What a shock! Only days after coming out from under rigorous bank supervision, Clive Sinclair sells his computer company to Amstrad, his leading competition in the English home computing market. A larger scale version in the U.S. would be Commodore suddenly selling out to Atari!
However, my feelings about this move is far different than my feelings when Timex left the American computer market. Here’s why. For some time it has been evident that Clive was casting his eyes toward other endeavors. Scientific wizard he might be, but financial genius he wasn’t. Sinclair Research has been fighting off bankruptcy for several months, and was under the control of a team assembled by their leading creditors. Many in the computer business were fearful of what would happen when control reverted to Clive Sinclair on about April 1. Eccentric as he was, he might have announced new products, cut off support for old products, announced another electric car, no one knew. What has transpired is probably the best possible outcome for those of us who love our Timex/Sinclairs.
Who is Amstrad? The first time I heard of Amstrad was at last summer’s Consumer Electronics Show in Chicago (see June 1985 SUM). At the show Amstrad was showing their CPC6128, a 128K CP/M based computer with one disk drive, monitor and word processor for about $500! Amstrad first entered the English market as a manufacturer of high quality, low cost stereo equipment.
In June 1984 they introduced their first home computer. Since then they have risen to become the #2 home computer manufacturer in England behind Sinclair. Financially they seem to have built a solid cash reserve and realize good markups on their products by manufacturing their machines themselves, different than Sinclair who always “farms out” their work. Further, they have gained the confidence of the British public at a time when many other English computer companies were having a hard time or even going out of business.
Amstrad computers are not known so much for their technical sophistication nor are they considered on the leading edge of new research, using the venerable Z80 chip and the CP/M disk operating system. But their strength is being able to take time-tested technology and packaging it in new ways and at extremely attractive prices. Their marketing savvy is a wonder to behold.
Sinclair on the other hand is just the opposite on almost every point discussed in the above two paragraphs. Sinclair made many technological firsts but financially failed to reap as he should have because of his lack of marketing ability.
I believe that this “merger” is going to be a boon to us. Amstrad has indicated that it will strongly push the Spectrum line. I can envision the QL possibly being sold outright to a group of investors who will start a new company devoted exclusively to marketing and expanding this great Sinclair computer. Meanwhile, some of the advanced research already aearing completion in the Sinclair Research labs will surely show up in new Amstrad products, leading Amstrad to leapfrog their competition. Possible new products rumored include a combination IBM PC and QL compatible machine, portable computers with the outstanding Sinclair flatscreen, and a Macintosh/Atari ST type computer with color monitor and disk drive for $500! Now these are just rumors, but the two best companies in England to pull off such a feat have just become one, and no better chance exists than this to see such things come to pass.
Amstrad has already established a small presence in the American market, and has already entered an agreement with Sears to help import and distribute part of their current computer line.