Too late to edit but will correct myself slightly because the above might mislead: The C128
did sell well for a 1980's 8-bit home computer - about 2.5 million sold made it one of the best selling 8-bit computers ever.
It just didn't sell well for Commodore compared to the Commodore 64 and the Amiga. As a replacement for the Commodore 64, it was a sales disappointment. Most other manufacturers would have been thrilled with a failure like that, however.
That said, perhaps more accurate would be to say that using CP/M to position the C128 that was didn't help much - even of the people who bought a C128, most never used CP/M. Though to some it might have been what allowed them to convince parents it was a "serious computer".