Osborne Computer Corporation
| File:Osborne logo.svg | |
| File:Osborne Stock Certificate.jpg Osborne Computer Corporation Stock Certificate | |
| Industry | Computer hardware |
|---|---|
| Founded | 1980 |
| Defunct | 1985 |
| Fate | Bankrupt |
| Successor | Mikrolog Ltd |
| Headquarters | Hayward, California |
Key people | Template:Ubli |
| Products | Template:Ubli |
The Osborne Computer Corporation (OCC) was an innovative American company specializing in portable computer manufacturing, headquartered in Hayward, California, within the San Francisco Bay Area. Founded by Adam Osborne with design contributions from Lee Felsenstein, OCC introduced the first widely produced portable computer, the Osborne 1, in 1981.
Osborne 1
Following the sale of his computer book publishing enterprise to McGraw-Hill in 1979, Adam Osborne set out to develop an affordable portable computer bundled with software. He enlisted Lee Felsenstein for its design. The resulting machine, the Osborne 1, incorporated a 52-column cathode-ray tube display, dual floppy disk drives, a Z80 microprocessor, and 64 KB of RAM. Its compact design allowed it to fit under an airplane seat and withstand accidental drops. The package included the CP/M operating system, MBASIC and CBASIC programming languages, as well as applications such as WordStar, SuperCalc, project management software featuring PERT and Gantt charts, and communications programs for a 300 baud modem. To secure software partnerships, Osborne offered equity stakes in the newly established company launched in January 1981; for instance, MicroPro International received shares plus royalties on each WordStar license distributed.
Unlike many startups of the era, OCC managed to ship its initial product rapidly—by July 1981—and its competitive pricing set new standards for integrated hardware and software offerings. Within eight months, the company sold approximately 11,000 units while maintaining a backlog of 50,000 orders despite an early failure rate estimated between 10 and 15 percent. Monthly sales peaked at around 10,000 units, surpassing initial total sales projections. The overwhelming demand propelled OCC from a two-person startup to a workforce of 3,000 employees generating $73 million in revenue within one year. In October 1982, adding Ashton-Tate's dBase II to the bundled software lineup increased daily sales to about 500 units but placed additional pressure on quality assurance processes.
In Australia, Osborne’s distribution initially relied exclusively on President Computers Pty Ltd under Tom Cooper’s leadership. This arrangement positioned President Computers as the largest global distributor of Osborne 1 systems outside the United States. However, after OCC’s CFO convinced Adam Osborne to share dealership rights equally with OCC—contrary to Cooper's objections—the relationship shifted. Subsequently, President Computers began distributing the Kaypro luggable computer as an alternative offering.
Tom Cooper maintained a close rapport with Adam Osborne and previewed the unreleased Osborne Executive. He recommended postponing its announcement until existing Osborne 1 inventory was cleared; disregarding this advice contributed to OCC’s decline and eventual Chapter 11 bankruptcy filing in September 1983. After restructuring efforts in Australia, the company transitioned toward personal computers while continuing to use the Osborne brand name. Meanwhile, President Computers expanded its success through Kaypro sales and inaugurated its own PC assembly facility in Queensland by 1986.[1]
Competition
Although Osborne initially achieved notable success, it encountered formidable rivals in the market. Kaypro introduced portable computers running CP/M, featuring larger 9-inch displays and bundled software packages. Apple distinguished itself with an extensive software catalog and CP/M compatibility through expansion cards. IBM's PC offered superior speed, advanced capabilities, and access to a rapidly growing software library. Osborne's efforts to secure $20 million in funding for developing an IBM-compatible machine were unsuccessful.
The Osborne effect
The concept known as the Osborne effect posits that Adam Osborne's premature announcement of the Osborne Executive in 1983 prompted dealers to cancel existing orders for the Osborne 1, expecting the forthcoming model. This anticipation led to excess inventory and a sharp decline in sales despite price reductions—from $1295 in July 1983 down to $995 by August. The resulting financial strain compelled Osborne Computer Corporation (OCC) to file for bankruptcy on September 13, 1983. Nevertheless, some experts contend that other circumstances played a more critical role in the company's downfall.
Bankruptcy
Facing imminent shutdown, OCC reduced its workforce by dismissing personnel in sales, production, marketing, and administrative roles, retaining mainly those involved in international marketing management. On September 22, 1983, investors initiated an $8.5 million lawsuit against OCC and its executives, accusing them of hiding financial difficulties and engaging in insider trading.
After emerging from bankruptcy in 1984, Osborne launched the compact CP/M-based Osborne Vixen and the Morrow Pivot II–based Osborne 3 (marketed abroad as the Osborne Encore). Despite attempts to develop fully IBM-compatible prototypes, the firm was unable to reclaim its former market standing.
Subsequently, Finnish PC manufacturer Mikrolog Ltd acquired rights to the Osborne name for commercial use, marketing servers and desktop computers under this brand within Finland until Mikrolog itself declared bankruptcy in 2021.