Kaypro Sales Growth

Although the first Kaypro II portable personal computers were shipped only on year ago in June 1982, the rugged, metal-cased Kaypro compuer line has expanded dramatically during the past 12 months and is now in the industry's #3 position, after Apple and IBM, in independent computer stores.

Although these may be surprising conclusions, David Kay, Kaypro's vice president for marketing, speaking before an audience at San Diego State University, reported that the Kaypro II has expanded rapidly in the marketplace from a total production and shipment of 14,000 machines in 1982, to projected totals of over 160,000 machines in three different models in 1983.

According to Kay, the Kaypro computer has become the top-selling CP/M computer in the industry, and is clearly the fastest-selling portable in the marketplace. Declaring publicly that "minis and terminals are dead," Kay predicted that portables will overtake desktop machines by mid-1984, and that Kaypro will be responsible for 20 percent of the market for full-function personal computers by 1986.

This industry ranking is further corroborated by Dr. Portia Isaacson's widely-regarded Future Computing report, "Analysis of Computer Stores: First Quarter 1983." Based on early data accumulated during the fourth quarter of 1982, the report graphically shows Kaypro in third place among $3,000-level machines with 11.7 computers sold per store. This is based on last year's figures in which only 6 percent of the nation's computer outlets reported carrying the Kaypro line, which while true at the time has since been dwarfed by Kaypro's current distribution network of 750 independent dealers.

Kay said that by the close of June, Kaypro will have produced and shipped 54,000 Kaypro II machines, and that during July the company will produce 4,000 each of the Kaypro models II and 10, with another 5,000 of the Kaypro 4. During the last four months of 1983, the company is slated to produce 5,000 Kaypro II machines per month, 6,000 Kaypro 4 machines each month; and 10,000 Kaypro 10s per month. By year's end, the company expects to have produced and shipped 82,000 Kaypro IIs, 38,000 Kaypro 4s and 54,500 Kaypro 10s.

David Kay said he qualifies full-function machines as having "a full professional keyboard, a large high-resolution screen at least 9 inches in size and capable of displaying a full typewritten page of information 80 columns wide by 24 lines deep, and at least two disk drives with capacities of at least 160K each -- so that users have the ability to make copies of their disks for storage and other uses. Anything less is not a full-function personal computer," Kay said.

In a clear note of indignation, David Kay criticized a number of industry practices which he says are deceptive to both the industry and to customers. "At the recent COMDEX and NCC industry trade shows," he said, "I noted several emerging industry practices which should be exposed for what they are. First, I found several larger companies offering personal computers for under $1800, but when I questioned their booth personnel at some length, it developed that several of the necessary components including display screens and second drives were extra-cost add-ons." At the same time, Kay said, "I noted that several of the low-capacity producers of home or toy computers are trying to represent their products as full-function personal computers, which of course , they do not."

"There is already enough confusion about personal computers among the industry and among potential purchasers," Kay said. "I feel it's a decided disservice to add to this confusion," he concluded.

("Kaypro Portable Personal Computers Now in Number Three Position" Press Release, June 1983)