The Timex Computer Corporation emerged as a significant player in the home computer market during the early 1980s. Timex ventured into the realm of personal computing, driven by a vision to create affordable and accessible technology. Danny Ross, as the Vice President and COO, played a pivotal role in this journey, overseeing operations and leading the charge in a rapidly evolving industry.
Early Life and Education
Danny Ross was born and raised in a small town in Louisiana. Growing up in a tight-knit community, he developed an early interest in business and technology. His academic journey began at Louisiana Tech University, where he pursued a degree in mathematics and computer science.
In the 1960s, the field of computer science was in its infancy. Ross recalls working with a 16K computer, programming in Fortran with punch cards. This experience laid the groundwork for his future endeavors in the tech industry.
After completing his degree, Ross joined IBM, where he spent two years deepening his understanding of computers and their applications. This experience provided him with insights into the workings of the tech world and set the stage for his subsequent career moves.
From IBM to Timex
Following his tenure at IBM, Ross transitioned to ITIL Corporation, a new company focused on computer leasing. This role allowed him to gain expertise in finance, a critical component of the technology business landscape.
After his time at ITIL, he took on a position at Memorex Corporation, where he further honed his skills in finance and technology. It was during this period that he was approached by a headhunter about a potential opportunity at Timex, which was looking to establish its computer division.
Intrigued by the prospect of working with a brand as esteemed as Timex, Ross submitted his resume and was hired. He found himself at the helm of a new venture that would challenge the norms of the computing industry.
Meeting Clive Sinclair
One of the first orders of business for Ross at Timex was to meet with Clive Sinclair, a visionary inventor and entrepreneur known for his groundbreaking work in personal computing. Sinclair was instrumental in shaping the company’s approach to product development.
Ross describes Sinclair as a brilliant yet eccentric figure, whose dual personality shone through in his interactions. In public, Sinclair was charismatic and engaging, effortlessly captivating audiences with his presentations. Behind the scenes, however, he was a genius driven by an unrelenting quest for innovation.
Sinclair’s vision for affordable computing aligned perfectly with Timex’s goals. Sinclair’s ZX-81, and the Timex-branded version, changed the landscape of home computing.
The Launch of the Timex/Sinclair 1000
The Timex/Sinclair 1000 was groundbreaking, marketed as the world’s first computer available for less than $100. This pricing strategy aimed to democratize technology, making computers accessible to a broader audience.
On the day of the launch, people lined up outside Macy’s department store, eager to purchase the innovative new computer. The event was not just about selling products; it was a strategic move to generate press coverage and establish Timex in the computer market.
Press Coverage and Initial Success
The press coverage surrounding the Timex/Sinclair 1000’s launch was extensive, with articles highlighting Timex’s entry into the computer market. This media attention was crucial for building brand recognition and establishing credibility in a competitive landscape dominated by companies like Apple and Commodore.
To further bolster its presence, Timex hired a public relations firm and an advertising agency. The PR firm, Ruder and Finn, employed innovative strategies to promote the brand, ultimately earning a Silver Anvil Award for their efforts.
Simultaneously, the advertising team, led by Bill Campbell and Peter Schweitzer, crafted impactful campaigns that resonated with consumers. Their slogan, “The power is within your reach,” encapsulated the brand’s mission to make technology accessible to everyone.
As the Timex/Sinclair 1000 gained traction, Timex continued to expand its product offerings, delivering additional computer systems and software titles. The company’s commitment to innovation and affordability solidified its position in the home computer market, achieving a remarkable 28% market share under Ross’s leadership.
Furthermore, the company engaged in grassroots marketing efforts, reaching out to local schools and communities to promote computer literacy.
Bill Campbell and Advertising Innovations
Bill Campbell played a crucial role in shaping Timex’s marketing strategy. Although initially overlooked for the marketing director position, his later successes at Apple and other tech giants highlighted his capabilities.
Campbell’s approach to marketing was innovative, focusing on creating emotional connections with consumers. He understood that technology could be intimidating for many, and he sought to simplify the message. By emphasizing the user-friendly nature of Timex products, he helped demystify computing for the average person.
Under his guidance, advertising campaigns were designed to showcase real-life applications of Timex computers. This approach helped consumers visualize how they could benefit from owning a Timex product, leading to increased sales and market penetration.
Campbell’s legacy extended beyond Timex; he became a mentor to many Silicon Valley leaders, influencing the marketing strategies of companies like Google and Amazon.
Market Challenges and Competition
Despite its initial success, Timex faced significant challenges in a rapidly evolving market. Competition intensified as established companies like Texas Instruments and Commodore began to lower their prices, forcing Timex to reconsider its pricing strategies.
As competitors introduced more sophisticated products at lower price points, Timex struggled to maintain its market share. The company’s reliance on a single product line left it vulnerable to shifts in consumer preferences and technological advancements.
Additionally, the home computer market was becoming saturated. New entrants were emerging, and consumer expectations were rising. Timex needed to innovate continuously to keep pace with competitors who were investing heavily in research and development.
The pressure to adapt led to a decline in profitability. Timex’s products, while groundbreaking at launch, began to lose their appeal as consumers sought out more advanced features and capabilities elsewhere.
Exploring International Manufacturing
In an effort to cut costs and improve profitability, Timex began exploring international manufacturing options. The company initially produced computers in Dundee, Scotland, and Lisbon, Portugal, but sought to expand its operations to more cost-effective locations.
As labor costs in traditional manufacturing hubs rose, Timex looked towards Asia, particularly South Korea and later China. This shift aimed to leverage lower labor costs and access to emerging markets.
The move to international manufacturing was seen as essential for the company’s survival. It allowed Timex to remain competitive in pricing while attempting to maintain product quality.
The Attempt to Enter the Chinese Market
Timex’s ambition to enter the Chinese market was a significant part of its international strategy. In the early 1980s, China was beginning to open up to foreign investment, presenting a lucrative opportunity for technology companies.
The company arranged meetings with Chinese government officials to explore possibilities for manufacturing and distribution within the country. Timex’s representatives traveled to Guangzhou, where they encountered a vastly different technological landscape.
During these meetings, Timex aimed to showcase the potential of its computers and the benefits of collaboration. However, the lack of existing infrastructure and technology in China posed challenges. There was little familiarity with personal computing, which made it difficult to convey the value of Timex products.
Ultimately, the discussions took an unexpected turn. China’s real interest was in Timex’s gyroscope business, which led to a halt in negotiations.
The Discontinuation of Timex’s Computing Division
The Timex Computer Corporation’s journey came to an unexpected halt as the market dynamics shifted dramatically. The initial successes, driven by innovative pricing strategies and enthusiastic consumer adoption, could not sustain the pressures of increasing competition and declining profit margins.
As competitors like Texas Instruments and Commodore began to undercut prices, Timex found itself in a precarious position. The aggressive pricing strategies that had once attracted consumers now threatened the company’s financial viability. The need to lower prices further eroded profit margins, leading to a cycle of cost-cutting that ultimately compromised product quality.
By the mid-1980s, the landscape had changed. The introduction of more sophisticated and feature-rich computers by competitors created a demand that Timex struggled to meet. This inability to innovate quickly enough ultimately led to the decision to discontinue its computing division.
The closing of Timex’s computing division was not merely a result of poor sales; it was a culmination of strategic missteps and external pressures. The once-promising venture ended as the market shifted, leaving Timex to refocus its efforts on its core watch business.
Post-Timex Career and Ventures
After the closure of Timex’s computing division, Danny Ross transitioned into new ventures that leveraged his extensive experience in technology and operations. He moved into the realm of venture capital, where he sought to invest in and nurture emerging technology companies.
One of Ross’s notable achievements post-Timex was his involvement in developing technologies that helped monetize content on the internet. As digital media began to flourish, he recognized the potential for monetization strategies that could benefit content creators and publishers alike.
His insights into the evolving digital landscape allowed him to contribute to solutions that transformed how businesses approached online content. Companies like Orbitz, Travelocity, and Priceline adopted technologies that Ross and his team developed, enabling them to effectively monetize online traffic.
