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We had no idea that it was going to be as big as it was.

We're cutting back on advertising-- we can't cut back On advertising, and rod said, well, let me make this Really clear-- we're sold out.

Announcer:

Compaq computer corporation Delivered its first portable personal computer In January of 1983.

By the end of the year, the firm had sold $111 million Worth of the machines.

A figure that company executives say Exceeded the first year sales of any firm In american business history.

Bill aulet:

That was the first time where There was a ripple at ibm.

That being said, we had seen other people come in-- amdahl, Hitachi-- and they come and they rise, And then they go back down.

And we will defeat them in the end.

There was kind of a feeling that something was going on Out there with respect to the pc world And somehow or other ibm wasn't getting The share that it wanted.

Now, I know ibm was getting a big share, But they wanted more.

And so people started paying a little bit of attention.

With a clone that is actually offering more portability, For example, becomes a successful notion like that, Then isn't it the case that ibm would or even has gone in there And taken that market to some extent?

That's the danger of playing the ibm compatible game.

There was complete conviction among the wall street Public and the press public.

Well, enjoy it while you can because ibm Is going to have a portable and then it's sayonara.

Wall street hit a record high again today.

One of the better performers was ibm, up more than five points This week alone.

One of the reasons is ibm's huge success In the tough home computer market, and the rumor That there is more to come.

What was ibm going to do, and when Was it going to actually happen, and how successful would it be?

We were always concerned about ibm.

I think anyone else in the computer business Ought to be very frightened, and I think everyone else is.

Jim harris:

Ibm was arrogant. Some manager got po'd at us and said, kind of like a hitman, Go design a portable and take those guys out-- tired of them.

Announcer:

The compaq personal computer's Main selling point is its high compatibility with the ibm pc.

Yet ibm is now bringing its own portable pc to the marketplace.

Announcer:

It's called the fud factor.