Osborne 1 Kaypro Michael Dell pet food billion computer system components
At their introduction in 1981, the US$1,795 price of the Osborne 1 and its competitor Kaypro was considered an attractive price point; these systems had text-only displays and only floppy disks for storage. By 1982, Michael Dell observed that a personal computer system selling at retail for about US$3,000 was made of components that cost the dealer about $600; typical gross margin on a computer unit was around $1,000. The total value of personal computer purchases in the US in 1983 was about $4 billion, comparable to total sales of pet food. By late 1998, the average selling price of personal computer systems in the United States had dropped below $1,000.
