The ZX81 was launched on 5 March 1981 in two versions (though with identical components) – a pre-assembled machine or a cheaper kit version, which the user could assemble himself. Both versions were manufactured in Dundee, Scotland by Timex Corporation at the company's Dryburgh factory. Timex had not been an obvious choice of manufacturing subcontractor, as the company had little previous experience in assembling electronics. It was a well-established manufacturer of mechanical watches but was facing a crisis at the beginning of the 1980s. Profits had dwindled to virtually zero as the market for mechanical watches stagnated in the face of competition from the digital and quartz watches. Recognising the trend, Timex's director, Fred Olsen, determined that the company would diversify into other areas of business.