In 1981, on this day IBM announced its first Personal Computer: model number 5150, the creation of a team of engineers and designers under the direction of Don Estridge of the Entry Systems Division in Boca Raton, Florida.
IBM announce their first PC: model number 5150Featuring 64 kB of RAM, a single 5.25-inch floppy drive and monitor the system (pictured) would sell for US $3,005. And yet Estridge would never have been able to achieve this price point without the support of key supply chain partners, the Intel Corporation's 16-bit model chip, the CP/M muli-tasking operating system from Digital Research, Inc and of course Microsoft Basic (CP/M was non-exclusively licensed to IBM for a $10 per unit royalty free, Microsoft Basic also shipped onboard competitor products such as the Tandy TRS-80 already selling in Radio Shack stores).
Due to their earlier release, widespread acceptance and of course DRI's brilliant multi-tasking operating system, the IBM PC and its clones dominated the market even after the launch of the technically advanced Apple Macintosh. Early sales of that product would remain disappointingly flat until a power struggle on the board of directors was resolved on May 24th, 1985. President John Sculley was forced out, placing control of the pioneering company in the hands of the visionary Steve Jobs, the head of the Macintosh division who Sculley had been attempting to outster. Unbeknown to Sculley, Jobs had learnt from his early mistakes. He now believed that he had leap-frogged the problem with the ground-breaking concept of a truly personal computer that could potentially render IBM's desktop unit hopelessly obsolete long before the decade was out.