Kaypro Advert - October 1984

Built by Andrew Kay's Non-Linear Systems, with the motherboard designed by an out-sourced circuit-design consultant^[1], and created as a direct competitor to the Osborne 1, the Kaypro 2 was for a while a highly popular machine selling around 10,000 units a month at its peak^[2].

The Kaypro 2 was launched at the West Coast Computer Faire in 1982, and by 1983 was selling so well that Non-Linear Systems spun it out into its own company - the Kaypro Corporation.

Osborne, meanwhile, became famous for the "Osborne Effect", when the company announced a new IBM-compatible machine - the Executive - before it was ready, causing dealers to cancel orders and for sales of the "1" to stall.

Although this did lead to Osborne closing a manufacturing plant in New Jersey^[3], Osborne was also losing significant sales to Kaypro thanks to the latter's better storage, bigger screen - 9" compared to the Osborne's 5" - and sturdier metal construction compared to the plastic shell of the "1".

The Osborne Computer company had gone into Chapter 11 bankruptcy at the end of 1983, although sales of its "1" and other machines contined. It finally ceased trading completely in 1985.

The Kaypro II was initially imported and distributed in the UK by CK Computers, in a deal set up by Michael Kilmartin. Kilmartin had achieved some fame previously by setting up the company DRG in order to import the Victor 9000.

This caused friction with ACT, which already had an exclusive deal to import the Victor - rebranded as the ACT Sirius - in the UK.

A third-party advert for the Kaypro 2, showing a small comparison table with its competitor - the Osborne 1. From Personal Computer World, October 1983

By 1984, the Kaypro II was selling for £1,260 (including VAT) - around £5,120 in 2024 money - and came with an alleged £1,500-worth of free software, just like the bundled software offering of the Osborne which it had helped to kill off.

Torrey Pines cliffs, near San Diego, California © nosher.netIn September 1984, Kaypro had just been audited by accountants Peat Marwick, where something surprising had been discovered.

Apparently, Kaypro had been so overwhelmed with parts shipments that it had set up an overflow warehouse in the form of a circus Big Top tent, on a bluff overlooking the sea just outside San Diego in California.

It was filled with "chips, screens, disk drives and circuit boards" but security was none too tight, and $6 million of the $60 million worth of stock appeared to have been stolen^[4].

The company failed to adapt quickly enough to the coming of the IBM PC, and eventually filed for bankruptcy in 1992. That was not a bad run compared to many companies of the era.