Purportedly, the new Executive model from Osborne Computer was priced at $2,195 and came with a 7-inch (179 mm) screen, while competitor Kaypro produced a computer with a 9-inch (229 mm) screen for $400 less. The Kaypro computer had already begun to cut into sales of the Osborne 1 (a computer with a 5-inch (127 mm) screen for $1,995) but inventories of the Osborne 1 cleared out, and customers switched almost entirely to the Kaypro.
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Apparently, while sales dipped after the initial announcement, they eventually began to pick up, and cash started flowing into the company. Then a vice president discovered some fully equipped motherboards (worth $150,000) but no other parts to remake the older models. Some time and a few decisions later, $2 million - far more than anybody expected - were spent for the CRTs, RAM, floppy disk drives, and remolded cases. It was then that the company folded due to debt.
It seems, therefore, that while the pre-announcement myth has been prevalent in the computer industry for years, its manifestation in the Osborne computer's case is somewhat exaggerated.