Page 103 - MS Year in Review 2020

Origin of Osborne Computer

Osborne Computer Corporation began when Adam Osborne recognized the market
for a microcomputer that was relatively low-priced, easy to use, portable, and that

came with software (something very unique at the time). His idea was a spin-off of
the personal computer concept pioneered by Apple Computer, but Osborne

identified a new market segment when he made his computers easy to carry. (It
should be noted that this computer was described as “luggable” because while it
was portable, it weighed about 28 pounds). Despite initial skepticism, Osborne

produced and marketed his machines and, in doing so, created a new market.

The Rapid Rise and Fall of Osborne Computer

From its inception, Osborne Computer experienced extraordinarily rapid growth. In

1981, the firm’s first full year of operation, its sales were $5.8 million. By 1982,
sales had grown to $68.8 million. During 1983, they were growing at an annualized

rate of more than $100 million per year.

Osborne’s success was the classic entrepreneur’s dream come true, but it turned
into a classic nightmare and crisis. When some suppliers sued to collect $4.5
million, Osborne filed for bankruptcy under Chapter XI of the Federal Bankruptcy

code in September 1983. In his book entitled Hypergrowth: The Rise and Fall of
Osborne Computer Corporation, Adam Osborne sadly stated, “For Osborne
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Computer Corporation the game was over.”

What Caused the “Icarus Syndrome” at Osborne Computer?

What caused the fall of Osborne Computer after its initial “Dazzling

Success”? Although the answer is complex, a key to the basic problem was stated
by Adam Osborne himself in reflecting on what had happened. According to
him, the firm:

87 Adam Osborne and John Dvorak, Hypergrowth: The Rise and Fall of Osborne Computer (Berkeley,
CA: Idthekkethan, 1984), p. 120.

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