Osborne (computer retailer)

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 compatibles 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.^[1]

Star Dean-Willcocks were appointed Administrators to the company in June 1995,^[1] 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,^[1] 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.

References

1. ^ ^{a b c} http://www.sdw.com.au/filerepository/Osborne%20Computers.pdf