Technology Revolution: The History of the PC

Hey everyone. Welcome back. 

 

Computers are ubiquitous. Tablets; lap tops; desk tops. Even our cell phones these days are basically hand held computers - built with the power and technology to do some pretty amazing things. When considering the impact of computer technology, it is amazing to think that some of these companies are barely 50 years old. How is that something so powerful, influential, and time consuming has come to dominate our lives in such a short span of time? 

 

A while back, long time listener Jeremy asked that I dive into the history of computers - and while covering the entire history of computers would be quite extensive and extend beyond United States, I hope you all don’t mind our minor detour from the Gilded Age to take a look into our recent past and discover our history with the personal computer. When did they first arrive? How did they become such household necessities? And how did they alter the American business and educational landscape?

 

Grab your cup of coffee, peeps. Let’s do this. 

 

Before I dive into this background, I do want to plug an episode I did a few years back that focused on women in technology - specifically their work around computers. I have linked it in the show notes for this episode so if you haven’t listened to it yet, consider listening when you are done with this episode as I explore more about the early days of the super computer. 

 

Although computers date back to the nineteenth century, the devices we know and love - or love to hate - are really a product of World War II. That is when J. Presper Eckert and John W. Mauchly developed the Electronic Numerical Integrator and Computer - or ENIAC - at the Moore School at the University of Pennsylvania for the U.S. Army in 1945. The machine was enormous - taking up an entire room and weighing 30 tons, but it could compute calculations in record time - much faster than humans. This of course led to an increase in math-based research and innovation. After the War, Eckert and Mauchly left the University and joined the private sector, signing on with Remington Rand and created the first commercial computer in 1951, known as the Universal Automatic Computer, or UNIVAC for short. But IBM - one of the most dominant computer and technology companies of the twentieth century - was on Remington Rand’s tales and quickly eclipsed Rand - outselling them by 1956. 

 

But how - exactly - did the technology shrink from taking up entire floors and weighing several tons to eventually weighing ounces and - in the case of cell phones - fitting into the palm of our hand? According to economist Richard Langlois, it all came down to the invention of the integrated circuit, which he asserts, quote “created a trajectory of miniaturization, culminating in high-density memory chips and microprocessors - the heart of microcomputers,” end quote. About a decade later in 1969, Marcian E. Hoff Jr. developed the first microprocessor when he was tasked with developing chips for a new electronic calculator for a Japanese manufacturer. Hoff wanted to go beyond just making a chip, which resulted in the Intel 4004 - the tiny piece of circuitry measuring less than an inch - had the same computing power as the ENIAC system that weighed tons and filled out an entire room. By 1972, Intel had improved upon the 4004 to create the 8008 and again in 1974 which turned into the industry standard and led to wide duplication throughout the market. 

 

In the early days of the PC - or microcomputer as they were known - several companies released versions of commercial units. In 1974, using a microprocessor based on the Intel 8008, Scelbi launched the 8H Computer. They focused on scientific and electronic applications and sold about 200 machines, but lost money with the sale of each machine. That same year, Xerox released their PARC Alto which used a graphic interface where icons, windows, and a mouse all worked together on a single interface. The Alto was different in that it could also work with other Altos on a local area network to share files and print on a Xerox printer. But it wasn’t until 1975 that the U.S. had its first commercially successful microcomputer. 

 

Ed Roberts, a former military man, founded Micro Instrumentation Telemetry Systems - or MITS, in Albuquerque, New Mexico in 1969. Roberts was involved in electronic calculators but as the market turned sour and the price wars of the 1970s threatened his livelihood, Roberts decided to try to salvage his business by going into the kit computer business. He convinced a local bank to loan him $65,000 and secured a bulk deal for microprocessors; he then put the computer kits together with his colleagues and put the Altair 8800 out on the market for $379 - or $439 if you wanted the cover. Adjusted for inflation that would run about $2700 in 2026. Still pricey - but when you price out a desktop Mac its about $1600 before taxes so still within the realm of possible. The computer was featured on the January 1975 cover of Popular Mechanics magazine and demand for the machine exploded. Despite the kit being quite basic - without any bells and whistles or expansion capabilities - the machine outpaced projections and MITS was quickly facing a significant backlog. Excited consumers who wanted to get their hands on a machine had to wait months and the company sold just 2,000 kits that year.  

 

The Altair may not have had much in terms of frills, but it inspired competition and imagination. Since the company had to do everything it could just to fill its orders for the machine, MITS could not even consider upgrades or expansion packs, leaving it to third party suppliers to come up with creative ways to include quote unquote “add ons” to the kits. The Altair also helped fuel the proliferation of computer hobbyists clubs who would gather to tinker with their machines and share information and software. One such club, the Homebrew Computer Club in California, counted two members who would completely remake the computer industry. 

 

Steve Wozniak worked as an engineer for Hewlett Packard and was inspired by the Altair 8800 to make his own computer. A college drop out, Wozniak built a demo and shared the schematics with the members of the computer club for free. The prototype was designed to be connected to a television, which was highly unusual for the time. His friend, Steve Jobs, who was doing contract work for Atari saw the economic potential in the machine and told Wozniak to stop giving away the secrets for free. The duo had collaborated before - selling blue boxes that could apparently make long distance calls without charge - which of course was illegal. But this time, Wozniak and Jobs kept things above board and tried to sell Wozniak’s invention - which would become known as Apple I - first to their employers Atari and HP - neither were interested. 

 

Unable to convince their employers to buy, the friends went into business together, starting Apple Computer, Inc. in 1976. While Wozniak was the technical mind of the company, Job was the visionary. He knew that the computer could be commercially successful - if it was marketed appropriately. As Wozniak went to work refining his existing design, Jobs focused on developing a market for the machine once it was ready. He secured a location to sell the machines - The Byte Store located in Mountain View, California - and partnered with an advertising agency to maximize commercial interest in the machine. While Apple I sold around 200 units, it was Apple II that really made the company a household name. Debuting in 1977, the Apple II came with a video game, Breakout, and was the first computer to reach beyond the computer hobbyist market. Like the Apple I, Apple II could be connected to a television set, which meant it could display color graphics. Even better - the Apple II could be expanded, something very important to Wozniak. It was an idea that took some convincing and actually led to an argument between him and Jobs. 

 

The Apple II did not require the consumer to have prior computer knowledge to enjoy the machine. As economist Richard Langlois asserts quotes, “what made the Apple II so successful was its compromise between technology and marketing,” end quote. Job ensured that the machine looked good and was marketed effectively, but it was not built with the top of the line parts or material so costs were kept manageable. However, Wozniak still ensured there was a place for the enthusiast, leaving room in the system for consumers to enhance or expand their product if they wanted to. Enjoying the best of both worlds, the Apple II exploded in popularity - selling millions of units between 1977 and 1993. 

 

As Jobs and Wozniak were working on remaking the consumer computer hardware market, two other young men were focused on the software side. Early computers were ironically pretty low tech - they used paper-tape readers and cassette recorders to store and retrieve programs. In the 1970s this evolved with the invention of the floppy disk but then Gary Kidall figured out how to write code for an operating system. The Control Program for Microcomputers - or CP/M was an operating system built for the 8080 microcomputer and it was soon the dominant operating system for the microcomputers on the market. Until Bill Gates and Paul Allen developed the Beginners All-Purpose Symbolic Instruction Code, or BASIC. Gates and Allen believed that their code could improve the Altair’s performance and suggested as much to the folks at MITS. The only problem was they did not have a machine to verify their claims - thus the first time they tested their theory was during their presentation. Luckily for them, the test worked and MITS decided to license their software.   

 

Now before you think this is going to be an episode solely focused on Microsoft and Apple, rest assured. Shortly after Apple II hit the market in 1977, Radio Shack released its first desktop computer, the TRS-80. Like the Apple II, the TRS-80 did not require the user to have any advanced knowledge of computers and it came ready to use right out of the box. It was less fancy than the Apple II, but it was also less expensive, making it a more economical choice for thrifty consumers. For several years the consumer computer market was mainly shared between Apple, Radio Shack, and Commodore. Most of the competition was in the field of software as small firms and programmers developed things like word processors and everyone’s favorite tool ever - excel. 

 

But in 1981, IBM finally decided to enter the commercial computer market. Founded in 1911 as the Computing Tabulating Recording Company or CTR, IBM had been a major innovator for decades - but had thus far stayed away from the microcomputer space. Once IBM decided to develop a microcomputer, historian Martin Campbell-Kelly argues, the company basically legitimated the PC industry and quote “unleashed the desktop revolution,” end quote. Economist Richard Langlois called IBM’s model the paradigm - setting the tone for the industry for the rest of the decade. 

 

Essentially, IBM built a basic computer that was built for expansion and upgrading. They broke with past practice of internal sourcing and utilized third party vendors to build a computer that was focused more on usability than being on the cutting edge in terms of technological innovation. IBM hoped to crack into the business market and built their machines so that they were ready for expansion and upgrading. Their first model, the 5150 used the MS-DOS operating system and I am dating myself here in saying I remember that god awful system. Like they hoped, IBM was the first to be widely adopted by industry and was very quickly cloned leading a proliferation of desktop computers hitting the marketplace. IBM completely outpaced even their own projections and by 1983, IBM controlled roughly 26% of the personal computer market. 

 

Smelling the heat, Apple launched its MacIntosh in 1984 - even sponsoring a superbowl ad to generate interest. The machine had a price tag of $2500 and came fully stocked with pre-loaded applications like MacPaint and MacWrite. Despite his ability to successfully market a product, Steve Jobs would be forced out of Apple just a year later and would not rejoin the company until 1997. 

 

As I mentioned before, software was another area of competition and growth - and really makes what we know as a computer - and there is no bigger powerhouse than Microsoft. Just as Jobs was losing his job with Apple, Microsoft continued apace, releasing the operating system you either love - or love to hate - Windows! The OS - as the cool kids say - embraced a graphical user interface and of course had all the things we’ve come to expect such as drop down menus and scroll bars. The company went public the following year at $21 per share, raising $61 million dollars - making founder Bill Gates the youngest billionaire in history - who was just 31 years old at the time. By the end of the 1980s, Microsoft was the largest software company based on sales. Of course, Microsoft’s dominance continued well into the 1990s, particularly with its launch of Windows 95, which sold north of 7 million copies in just over a month. 

 

By the 1990s computers were pretty much everywhere. Companies relied on computer software to maximize efficiency and schools throughout the country wanted desktops for students to make sure they weren’t behind the curve. Apple even donated several of their Apple II models, introducing computers to many kids for the first time. Of course, the 90s is also when the world wide web starts to take off - but that is a different history for a different episode. Suffice it to say, by the end of the decade computers were ubiquitous and have only taken on new forms as the years have gone on. These days, homes are equipped with tablets and laptops - further miniaturized versions of the computer - and of course our smart phones which in the most basic explanation possible - combine the technologies of a telephone and computer. 

 

But like we saw with the railroads during the Gilded Age, and banking during the 1980s, there was - and is - a dark side to the expanded technology. While the personal computer helped bring the world wide web into the classroom, workplace, and home, it came at a cost. In 1998, Microsoft was charged with violating anti-trust laws over accusations it drove competitors out of business, settling in 2001. And if you’ve been paying attention to the news lately, then you know that Bill Gates has some explaining to do for the personal company he kept and islands he visited. 

 

And Apple hasn’t exactly fared much better. The company faced criticism for contributing to e-waste and the corporation - as well as its then-CEO Steve Jobs - faced a lawsuit for securities fraud. Jobs passed away in 2011 and Apple has been managed by Tim Cook ever since. After dominating the personal computer industry, IBM took a bit of a dive in the consumer market and stopped producing PCs. Today they are kind of into everything - it’s hard to wrap my head around it all. It looks like they’ve made several partnerships - some of them more concerning than others. 

 

In the span of a few short decades, technology remade the world in ways we could not fathom. From oversized machines occupying entire rooms to annoying little devices constantly interrupting your marathon reading session, the computer has changed the way we consume everything from media to music to news. What was once an exciting adventure - a way to explore a new frontier - has evolved into a weary awareness of - and sometimes animosity toward - the power and influence vested in these machines. More and more people are advocating for shutting off the screen and getting back to an analogue life - of course that is tied more to the internet than the computer specifically, but considering the computer’s role in the spread and popularity of the internet, it is part and parcel of the equation. I know this elder millennial has tried to make more of an effort to de-digitize my life - and I say this as someone who was super excited to mess around with the MS-DOS system that only had a word processor. And no mouse! 

 

Who knows what the next iteration of technology looks like. Whatever it is, it will be one for the history books. 

 

My thanks to Jeremy for suggesting this episode topic. As someone who is very very low tech, I appreciated trying to increase my limited knowledge about computers. I always enjoy fielding your requests, so please keep them coming. You can submit your requests via the social media channels or through my website at www dot civics and coffee dot com. 

 

THanks, peeps. I will see you next time.