From time to time, I see the phrase “Commodore stock scam” or something similar come up in discussion or in books. Commodore, in case you don’t know, was a high-flying computer company in the 1980s that was literally making computers as quickly as they could sell them while Apple struggled for its survival, and was in the enviable position of being the main supplier of chips for its competitors. Imagine if Intel sold computers at retail next to HP and Dell, while still selling chips to Dell. That was Commodore in 1984. I don’t have 1984 figures, but in 1985, Commodore had 38% of the computer market all to itself. IBM and its clones, combined, had 49%. Apple had 13%.
But a decade later, Commodore had squandered all of that away and was out of business. That’s why Robert X. Cringely sums up Commodore as Irving Gould‘s stock scam, then goes back to writing about Apple.
The real story is more complicated than that. More interesting, too.
David Farquhar is a computer security professional, entrepreneur, and author. He started his career as a part-time computer technician in 1994, worked his way up to system administrator by 1997, and has specialized in vulnerability management since 2013. He invests in real estate on the side and his hobbies include O gauge trains, baseball cards, and retro computers and video games. A University of Missouri graduate, he holds CISSP and Security+ certifications. He lives in St. Louis with his family.