Buzz
(Homeland) - On this day 42 years ago, on August 12, 1981, IBM unveiled its inaugural PC, rapidly dominating the market.
On this day 42 years ago, August 12, 1981, IBM introduced the first PC, leaving a significant impact on the global personal computer market. This successful computer model created a worldwide sensation, inspiring other manufacturers to launch devices with similar design and features, known as 'IBM Compatibles.' The technical details of the IBM PC became one of the most widely adopted computer design standards globally. Notable competition came from incompatible platforms in the 1980s, particularly the Apple Macintosh product line. The majority of modern computers trace their origins back to the IBM PC.
In reality, the IBM PC wasn't IBM's initial endeavor to create a compact computer. In 1975, IBM introduced the IBM 5100 Portable. Despite being named 'Portable,' this computer was relatively large compared to PCs released two years later. However, it was still much smaller than room-sized computers. The price of the IBM 5100 'PC' was also high, ranging from $8,975 to $19,975 depending on storage capacity - a substantial amount at that time.
In 1980, IBM ultimately decided to create a genuine personal computer for both households and offices. This led to the birth of the IBM PC at the research facility in Boca Raton, Florida, led by a team of 12, with engineer William C. Lowe at the helm. This new computer had an open architecture, using non-proprietary hardware and software, and was sold through retail stores. All of these factors went against IBM's business philosophy.
Several CPUs were considered for the IBM PC project, including Texas Instruments' TMS9900, Motorola 68000, and Intel 8088. The chosen name was the Intel 8088, selected for its reasonable price and IBM's previous experience with the chip in the design of the earlier IBM System/23 Datamaster.
In the software realm, Bill Gates and Steve Ballmer from Microsoft met with IBM, expressing their commitment to develop an exclusive operating system for the IBM PC. Despite Microsoft retaining ownership and licensing rights beyond IBM, surprisingly, IBM agreed to these terms. There was just one small hitch for Microsoft: they needed to rapidly advance the development of that operating system.
Microsoft made the strategic decision to acquire the copyright for QDOS from Seattle Computer Products for a mere $50,000. The primary developer of that OS, Tim Paterson, left the company to join Microsoft. In the following months, Tim and colleagues at Microsoft created PC-DOS, the operating system platform compatible with the first IBM PC.
The ultimate outcome was the introduction of the IBM PC 5150, priced at $1,565, inclusive of the computer, monochrome monitor, and keyboard. Users could purchase additional options such as a color monitor, printer, floppy disk drive, and more. Software bundled with the PC included the VisiCalc spreadsheet program and the Microsoft Adventure game.
IBM PC achieved substantial revenue, even with a relatively high price compared to competing rivals. At one point, IBM sold 40,000 PCs within a month. Estimates suggest that 50% to 70% of PC sales in retail stores were to individuals or households. By the end of 1983, IBM had sold over 750,000 units, while DEC, a competitor that led IBM to enter this market, only sold 69,000 units during the same period.
