History Series: IBM PC

History of the IBM PC: 42 Years Ago

Why It Was So Important

Bill Petro
ILLUMINATION
Published in
6 min readAug 11, 2023

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IBM PC. Image: Wikipedia

Forty-two years ago, the IBM PC was released.

On August 12, 1981, IBM announced its first “personal computer,” though it had previously been famous for its IBM System/370 mainframe computer. I operated one of these mainframes in a raised-floor data center in the early ’80s.

The PC was officially called the IBM Model 5150 and sported a 4.77 MHz Intel 8088 microprocessor. It had been in development for a year in a secret “skunkworks” lab in Boca Raton, FL, under the direction of Bill Lowe.

It cost $1,565 and targeted consumers and professional users, especially students (who could afford it) and business users. In today’s dollars, it would have cost $4,455.

Back in the day, I watched someone who knew how to use a VisiCalc spreadsheet build a pricing forecast for me on the “green screen.” His fingers flew over the keyboard. It was amazing.

Did it catch on?

The PC exceeded IBM’s expectations by over 800%!

IBM was shipping 40,000 PCs a month, which was a lot then, with over half going into homes. IBM licensed the character of Charlie Chaplin‘s “The Little Tramp” for their advertising campaign.

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Bill Petro
ILLUMINATION

Writer, historian, technologist. Former Silicon Valley tech exec. Author of fascinating articles on history, tech, pop culture, & travel. https://billpetro.com