I thought the Osbourne effect was that they announced the new model prematurely. Their sales tanked because nobody wanted to buy the “old” (current) model and the new model wasn’t ready, hence they went bust.
Yes, that's what I and everybody else (except for 1 or 2 people apparently) mean by the "The Osborne Effect".
BTW, I've got an Osborne 1 in the garage if anybody wants to make an offer on it. It booted off 5" floppies and everything worked the last time I powered it up (probably about 5 years ago).