10 Reasons Most Computer Manufacturers Didn't Make It

Of all the companies that started out manufacturing computers, only a handful of them still remain in business today. Call it a corporate version of natural selection if you will, but in the computer manufacture industry, as with most things in life, only the strong survive. The following are ten reasons why most computer makers didn’t make it:

1. Litigation – Some manufacturers just couldn’t hold it together in the face of legal battles over market share. Such was the case with Eagle Computers, who built high-quality IBM PC clones that caused IBM to come after them, and they were forced to settle out of court with IBM.
2. Poor Vision – Some companies, like Wang and AST, didn’t have the foresight to see the direction that PC’s were headed, and failed to make the necessary adjustments that would keep them afloat. As a result, when the industry began to change and evolve they were left behind in the dust.
3. Poor Focus – Computer companies like Commodore which initially established niche markets, did not focus primarily on their computer business and failed to keep up with their competitors who focused primarily on building and marketing computers.
4. Acquired by Competitors – For various reasons, many smaller computer makers were bought out or merged with larger competitors. Financial or competitive reasons were typically the driving force behind these moves.
5. Contraction – Some former manufacturers of computers are still in operation, such as Xerox and Radio Shack, but have exited the computer market in favor of other core business ventures. This move is usually one that is made out of a financially-driven decision to help streamline operations.
6. Dealer Relations – Other manufacturers had strained relations with their dealerships. This made marketing and sales of their brand more difficult, which eventually led to cash flow issues. Examples of this are Processor Technology and, to an extent, Commodore.
7. Switching to Support Role – In some cases, companies have chosen to provide support hardware or software for computers rather than build their own, as was the case with Stardent, Inc. Unfortunately for Stardent, they eventually failed anyway.
8. Bankruptcy – Manufacturers like Zepto were unable to maintain solvency despite having an innovative and high-quality product, as well as a niche market. Their sales could not be sustained however because of their highly specialized market, and low profit margins.
9. Ahead of Their Time – Computer manufacturers might have a good concept or technology that just doesn’t have a strong enough demand at the time to market their product effectively. Case in point: Multiflow, which specialized in mini-supercomputers that were built on the VLIW design.
10. Bad Reputation – Liebermann Computers made a living out of over-selling and over-pricing some pretty run-of-the-mill units and features with bizarre marketing strategies. It eventually caught up with them and they are no longer in the biz.

Taken From My ISP Finder