Personal Computer News


Timex Quits US Home Market

 
Published in Personal Computer News #051

Timex Quits US Home Market

Timex has quite the home computer market in the US.

The decision means the end of the line for the ZX81 and Spectrum in America and raises questions about the prospects for the QL in that country.

Under its licensing agreement with Sinclair, Timex sold a range of micros in the US which were essentially the same as the ZX81 and Spectrum but in different casings.

The Timex decision is not totally unexpected. The company had been finding the going tough for some time (Issue 25). Even with the TS1000 (the ZX81) officially priced at $49 and discounted down to $15 before Christmas, the company has not been able to hold on to its share of the market.

Announcing the decision, CN Jacobi, vice-president of marketing and sales, said: "We believe the instability in the market will cause the value of inventories to decline, making it difficult to make a profit."

The company, however, says it will continue to honour warranties and provide after-sales service.

Timex's withdrawal from the US market poses problems for Sinclair, which was earning a five per cent royalty on every machine sold.

More serious is the threat to the credibility of Sinclair products at a time when Sinclair is planning to launch the QL in North America.

The company was anxious last week to distance itself from the circumstances surrounding the Timex decision.

"Sinclair do not believe the conditions described by Mr. Jacobi will in any way affect the market for the QL," it said.

But it has clearly given up hope for the ZX81 and Spectrum. Nigel Searle, Sinclair's managing director, visited the US last week and said that the company has no plans to re-enter the US market with these products, pinning its hopes instead on the QL.

Timex is the latest in a line of manufacturers to have withdrawn from America's highly volatile home computer market. Texas Instruments and Mattel are two other well-known names.

Meanwhile, back in the UK, there were still no signs of the QL being delivered to customers. This means that Sinclair is now running two weeks late on its promised 28-day delivery.