Osborne PC (never released) |
The Osborne Computer Corporation (OCC) was an American company. It was a pioneer in making portable computers. The company was located in Silicon Valley, a famous tech area in California.
Adam Osborne started the company. With help from Lee Felsenstein, he created the world's first widely produced portable computer in 1981.
Contents
The Story of Osborne Computers
The Amazing Osborne 1 Computer
After selling his book company, Adam Osborne wanted to make a cheap, portable computer. He hired Lee Felsenstein to design it. This new computer was called the Osborne 1.
It had a small 5-inch screen and two floppy-disk drives. It used a Z80 microprocessor and 64 KB of RAM. The computer was designed to fit under an airplane seat. It was also tough enough to survive a small drop.
The Osborne 1 came with many useful programs already installed. These included the CP/M operating system and programming languages like MBASIC. It also had WordStar for writing and SuperCalc for spreadsheets. Osborne offered parts of his new company to get this software.
Fast Growth and High Demand
The Osborne Computer Corporation started in January 1981. Its first product, the Osborne 1, was ready very quickly. The first computers shipped in July 1981. Its low price changed what people expected from computers.
The company sold 11,000 Osborne 1s in just eight months. They had orders for 50,000 more! Even though some early units had problems, sales were huge. At its best, the company sold 10,000 units a month.
Osborne Computer Corporation grew incredibly fast. It went from two employees to 3,000 people in just one year. Their income reached $73 million. The company grew so quickly that staff sometimes had to search for their relocated offices!
In October 1982, Osborne added another popular program, dBase II, to the computer. This made demand even higher. Production reached 500 units a day, but this also made it harder to keep quality high.
Osborne in Australia
In Australia, President Computers Pty Ltd, led by Tom Cooper, sold the Osborne 1. They were very successful. Osborne Corp USA even called them the biggest seller of Osborne 1 computers outside of the US.
But then, Osborne decided to split the sales agreement in Australia. This meant President Computers would no longer be the only seller. Because of this, President Computers started selling a rival portable computer called the Kaypro. The Kaypro had a larger screen.
Tom Cooper had a good relationship with Adam Osborne. He saw the new Osborne Executive computer before it was released. Cooper advised Osborne not to announce the new model until all the original Osborne 1 computers were sold.
Facing Tough Competition
Even with its early success, Osborne faced strong competition. Other companies started making portable computers too. Kaypro Computer offered computers similar to the Osborne 1. They also ran CP/M and came with software. But Kaypro computers had bigger 9-inch screens.
Apple Computer had many programs available for their computers. With extra parts, Apple computers could also run CP/M. Then, IBM released its PC. The IBM PC was faster and more advanced. It also had a quickly growing library of software.
Osborne tried to get $20 million to make an IBM-compatible computer quickly. But they were not able to get the money.
The "Osborne Effect"
Some people believe that Adam Osborne hurt his own company. This is known as the "Osborne effect." In early 1983, Adam Osborne started showing the new Osborne Executive computer to reporters.
When dealers heard about the new Executive, they quickly stopped ordering the Osborne 1. They wanted to wait for the newer model. This meant many unsold Osborne 1 computers piled up. Even with big price cuts, sales did not get better.
The company lost more money than expected. The Osborne Computer Corporation declared bankruptcy on September 13, 1983. Some people disagree about whether the "Osborne Effect" was the only reason the company failed.
What Happened Next
After the company went bankrupt, many employees lost their jobs. First, sales, production, and most office staff were let go.
Osborne did come out of bankruptcy in 1984. They released a new portable computer called the Osborne Vixen. They also released the Osborne 3 (known as the Osborne Encore overseas). But the company never became as famous as it was before.
They tried to make an IBM-compatible computer, but it was too late. The company went bankrupt again. Later, a Finnish company called Mikrolog Ltd bought the rights to the Osborne brand name. They sold computers under the Osborne name until 2021, when they also went bankrupt.
Images for kids
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Osborne Computer Corporation Stock Certificate
