Texas Instruments had plans for personal computer domination - a price war nearly brought it to ruin

Date:
Mon, 01 Jun 2026 19:00:00 +0000

Description:
Texas Instruments ended up in a brutal price war that nearly brought it to
the brink

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter In January 1951, Texas-based company Geophysical Service Incorporated underwent a restructuring program.

The company, which developed sophisticated equipment used for surveying in
the seismic industry, was formally renamed as Texas Instruments (TI),
creating what would become a tech industry behemoth. TI boasts a jaw-dropping list of accolades and accomplishments. In 1954, it created the worlds first commercial silicon transistor, building on the pioneering work of Bell Labs. That same year, the company designed and launched the Regency TR-1, the first commercially manufactured transistor radio. Latest Videos From Watch full video here: You may like The HP iPod? 7 forgotten Apple products you didnt even know existed Remember Gateway 2000? How a mouse pad triggered a wave of nostalgia for the home PC company I went back 50 years and played the best Apple-1 games

Impressed yet? Theres more. Four years later in 1958, TI invented the integrated circuit while 1967 saw the creation of the hand-held calculator. The mid-1970s saw big leaps in the digital wristwatch industry with the introduction of an LED watch under $20.

The list goes on, and to be honest it would be exhausting listing them all off.

In 2026, TI remains a major player in the semiconductor industry, ranking among the top 10 producers globally based on sales. But while its still alive and kicking, its safe to say the company has had a few bumps along the road.

One of these, which transpired in the 1980s, was described as a Black Monday type catastrophe for the company - but it was several years worth of Mondays. Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over. The great TI-99/4A price war In the late 1970s, the fledgling personal computing market was booming and Texas Instruments was among a string of companies at the forefront of this revolution.

Already a highly successful electronics manufacturer, TI wanted a piece of
the pie, butting heads with IBM, Apple , and Tandy Corporation with its
iconic TRS-80 device.

Its first major launch in this domain came in 1979 with the release of the TI-99/4, which by all accounts performed well. Its second updated version in 1981, the 99/4A, was primed to be a monumental hit, and to some extent it
was. What to read next 'Just imagine what could get done' How this US
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The 99/4A boasted a simplified design compared to its predecessor, a full-travel keyboard, and improved graphics capabilities. It was also significantly cheaper than the original model - half the cost , to be
precise.

Naturally, this all created a big draw for consumers. But a confluence of issues created a spiralling situation that cost the company dearly. First and foremost, the device suffered from a chronic lack of software availability, which severely impeded users.

Market conditions were also fierce, and TI found itself in a serious price
war with competitors.

Notably, the 99/4A was released shortly before the Commodore VIC-20. The latter immediately pursued an aggressive strategy to claw customers away from TI by lowering the price, thereby forcing TI to follow suit.

This war raged on for months and by late 1982 TI was shipping a whopping
5,000 devices from its Lubbock factory in Texas. Within the space of a year
it was selling the device at a significant loss for just under $100.

According to archived reports from TexasMonthly , in two quarters across 1983 the 99/4A cost TI a staggering $400 million in losses. July that year saw the company post its first quarterly loss in its history and its stock dropped 29 points.

In a 2017 op-ed for IEEE Spectrum , Walden C " Wally " Rhines, who served as the executive VP of TIs semiconductor group, said the company eventually sold 2.8 million units, most of them at a significant loss.

The impact of this price war on TI was immense. In October 1983 the company discontinued the 99/4A and production officially ceased in March 1984.



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