1981: Adam Osborne Invents the Laptop - Pivotal Moments

Adam Osborne pictured with the Osborne 1 laptop computer

Welcome to our seventh Pivotal Moments blog. If you follow us on social media, you'll know what this is all about. To paraphrase Confucius, it's only by knowing where we've been that we can understand where we're going.

“Study the past if you would divine the future.”

— Confucius

When you think of the history of computers, Adam Osborne isn’t likely the first name that comes to mind. Likewise, Osborne Computer Corporation might not ring any bells.

In truth, Adam Osborne wasn’t the first to develop the idea of a portable computer. But he was the first person to create one that was practical and didn’t require Hulk-like capabilities to carry around. His laptop was the first of many to set the standard for what we consider reasonable today.

Early Years

Born in Thailand to British parents in 1939, Adam Osborne spent most of his youth in India. He graduated from the University of Birmingham in 1961 and received a PhD from the University of Delaware. 

In the mid-70s, Osborne became a computer hobbyist and self-published computer manuals—including one for Intel’s Intel'sicroprocessor. In 1972, he founded Osborne and Associates, a company that created simple, easy-to-read computer manuals. By 1977, the company had published over 400 titles.

In 1979, Osborne sold the company and began writing articles for computer magazines. Around this time, he became increasingly sure that computers could never be helpful until they were more mobile.

He was convinced that computers needed to be small and light enough to move with their users and be available anywhere. But Osborne also didn’t know that any existing computer company understood this need.

Or at least they weren’t pursuing it.

It wasn’t until March 1980 that Osborne approached engineer Lee Felsenstein with his idea. Like Steve Jobs, Felsenstein was a member of the HomeBrew Computer Club and an ex-Intel engineer. Osborne proposed that a company create affordable, portable computers with installed software. And he wanted Felsenstein to develop the hardware.

The Pivotal Moment

Osborne laptop

With the money Osborne had made from selling his publishing business, he founded Osborne Computer Corporation in 1981.

Felsenstein followed Osborne’s specifications and designed a computer in a portable case. It had a carrying handle and was sturdy enough to survive minor accidents like being dropped. To top it off, it was small enough to fit under the seat of an aeroplane.

Weighing 24 pounds, the machine had a five-inch screen, two floppy disk drives, and a battery pack. Felsenstein installed a full screen’s worth of memory to meet the small screen requirements, and in April 1981, Osborne introduced the Osborne 1 Personal Business Computer. At only $1795 per unit, it costs a little over half the comparable computers.

The company soon shipped around 10,000 computers a month. By September 1981, Osborne Computer Company had its first $1 million sales month. That year, it made $6 million and $68 million the following year.

The Later Years

Though Osborne’s laptop was a fast success, there was heavy competition. Kaypro Computer soon offered a portable computer with the same specs and software but a larger 9-inch screen. Apple’s offerings were also growing, as were IBM’s and Compaq’s - with faster, more advanced software. 

In addition to the heavy competition, Osborne made several business errors. The company struggled to meet demand, dropped production quality, and was overstocked.

The killing blow landed in 1983—two years after the company’s boom. Osborne made the mistake of boasting about an upcoming product months before it could be released. This almost entirely killed any demand for the company’s currently available products, and many dealers began to cancel their orders.

As unsold inventory built up despite the company dramatically lowering the price of the Osborne 1, their sales never recovered. In September 1983, Osborne declared bankruptcy.

How Osborne’s Laptop is Still Relevant Today

Though Osborne recovered from bankruptcy and went on to write successful software, release books, and even work on AI, his career does not still resonate. Osborne was far from the first person to come up with the idea of a portable computer, but he was determined to follow through, which made him memorable.

In 1975, IBM released the first portable computer. At 55 pounds, it was impractical and difficult to transport. A year later, Alan Kay came up with something similar, the Dynabook. Again, it wasn’t practical. In 1979, Bill Moggridge designed the GRiD Compass, which was used by NASA for several years but wasn’t helpful to the everyday consumer.

Adam Osborne saw a gap in the market for a computer that was light enough to carry, small enough to store and had built-in software.

It wasn’t the idea that made Osborne the man who invented the laptop; it was the work he did to pursue it. By combining them, he proved that reading the market and providing something of value was the driving force behind moving computer technology forward.

I’m writing this piece on a laptop. I wouldn’t have done that if Osborne hadn’t understood the need for hardware and software in a bundle that anyone could use. Without his push to satisfy a need, the world of computers - the age of technology and digital strategy - would be very different.

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