Osborne (computer retailer)
Encyclopedia
Osborne was the name of one of the largest and most successful computer wholesalers and resellers in Australia
. Started by Stanley Falinsky as the exclusive Australian distributor of the original Osborne 1
"luggable" computer featuring a Z-80 processor and running CP/M
as the operating system
. The company moved into IBM PC compatible
s in the mid-1980s and had great success with both business and government clients.
In about 1995, they appointed a new CEO who was determined to double their already substantial market share, largely by massive discounting without reducing the traditional good quality of an Osborne machine. The marketing push was financed by demanding that customers place a 100% deposit and then wait six weeks before picking up their new system, and by buying components on ever more generous credit terms from major suppliers like Micronics
and Seagate
. For about six months the new policy was remarkably effective: Osborne sales boomed and competitors were unable to match their prices. Osborne were selling well below cost, but their retail losses were made up for by currency fluctuations, in particular the steadily rising value of the Australian dollar
against the United States dollar
.
Inevitably, the currency movement swung back the other way eventually, and Osborne were placed on credit hold by several of their major suppliers: unable to secure more components until at least some of the previous shipments had been paid for, and unable to ship the promised new computers to the many customers who had long since paid in full for them, Osborne went into Voluntary Administration in June 1995.
Star Dean-Willcocks were appointed Administrators to the company in June 1995, resulting in sales of the business to Gateway 2000 computer company Gateway
. As a result of the sale employees received all entitlements and customers who had pre-paid for computers received a new computer from the new Osborne-Gateway company.
Relaunched at the PC96 show, the company later traded as Gateway 2000 Australia for several years, but were unable to recover Osborne's former dominant position and were unsuccessful in the Australian market. Gateway withdrew from Australia in August 2001.
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
. Started by Stanley Falinsky as the exclusive Australian distributor of the original Osborne 1
Osborne 1
The Osborne 1 was the first commercially successful portable microcomputer, released on April 3, 1981 by Osborne Computer Corporation. It weighed 10.7 kg , cost USD$ 1795, and ran the then-popular CP/M 2.2 operating system...
"luggable" computer featuring a Z-80 processor and running CP/M
CP/M
CP/M was a mass-market operating system created for Intel 8080/85 based microcomputers by Gary Kildall of Digital Research, Inc...
as the operating system
Operating system
An operating system is a set of programs that manage computer hardware resources and provide common services for application software. The operating system is the most important type of system software in a computer system...
. The company moved into IBM PC compatible
IBM PC compatible
IBM PC compatible computers are those generally similar to the original IBM PC, XT, and AT. Such computers used to be referred to as PC clones, or IBM clones since they almost exactly duplicated all the significant features of the PC architecture, facilitated by various manufacturers' ability to...
s in the mid-1980s and had great success with both business and government clients.
In about 1995, they appointed a new CEO who was determined to double their already substantial market share, largely by massive discounting without reducing the traditional good quality of an Osborne machine. The marketing push was financed by demanding that customers place a 100% deposit and then wait six weeks before picking up their new system, and by buying components on ever more generous credit terms from major suppliers like Micronics
Micronics
Micronics is a Japanese video game developing company which developed the NES versions of 1942, Athena, Ghosts 'n Goblins, Ikari Warriors, Ikari Warriors II: Victory Road, and Tiger Heli. Although uncredited in almost all their games, their work can often be identified by a distinct Pause sound...
and Seagate
Seagate Technology
Seagate Technology is one of the world's largest manufacturers of hard disk drives. Incorporated in 1978 as Shugart Technology, Seagate is currently incorporated in Dublin, Ireland and has its principal executive offices in Scotts Valley, California, United States.-1970s:On November 1, 1979...
. For about six months the new policy was remarkably effective: Osborne sales boomed and competitors were unable to match their prices. Osborne were selling well below cost, but their retail losses were made up for by currency fluctuations, in particular the steadily rising value of the Australian dollar
Australian dollar
The Australian dollar is the currency of the Commonwealth of Australia, including Christmas Island, Cocos Islands, and Norfolk Island, as well as the independent Pacific Island states of Kiribati, Nauru and Tuvalu...
against the United States dollar
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
.
Inevitably, the currency movement swung back the other way eventually, and Osborne were placed on credit hold by several of their major suppliers: unable to secure more components until at least some of the previous shipments had been paid for, and unable to ship the promised new computers to the many customers who had long since paid in full for them, Osborne went into Voluntary Administration in June 1995.
Star Dean-Willcocks were appointed Administrators to the company in June 1995, resulting in sales of the business to Gateway 2000 computer company Gateway
Gateway, Inc.
Gateway Computer Corporation, is a computer hardware company headquartered in Irvine, California, USA which develops, manufactures, supports, and markets a wide range of personal computers, computer monitors, servers, and computer accessories...
. As a result of the sale employees received all entitlements and customers who had pre-paid for computers received a new computer from the new Osborne-Gateway company.
Relaunched at the PC96 show, the company later traded as Gateway 2000 Australia for several years, but were unable to recover Osborne's former dominant position and were unsuccessful in the Australian market. Gateway withdrew from Australia in August 2001.