After a 12-month development, IBM announced its new Personal Computer on August 12, 1981. The US$1,565 base model included 16KB of RAM, CGA graphics, and an input jack, relying on the user to provide a cassette deck (disk drives were optional and far more expensive).
Rivals such as RadioShack and Apple were unconcerned, as they had many times more dealers, large support networks, extensive software libraries, cheaper products, and models with better performance. Steve Jobs bought one to dissect and was unimpressed by some of its old-fashioned tech. In its hubris, Apple took out a full-page ad proclaiming “Welcome, IBM. Seriously.” But it failed to recognise the weight a company like IBM carried with businesses.
Even though IBM’s product was inferior in many ways to its cheaper competitors, businesses saw…