• • • • • The IBM Personal Computer, commonly known as the IBM PC, is the original version and progenitor of the hardware. It is model number 5150, and was introduced on August 12, 1981. It was created by a team of engineers and designers under the direction of of the IBM Entry Systems Division in. The generic term was in use before 1981, applied as early as 1972 to the 's, but because of the success of the IBM Personal Computer, the term 'PC' came to mean more specifically a desktop microcomputer compatible with IBM's Personal Computer branded products. Within a short time of the introduction, third-party suppliers of peripheral devices, expansion cards, and software proliferated; the was substantial in standardizing a platform for personal computers. 'IBM compatible' became an important criterion for sales growth; after the 1980s, only the family kept a significant share of the market without compatibility with the IBM personal computer. Contents [] History Rumors (IBM), one of the world's largest companies, had a 62% share of the market in 1981.

In the late 1970s the new industry was dominated by the,,, 's, and various machines. With $150 million in sales by 1979 and projected annual growth of more than 40% in the early 1980s, the microcomputer market was large enough for IBM's attention. Other large technology companies such as (HP), (TI), and had entered it, and some large IBM customers were buying Apples, so the company saw introducing its own personal computer as both an experiment in a new market and a defense against rivals, large and small. In 1980 and 1981 rumors spread of an IBM personal computer, perhaps a miniaturized version of the, while acknowledged that it had discussed with IBM the possibility of manufacturing a personal computer for the American company.

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The Japanese project, codenamed 'Go', ended before the 1981 release of the American-designed IBM PC codenamed 'Chess', but two simultaneous projects further confused rumors about the forthcoming product. Data General and TI's small computers were not very successful, but observers expected to soon enter the computer industry, and other large companies such as,,, and were designing their own microcomputers. Whether IBM had waited too long to enter an industry in which Apple and others were already successful was unclear.

An observer stated that 'IBM bringing out a personal computer would be like teaching an elephant to tap dance.' Successful microcomputer company 's fiscal 1980 revenue was $12 million. A single IBM computer in the early 1960s cost as much as $9 million, occupied one quarter acre of air-conditioned space, and had a staff of 60 people; in 1980 its least-expensive computer, the, still cost about $13,500. The 'Colossus of ' only sold through its internal sales force, had no experience with resellers or retail stores, and did not introduce the first product designed to work with non-IBM equipment until 1980. Another observer claimed that IBM made decisions so slowly that, when tested, 'what they found is that it would take at least nine months to ship an empty box'.

As with other large computer companies, its new products typically required about four to five years for development. IBM had to learn how to quickly develop, mass-produce, and market new computers.

While the company traditionally let others pioneer a new market—IBM released its first commercial computer a year after Remington Rand's in 1951, but within five years had 85% of the market—the personal-computer development and pricing cycles were much faster than for mainframes, with products designed in a few months and obsolete quickly. Many in the microcomputer industry resented IBM's power and wealth, and disliked the perception that an industry founded by needed a latecomer so staid that it had a strict dress code and employee songbook. The potential importance to microcomputers of a company so prestigious, that a popular saying in American companies stated 'No one ever got fired for buying IBM', was nonetheless clear., which described itself as 'The Newsweekly for Microcomputer Users', stated that 'for my grandmother, and for millions of people like her, IBM and computer are synonymous'. ('The Small Systems Journal') stated in an editorial just before the announcement of the IBM PC. Rumors abound about personal computers to come from giants such as Digital Equipment Corporation and the Company. But there is no contest.