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TANDY. The Fort Worth-based Tandy Corp. has the broadest reach of any computer manufacturer through its 8,012 Radio Shack stores. The firm introduced its first small computer, the TRS-80, in 1977. A newer version of the TRS-80 (popular models now cost $999) has become the largest-selling computer of all time, and Tandy now commands 40% of the small-computer market. Tandy recently introduced the first pocket computer, which shows only one line of information and sells for $249.
APPLE. The story of Apple Computer has by now become part of American folklore. The business was officially founded in 1977 by Steven Jobs and Stephen Wozniak, two college dropouts who scraped together $1,300 from the sale of a Volkswagen to build their first prototype. In 1980 Apple's revenues topped $184 million, and the public offering of its stock in December was one of the biggest and most successful stock launchings in the history of Wall Street. The company is now aiming its sales effort primarily at the educational market, under the assumption that children who are raised on Apples are likely to buy Apples for themselves when they get older. A basic version of its hot-selling Apple II costs about $1,435. The firm recently introduced the larger Apple III model, which is expected to help push sales this year to $250 million.
COMMODORE. The PET computer (cost: $995), which is manufactured by Commodore International, based in Norristown, Pa., is the bestselling personal computer in Europe. The company has not been a major factor in the U.S. market, but Commodore President James Finke says: "We've got 60% of the market in Europe, and we're now ready to compete head on with anyone." This month it started running full-page ads in leading U.S. newspapers that read: COMMODORE ATE THE APPLE. This spring the company will introduce the VIC 20 computer, aimed at the home market and selling for $299.95. Commodore sales this year are expected to grow by 40% to $185 million.
Beneath computerdom's Big Three, a host of other companies, including Hewlett-Packard, Texas Instruments, Zenith and Atari, are scrambling for a share of the growing market. Such large, well-established computer firms as Digital Equipment, Data General and Xerox are reportedly about to introduce home-size machines.
Moreover, the industry is anxiously awaiting the entry of International Business Machines. Thus far, the Armonk, N.Y., behemoth (1980 sales: $26 billion) has shunned the personal computer market; its smallest model costs about $10,000. But sales of big mainframe computers are not growing as fast as those of the small machines, and experts believe that IBM will not ignore the potential profits in the new market. Says William D. Barton, president of the Datel computer store in Manhattan: "IBM's entry into the field is imminent." IBM has not yet announced any plans to market small machines, but late last year it opened its first retail stores in Baltimore and Philadelphia. These may be the beginning of a network that will eventually provide outlets for the new smaller models.