How a typewriter reseller became the world's largest computer manufacturer
In the 1980s, one company dominated the home computer market, selling as many units as the rest of the industry combined. From its origins in Canadian typewriter sales to the legendary Commodore 64, this is the story of a high-stakes industry titan built on aggressive price wars.
The roots of Commodore International lie not in silicon, but in the 1950s typewriter trade. Founded by Jack Tramiel and Manfred Kapp, the company began as Commodore Portable Typewriter in Toronto. After navigating a massive fraud scandal involving their financier, Atlantic Acceptance, and pivoting from adding machines to electronic calculators, the firm reorganized in 1976 as the Bahamian-based Commodore International.
The company's ascent was fueled by a brutal 'price war' strategy. By slashing prices on the VIC-20 and the iconic Commodore 64, Tramiel targeted the mass market. The VIC-20 became the first computer to surpass one million units in sales, while the C64 eventually shipped approximately 22 million units, making it the best-selling computer until the Raspberry Pi's rise in 2019. At its peak in late 1983, quarterly sales reached $49 million.
However, internal instability threatened this dominance. In 1984, at the height of Commodore's financial success, an internal power struggle led Tramiel to resign. He subsequently purchased Atari's consumer division, effectively turning a former leader into a rival. While the 1985 launch of the Amiga 1000 introduced advanced multitasking and graphics, the company struggled to compete against the rising tide of IBM PC-compatibles and Nintendo consoles.
The era of dominance ended in decline. Mismanagement and intense competition from Apple and Sega eroded Commodore's market share. On April 29, 1994, the company filed for bankruptcy and was liquidated. Though the brand name has passed through various hands, including Gateway 2000 and Tulip Computers, the legacy of the C64 and Amiga continues to hold a dedicated cult following.
Source: Commodore International
