How Tandy Computers Took Over the PC World Before Vanishing Forever

If you’re anything like me, there was something special about going to a Radio Shack during the 1980s and 1990s. Looking at store shelves filled with computers, games, and every electronic bit you could hope for was fascinating. It was the adult version of Toys R Us.

Among the awesome shelf discoveries were Tandy computers, which, for a while, were the reigning king of the computer market. This was true until a little-known company, IBM, decided to enter the personal computer market and blow up the entire industry. 

With this in mind, let’s look at a personal brand favorite of mine and see how Tandy took over the computer world only to become a distant memory. 

The TRS-80 Is Born

In 1977, a decade after Charles Tandy acquired a company known as Radio Shack in 1963, the TRS-80 was born. Officially known as the Tandy 80, this computer went on sale on August 3, 1977. While the Apple I was already on the market, Tandy’s introduction of this machine allowed it to receive credit for popularizing the idea of the home computer. 

Selling Thousands

While Tandy was selling the TRS-80 for only $500 ($2,600 today), it believed it would sell around 3,000 units. This number was chosen because that’s how many Radio Shack stores were open. However, the TRS-80 was considered so affordable that it sold 50,000 units in the first month alone and, by the end of 1977, had 60% of the computer market. 

TRS-80 Model III

The TRS-80 was hugely popular but was also plagued with some hardware issues. As a result, Tandy introduced the TRS-80 Model III toward the middle of the 1980s, when the company still controlled 40% of the computer market. 

Laptops And More

Around the same time, Tandy introduced the TRS-80 Model III, it also introduced the Model 100 laptop, the TRS-80 Pocket Computer, and more. Even the arrival of the Tandy 1000 ensured Tandy had firm control of the computer market, with a 25% market share in 1986. 

The “CoCo”

While the TRS-80 still reigned supreme, up-and-comers like Atari were releasing color-based computers. Tandy updated the TRS-80 Color Computer known as “CoCo.” Responding to Commodore and Atari, the CoCo was widely considered one of the best computers under $1,000 and could easily be upgraded at home. 

Radio Shack Support

One of the biggest reasons Tandy had such a meteoric rise was Radio Shack’s support. Tandy owners could either buy upgraded parts in Radio Shack and add them to the computer themselves or have any Radio Shack store provide full support for the Tandy computer lineup. This was a win-win for consumers. 

Beginning of the End

The end of the 1980s looked promising for Tandy, Commodore, and Atari in the Personal Computer market—at least until IBM joined the race. Unlike Tandy, IBM didn’t rely on its supply chain process but used other vendors to build its computers. This gave IBM a big first-mover advantage, and it quickly became apparent that software makers should support IBM machines first. 

1987 Sadness

When you look back to 1987, even with the release of the Tandy 4000, the company’s response to the wildly popular IBM PCjr, Tandy’s market share was down to 5%. Fast-forward four more years, and its market share was now 3.5%. 

Retail Limitations 

Looking back on Tandy’s troubles, it can be argued that Tandy’s biggest red flag was only selling through Radio Shack stores. Alternatively, IBM, Apple, and other manufacturers like Compaq sold through mail-order and growing big-box retailers. 

Game Over

In May 1993, it became clear that Tandy could no longer compete in the market, so it sold its PC manufacturing factories. As soon as the sale was completed, Radio Shack stores began carrying computers from other manufacturers, including IBM and Compaq. Fast-forward seven years, and by 2000, the Tandy name was gone from retail history, as the company was only known as Radio Shack. 

The image featured at the top of this post is ©Around the World Photos/Shutterstock.com.