Entries

International Directory of Company Histories International Directory of Company HistoriesInternational Directory of Company HistoriesLeading American Businesses Further reading

NON JS

Hewlett-Packard Company

Hewlett-Packard Company

3000 Hanover Street
Palo Alto, California 94304
U.S.A.
Telephone: (650) 857-1501
Toll Free: (800) 752-0900
Fax: (650) 857-7299
Web site: http://www.hp.com

Public Company
Incorporated: 1947
Employees: 86,200 (2001)
Sales: $45.2 billion (2001)
Stock Exchanges: New York Pacific Frankfurt London Paris Tokyo Zurich
Ticker Symbols: HWP (2001); HPQ (2002)
NAIC: 334111 Electronic Computer Manufacturing; 334112 Computer Storage Device Manufacturing; 334119 Other Computer Peripheral Equipment Manufacturing; 333313 Office Machinery Manufacturing; 334413 Semiconductors & Related Device Manufacturing; 334613 Magnetic & Optical Recording Media Manufacturing; 334519 Other Measuring & Controlling Device Manufacturing; 334510 Electromedical & Electrotherapeutic Apparatus Manufacturing; 511210 Software Publishers; 541512 Computer Systems Design Services; 811212 Computer & Office Machine Repair & Maintenance

Since merging in 2002, Hewlett-Packard (HP) and Compaq have created the new HP (Hewlett-Packard Company), serving more than one billion customers in more than 160 countries on five continents. The new HP is a market leader in all the essential components of business infrastructureservers, storage, management software, imaging and printing, personal computers, and personal access devices. The new HP is the leading consumer technology company in the world, offering a range of technology toolsfrom digital cameras to PCs to handheld devices.

HP Began As Maker of Test and Measurement Products

Hewlett-Packard had its beginnings with Stanford University graduates, William Hewlett and David Packard, who were encouraged by Professor Frederick Terman to start their own business. With only $538 and workspace in a garage behind Packards rented house in Palo Alto, California, the two men began working on a resistance-capacity audio oscillator, a machine used for testing sound equipment. After assembling several modelsbaking paint for the instrument panel in Packards oventhey won their first big order, for eight oscillators, from Walt Disney Studios, which used them to develop and test a new sound system for the animated film Fantasia.

On January 1, 1939, Hewlett and Packard formalized their venture as a partnership, tossing a coin to decide the order of their names. Hewlett won. In 1940, with a product line of eight items, the two men moved their company and its three employees to a building in downtown Palo Alto.

During World War II, Terman, who was then in charge of antiradar projects at Harvard, contracted his former students to manufacture microwave signal generators for his research. When the war ended, HP took full advantage of the growth in the electronics sector, particularly in the defense and industrial areas. The founders also defined their respective roles in the company: Hewlett would lead technological development, and Packard would be in charge of management. Hewlett-Packard Company was incorporated in 1947, and by 1950 had 70 products, 143 employees, and revenues of $2 million.

HP introduced a revolutionary high-speed frequency counter, the HP524A, in 1951. This device, which reduced the time required to measure radio frequencies from ten minutes to about two seconds, was used by radio stations to maintain accurate broadcast frequencies, particularly on the newly established FM band.

The company maintained stable and impressive growth through the end of the decade. In November 1957, Hewlett-Packard offered shares to the public for the first time and moved into a larger complex in the Stanford Research Park.

In 1958, with revenues of $30 million, HP made its first corporate acquisition: the F.L. Moseley Company of Pasadena, California, a manufacturer of graphic recorders. The companys expansion continued in 1959, with the establishment of a marketing office in Geneva, and a manufacturing facility in Boeblingen, West Germany. After adding another factory in Loveland, Colorado, in 1960, Hewlett-Packard purchased the Sanborn Company, a medical instruments manufacturer based in Waltham, Massachusetts, in 1961.

The company gained wider public recognition when it was listed on the Pacific and New York stock exchanges in 1961 and in the Fortune 500 a year later. In 1964, Hewlett-Packard developed a cesium-beam flying clock, accurate to within one-millionth of a second. Company engineers embarked on a 35-day, 35,000-mile world tour to coordinate standard times.

In 1963, Hewlett-Packard expanded its presence in Japan through a joint venture with the Yokogawa Electric Works; and in 1965 it acquired the F & M Scientific Corporation, an analytical-instruments manufacturer, based in Avondale, Pennsylvania. In 1966, the company opened its central research laboratory, which became one of the worlds leading electronic research centers.

HP Moves into Calculators and Computers in the Late 1960s and 1970s

Although primarily a manufacturer of instruments for analysis and measurement, Hewlett-Packard developed a computer in 1966, specifically for its own production control, the HP-2116A, and had no plans to enter the computer market. Two years later, however, HP introduced the HP-9100A, the first desktop calculator capable of performing scientific functions. In 1969, David Packard was appointed deputy secretary of defense in President Richard Nixons administration, and returned to HP as a director in 1972.

A handheld scientific calculator, the HP-35, was partially designed by Bill Hewlett in 1972. It was known as the electronic slide rule. When Texas Instruments entered the market in 1973, Hewlett-Packards device, which retailed at $395, was forced into the high end of the market.

Signaling a change in company strategy, in 1972, Hewlett-Packard made its first decisive move into business computing, a field dominated by IBM and Digital Equipment Corporation, with the HP3000 minicomputer. In spring 1974, despite record earnings and escalating growth, the company refocused on product leadership, and established a new, highly decentralized structure, allowing each of the companys divisions conduct its own research and development.

In 1977, Bill Hewlett relinquished the presidency and later his role as chief executive to John Young, a career HP man determined to make the company successful in the computer market. Although he was chosen by Hewlett and Packard, Young was virtually unknown to the companys customers and 37,000 employees.

HP Introduces Personal Computers and Printers in the 1980s

Hewlett-Packard introduced its first personal computer, the HP-85, in 1980, to a cool reception. Its move into information processing, however, proved successful and the company quickly established itself as a leading computer vendor. A six-year program began to develop architecture and software that would be compatible with existing programs. In the meantime, HP introduced a number of other products, including the HP9000 technical workstation (1982), the HP150 touchscreen PC, the HP ThinkJet inkjet printer (1984), and the HP LaserJet printera phenomenally successful product that came to dominate the printer market soon after its 1984 debut.

Compaq Beginnings: Making IBM Clones

When International Business Machines Corporation (IBM) introduced its first personal computer (PC) in 1982, Compaq was among dozens of other companies, including HP, entering the market with IBM clonescomputers that looked and performed like IBM PCs, but were often less expensive. Compaq set itself apart from other clone manufacturers by producing IBM-compatible PCs that were faster, superior in quality, and offered additional user features. Its unique management team was made up of seasoned professionals from Texas Instruments (TI) and IBM. Compaqs staff also had the technical and business grounding to establish new industry standards on its ownwithout following IBM.

Compaq had come to be in the summer of 1981, when Joseph R. Rod Canion, James M. Harris, and William H. Murto, three senior managers from TI, decided to start their own company, but had not decided on a product. The entrepreneurs eventually decided to build a portable PC that met industry standards set by IBM. With only $1,000 each to invest, Canion, Harris, and Murto approached Ben Rosen, president of Sevin-Rosen Partners, a high-technology venture capital firm in Houston. Rosen, who became Compaqs chairman, offered an initial investment of $2.5 million.

Company Perspectives:

The new HP is a leading technology solutions provider for consumers and businesses with market leadership in fault-tolerant servers, UNIX servers, Linux servers, Windows servers, storage solutions, management software, imaging and printing and PCs. Furthermore, 65,000 professionals worldwide lead our IT services team. Our $4 billion annual R&D investment fuels the invention of products, solutions and new technologies, so that we can better serve customers and enter new markets. We invent, engineer and deliver technology solutions that drive business value, create social value and improve the lives of our customers.

When Compaq arrived on the scene, venture capitalists were beginning to force many entrepreneurs to turn over control of their companies to more experienced management professionals. As Rosenwho had lost a $400,000 investment in another PC start-upexplained in Management Today in 1985, In the early days, it was an area for flamboyant people who transformed their personalities into companies. Now the business requires a very different kind of manager. It has become a very unforgiving industry.

Key Dates:

1939:
William Hewlett and David Packard enter into a partnership; Hewlett-Packard (HP) is born.
1940:
HP operations begin in Palo Alto, California.
1947:
HP is incorporated.
1951:
HP introduces the HP524A high-speed counter.
1957:
HP shares are offered to the public.
1958:
HP acquires F.L. Moseley Company, manufacturer of graphic recorders.
1959:
HP establishes a marketing office in Geneva and a manufacturing facility in Boeblingen, West Germany.
1960:
HP opens factory in Loveland, Colorado.
1961:
HP purchases the Sanborn Company, a medical instruments manufacturer and is listed on the New York Stock Exchange.
1966:
HP develops its first computer.
1969:
David Packard is appointed deputy secretary of defense under U.S. President Nixon.
1972:
HP introduces a handheld scientific calculator, the HP-35; HP introduces the HP3000 microcomputer.
1977:
Bill Hewlett relinquishes his role as president of HP to John Young.
1980:
HP introduces its first personal computer, the HP-85.
1982:
Compaq Computer Corporation is founded.
1983:
Compaq initial public offering raises $67 million; securities are traded on NASDAQ.
1984:
HPs LaserJet printer makes its debut; Compaq computers are introduced in Europe; Compaq introduces the first Compaq desktop, the Compaq Deskpro.
1985:
Compaq securities begin trading on the New York Stock Exchange.
1986:
Compaq ships its 500,000th personal computer and completes construction of Compaq Main Campus in Houston.
1987:
Compaq manufactures its one-millionth personal computer and opens manufacturing facility in Scotland.
1988:
HPs stock begins trading on the Tokyo stock exchange.
1989:
HP purchases Apollo Computer; Compaq purchases Wang facility in Stirling, Scotland; Compaq introduces Compaq Systempro and the first Compaq notebook PC, the Compaq LTE.
1990:
Compaq establishes East European sales organization and opens office in Berlin.
1991:
HP introduces the 95LX palmtop personal computer; Eckhard Pfeiffer is named CEO of Compaq; Compaq announces its first billion-dollar quarter; Compaq enters the Japanese marketplace and introduces its first modular PC, the Compaq Deskpro/M family.
1992:
Lewis E. Platt replaces Young as head of HP; Compaq introduces its first printer product, the Compaq Pagemarq; Compaq computer training center is established in China.
1993:
Packard retires and Platt is named chairman, president and CEO of HP; Compaq introduces Compaq DirectPlus and delivers first Pentium processor-based products; Compaqs PC Division is split into Desktop and Notebook PC divisions; Presario family is launched; Compaqs printer business is discontinued.
1994:
Compaq surpasses IBM as the number one seller of PCs worldwide; Compaq introduces first sub-notebook, Compaq Aero; Compaq opens a manufacturing facility in Brazil.
1995:
HP launches the Pavilion line of home computers. Compaq is awarded Europes largest-ever PC contract with British Telecom; HP opens manufacturing facility in China; HP acquires Thomas-Conrad and NetWorth.
1996:
HP co-founder, David Packard dies on March 26, 1996; Compaq introduces its handheld PC, the PC companion, and its Armada family of value-priced, flexible notebooks.
1997:
HP acquires Verifone, Inc., maker of in-store terminals for verifying credit card transactions; Compaq announces the new Presario 2000 series and introduces the TFT 500, flat-panel monitor; Compaq acquires Microcom and Tandem Computer Inc.
1998:
Forbes magazine names Compaq its 1997 Company of the Year; the U.S. Environmental Protection Agency names Compaq the Green Lights Corporate Partner of the Year; Compaq is also awarded Novells Service Excellence Award; Compaq acquires Digital Equipment Corporation.
1999:
HP president Platt retires and Lucent-executive Carly Fiorina is appointed president and CEO.
2000:
Compaq acquires assets of Inacom and creates Custom Edge, Inc.; Compaq announces 10-year corporate alliance with The Walt Disney Company; Compaq unveils iPAQ Pocket PC.
2001:
HP co-founder Bill Hewlett dies on January 12, 2001; HP acquires application server specialist Bluestone Software; Compaq creates the AltaVista Company and acquires Shopping.com; Michael D. Capellas is appointed president and chief executive officer of Compaq; Compaq and Yahoo! announce a comprehensive global technology and marketing alliance; Compaq unveils Evo notebooks and workstations; Hewlett-Packard and Compaq announce their planned merger.
2002:
HP and Compaq merge on May 3, 2002; HPQ is unveiled as new stock ticker for combined company.

In 1983, Compaqs consensus management approach, which allowed every division of the company a say in product development, proved valuable. Canion, Compaqs chief executive officer, strongly supported the idea of producing a briefcase-size, or laptop, computer. The marketing research director, however, concluded that the market for such a computer did not exist. Canion relented, and Compaq waited while other companies, including Gavilan Computer Corporation and Data General Corporation, attempted to market such a product and failed.

Meanwhile, Compaq shipped its first two products, the Compaq Portable and the Compaq Plus, and set the standard for portablealthough larger than a briefcasefull-function PCs. In 1983, Compaq shipped more than 53,000 portable PCs throughout the United States and Canada; increased their workforce from 100 to 600; and increased production from 200 machines in January to 9,000 in December. The company recorded $111.2 million in revenues, the most successful first year of sales for a U.S. company.

A key factor in Compaqs growth was a strong cooperative relationship with its dealers. With nearly 90 PCs on the market aimed at business professionals, shelf space was very competitive. Compaq did not have a direct sales force of its own, and, thus, did not compete with its authorized dealers. This arrangement gave dealers more incentive to carry Compaq computers. Compaq also motivated its authorized dealers through what was called Salespaq, through which Compaq paid a percentage of the dealers cost of advertising, sales training, or incentives.

Compaqs ability to develop, produce, and market new products in a very short time period was another key ingredient in its success. Once a product was approved, Compaq undertook all aspects of its development simultaneously; factories were built, marketing and distribution arrangements were made, and engineers refined the product design. The product cycle in the PC industry was typically 12 to 18 months; Compaq delivered in six to nine months. This fast turnaround in product development enabled Compaq to introduce the latest technology before its competitors. In 1984, for example, IBM announced a new version of its PC that experts felt would set back other PC manufacturers. Compaq pulled its resources from every branch of the company, and within six months introduced and shipped its DESKPRO line of desktop PCs. Fifteen months later IBM shipped its portable PC, which was two pounds heavier and offered fewer features than Compaqs portable model. From the first quarter of 1983 to the last quarter of 1984, Compaqs production increased from 2,200 computers to 48,000. Despite the 1984 industry shakeout, Compaq reported an increase in sales to over $500 million. In March 1985, Rosens original investment of $2.5 million increased in value to $30 million.

Compaq in the Late 1980s: New Products and Markets

Expediency in product development also led to a turning point in Compaqs history. In 1985, Intel, a leading manufacturer of microprocessors, wanted to market its powerful new microprocessor, the 80386, as soon as possible. Intel felt confident that a Compaq product based on the new microprocessor would see a quick entry into the market. Their collaboration resulted in Compaqs 1987 introduction of the DESKPRO 386. Based on Intels new chip, this new PC performed over three times faster than IBMs fastest PC, and nearly twice as fast as Compaqs closest competitor. It took IBM nine months to introduce a comparable machine using Intels 80386. By then, Compaq was developing a portable version of its new PC.

In 1986, Compaq became the first company to achieve Fortune 500 status in fewer than four years. From 1986 through 1989, Compaqs revenues increased fivefold to $3 billion, while other PC manufacturersincluding Apple Computer and Sun Microsystemshad setbacks. Much of this growth was due to Compaqs successful marketing efforts in Europe. Led by Eck-hard Pfeiffer, former head of TFs European consumer electronics operation, Compaq began its European campaign in 1984, before most other U.S. vendors. In 1989, Compaq became the number two supplier of business PCs to the European market, achieving $1.3 billion in international sales. With the PC market in Europe growing about 33 percent faster than the U.S. market, Compaq had an edge on other PC manufacturers.

Meanwhile, in 1986, HP introduced its new family of Spectrum computer systems, developed at a cost of $250 million. The project was based on a concept called RISC (Reduced-Instruction-Set Computing), which enabled programs to run at double or triple conventional speed by eliminating many routine instructions. In spite of critics claims that the stripped-down instruction set made the program less flexible and over-specialized, other computer companies soon began developing their own RISC chips.

While market projections for Spectrum were good, and the system itself was state of the art, HP initially failed to capitalize on its technology because of the companys strategy of focusing on markets rather than product lines. Sales efforts, however, were soon redoubled on every level. The company even began joint marketing with telecommunications and peripherals companies previously regarded as competitors.

John Youngs leadership of Hewlett-Packard was highly regarded. The Precision Architecture line gained wider acceptance after a problematic introduction, and came to be seen as a bold gamble. By 1988, Young had restored the companys momentum, with net earnings rising 27 percent during that year. Directors Hewlett and Packard were no longer involved in the day-to-day running of the business, and, in 1987, Walter B. Hewlett and David Woodley Packard, the sons of the founders, were elected to the board. In 1988, the companys stock began trading on the Tokyo stock exchangeits first listing outside the United States. The following year, HP gained listings on four European exchanges: London, Zurich, Paris, and Frankfurt.

In April 1989, Hewlett-Packard paid $500 million for Apollo Computer, a pioneer in the design, manufacture, and sale of engineering workstations. Integrating the two companies and eliminating unnecessary engineers and salespeople proved more time-consuming than anticipated, and as sales dropped, Hewlett-Packard slipped back to second position in late 1989. The company faced a further setback when Motorola Inc. delayed introduction of the advanced microprocessor chip it had promised HP for a new line of workstations.

In November 1989, Compaq introduced the Compaq SYSTEMPRO personal computer and the Compaq DESKPRO 486, utilizing technology known as Extended Industry Standard Architecture (EISA), a hardware design that Compaq developed to challenge IBMs MicroChannel hardware design for its PS/2 PCs. These technologies increased the speed of PCs, enabling them to perform such complex operations as networking and multitasking. An added advantage of EISA was its ability to attract customers accustomed to using more powerful minicomputers and mainframe computers. By incorporating EISA into its new products, Compaq began to set industry standards. While IBM was producing computers based on the MicroChannel technology, many other manufacturers were using EISA technology. Initial sales of the SYSTEMPRO were slow but, as CEO Canion told a Business Week correspondent, We realized we were opening up a whole new market. We knew it would take some time.

Company sales for Compaq for 1990 reached $3.6 billion, with net income of $455 million, record figures for the eighth consecutive year. During that year, Compaq opened new subsidiaries in Austria, Finland, and Hong Kong, and authorizing dealers in the former East Germany, Hungary, Yugoslavia, Argentina, Mexico, and Trinidad. International sales accounted for over half of Compaqs total revenue in 1990, eclipsing North American sales for the first time. Nine new products were introduced during that year, including updated versions of the DESKPRO 386 desktop PC and a high-performance notebook PC, the Compaq LTE 386s/20. By the end of 1990, Compaq had 3,872 authorized dealers throughout the world, over 2,000 of them in North America.

Following a trend that developed in the information processing industry in the late 1980s and early 1990s, HP forged alliances with a number of companies that had previously been competitors. These included Hitachi, a microchip company; Canon, which provided the engines for HPs best-selling laser printer line; and 3Com, with which HP had a marketing and research agreement. Purchases during this period included Eon Systems, a manufacturer of equipment that monitored computer networks; and Hilco Technologies, a maker of factory software in which HP obtained a 25 percent stake.

Early 1990s Difficulties Led to Restructuring at HP

In spite of the new focus on workstation technology and cooperative trade agreements, HP began 1990 with sagging profits and a lackluster consumer response to its new product line. In 1990, earnings fell 11 percent to $739 million, down from $829 million in 1989. David Packard, the retired co-founder of the company, returned to his office to take a more active role in running the business.

John Young, president and CEO, undertook a thorough restructuring of Hewlett-Packard. By eliminating excess layers of management and dividing computer products into two main groups: those sold directly to big customers (workstations and minicomputers) and those sold through discount dealers (printers and PCs). In a move away from the consensus style of management, he set up a virtually autonomous design group within the computer division, and put it in charge of developing a new workstation based on the RISC technology that Digital had helped pioneer. The results were impressive. After only a year of development, the Series 700 workstations were introduced in 1991 to universally favorable reviews. The machines were considered several years ahead of their time, a crucial advantage in an industry where the constant development of new technologies makes products obsolete almost as soon as they reach the market.

HPs 95LX palmtop personal computer, also introduced in 1991, established an important new market in information devices. The 95LX, which retailed for $699, contained built-in Lotus 1-2-3 spreadsheet software, and immediately became a hot seller.

The resurgence of the company was not achieved without a price. HP cut 3,000 positions in 1990 and a further 2,000 positions in 1991. While executives agreed that downsizing was a necessary evil, the staff reductions, together with a more aggressive advertising stance, changed the companys image. When John Young announced his retirement in July 1992, he presided over a dynamic, if less paternalistic, company. His successor, Lewis E. Platt, an executive vice-president and head of the companys computer systems organization, took over in November 1992. Following Packards retirement as chairman in 1993, Platt was named chairman, president, and CEO of HP.

1991 also Brings a Slump to Compaq

For reasons ranging from economic recession and price competition to problems with the flow of distribution, Compaqs sales and earnings fell in 1991 for the first time in the companys history. The DESKPRO 386 PC series continued to be a bestseller, with desktop PCs accounting for close to three-fourths of Compaqs total revenue. In September 1991, a new line of Compaq computers was introduced with Intelligent Modularity. This system, the DESKPRO/M, enabled users to more readily upgrade key components as their needs and the available technology changed, by organizing components into five easy-to-access modules: memory, input/output, EISA/ISA expansion cards, processor, and video graphics controller.

Compaq was forced to alter its established distribution strategy somewhat in 1991; eight of the companys ten most important dealer chains had merged into four. This led Compaq to gradually start authorizing computer consultants and discount chains to sell its products. Direct sales techniques of its own, such as a toll-free hotline, were stepped up as well.

In late 1991, a dramatic management shake-up took place. Following a gloomy board meeting at which a $70 million third-quarter loss was announced, company founder and CEO Canion was forced to resign. Pfeiffer, who had been promoted to executive vice-president and chief operating officer, replaced Canion. A major reorganization of the corporate structure ensued. The company was realigned into desktop and systems divisions. As part of a 1,440-person staff reduction program, about 12 percent of the companys entire work force was laid off. In addition, five high-ranking executives left the organization, including senior vice-president of engineering James C. Harris, the last remaining company founder.

In June 1992, Compaq introduced 16 new products, including the companys first low-cost desktop PCs (COMPAQ Pro-Linea), low-cost notebook PCs (Contura), and upgradeable desktop PCs with advanced graphics and audio capabilities. The same month, Compaq announced the initiation of a new Peripherals Division, a worldwide arm whose mission would be to develop printers and printer-related items. The divisions initial line of products, including the August 1992 debut of the Compaq Pagem printer, launched Compaq into the rapidly growing market for network printers. The printer line was a failure, however, and was abandoned in 1993.

Compaqs Presario Leads a Consumer Push in the Mid-1990s

Under the leadership of Eckhardt, Compaq began a major push into the consumer and home office markets with an effort centered around the Presario line of home computers launched in August 1993. The companys hottest new PC, the Presario line, included models selling for less than $1,500. Compaq sold more than 100,000 Presarios in the first 60 days after introduction, with sales fueled by a $12 million television advertising blitz, the companys first such campaign in three years. In 1993 alone, Compaq sold $500 million worth of Presarios. By 1994, the company managed not only to fend off its low-price competitors, it also surpassed IBM as the number one seller of PCs worldwide.

Not content with its PC dominance, Compaq in the mid-1990s aimed to capture a much wider market. Following the introduction of the Proliant server PCs as its entry into the market for servers (powerful computers used for corporate networks and Internet web sites), the company went after the corporate mainframe and minicomputer market with the launch of the Armada mainframe-class server, the top-of-the-line model which sold for upwards of $100,000. On the lower-end server front, in 1994 Compaq launched the ProSignia VS server, which cost only about five to ten percent more than a desktop PC.

Also in 1994, Compaq revamped its logistics system in order to begin building its PCs to order from a huge stockpile of parts. With a build-to-order system, Compaq would realize significant inventory and manufacturing cost savings.

Other Compaq initiatives of this period included moves into high-speed networking equipment and Internet services/products, as well as the October 1996 launch of a successful line of engineering workstations. Compaq realized astounding growth: revenues increased from $5.79 billion in 1992 to $20.01 billion in 1996; and net income, which had peaked in 1990 at $577 million, registered at $988 million in 1994, $893 million in 1995, and $1.32 billion in 1996. With a wider range of products, Compaq generated about 15 percent of its revenues from the consumer PC market, 48 percent from corporate desktop PCs, and 35 percent from servers and workstations in 1997.

HP Aggressively Expands in PCs in the Mid-1990s

When Platt took over as CEO of Hewlett-Packard in 1992, its share of the personal computer market was a mere one percent. Moreover, PCs accounted for only 5.7 percent of the companys overall revenues of $16.4 billion. By 1995, HP was the fastest-growing maker of PCs in the world, having initially targeted corporate customers. In August 1995, HP went after the home PC market with the launch of the Pavilion line. Throughout this revitalization of the companys PC lines, HP adopted a much more aggressive pricing policy. Its market share soared, with the company leaping to third place in mid-1997, edging out Dell Computer and trailing only Compaq Computer Corporation and IBM. By 1998, Hewlett-Packard derived 19.1 percent of its total revenues of $47.06 billion from the sale of personal computers.

HPs pursuit of personal computer prominence was problematic given that sectors relatively low margins, but Platt felt the company had to be a major player in PCs in order to remain one of the top computer companies in the world. Although Platt did not want HP to be just a peripherals company, the firm continued to churn out successful products in that area: the HP Color LaserJet printer and the HP OfficeJet multifunction machine (a combined printer, fax machine, and copier), both introduced in 1994; and the HP OmniGo 100 handheld organizer, which debuted in 1995. With the Internet and electronic commerce burgeoning, HP in mid-1997 paid nearly $1.2 billion to acquire VeriFone, Inc., a maker of in-store terminals used to verify credit card transactions. HP hoped to combine a personal computer or other electronic device with a VeriFone-derived card reader and appropriate software to create a system with additional payment options for electronic commerce purchases. Also in 1997, HP was added to the companies that comprise the prestigious Dow Jones Industrial Average. Meantime, co-founder David Packard died on March 26, 1996.

HPs revenues had been growing at an annual 20-percent-plus clip from 1993 through 1996, but, in 1997, these increases began to shrink. Sales increased from $38.42 billion in 1996 to $42.9 billion in 1997, or 11.6 percent, then to 47.06 billion in 1998, an increase of 9.7 percent. Net income fell from $3.12 billion in 1997 to $2.95 billion in 1998. Among the reasons for the decline were the Asian economic crisis; HPs slow response to opportunities presented by the explosion of the Internet; and falling prices for personal computers and computer peripherals. In addition, HPs printer lines, especially in the inkjet area, were being buffeted by competition from new, low-cost rivals and declining margins in the PC and printer areas were dragging down the profitability of HP as a whole.

Compaq Acquisitions in the Late 1990s

In February 1997, Compaq released a $999 PC, the Presario 2000, in another aggressive, low-price move aimed at attracting the 60 percent of U.S. households without a PC. Later in 1997 the company acquired, through a stock-for-stock transaction valued at about $4 billion, Tandem Computers Incorporated, a leader in fail-safe high-end servers with annual sales of $2 billion and a sales force 4,000 strong. Compaq also spent $280 million for Microcom, Inc., a provider of devices for remote access to networks.

Moreover, Compaq had its eye on an even bigger deal. In June 1998 the company completed its $9.1 billion acquisition of Digital Equipment Corporation, the number four computer maker in the United States. Digital, which became a subsidiary of Compaq, was a leading maker of high-end workstations and servers, giving Compaq an even greater presence in those markets. Digital also brought to Compaq a 22,000-person service operation for large companiescomputer services having been one of Compaqs weakest areas. The deal increased Compaqs annual revenues to more than $37 billion and vaulted the company into the number two position among all the computer firms in the world (behind only $78.5 million-in-revenues IBM), it also positioned Compaq as one of the world leaders in just about every computer sector. The company was number one worldwide in desktop computers, number three in portable computers, number three in workstations, number one in both PC servers (costing less than $25,000) and entry servers (less than $100,000), and number six in midrange servers ($100,000 to $1 million). In computer services, Compaq was suddenly number three, behind IBM and EDS.

Compaq took a $3.6 billion charge against earnings in 1998 related to the acquisition of Digital and announced plans to cut 15,000 Digital jobs and 2,000 at Compaq. Areas of overlap began to be addressed, such as the folding of Digitals PC production into that of Compaq and the scaling back of Compaqs network equipment unit. However, it would take some time before the full impact of this combinationat the time the largest merger in the relatively short history of computerscould be assessed.

Compaqs transformation from a PC company to a global ITand Internetleader accelerated during 1998, based on the vision of President Pfeiffer, At Compaq, we envision a world where virtually all information is online and people can communicate, conduct commerce and securely access the information they need from anywhere at any time. Through the acquisition of Digital, Compaq acquired AltaVista, the worlds fastest Internet search and navigation guide, and the following year created a separate company, The AltaVista Company, to extend Compaqs Internet leadership position. Compaq also announced that year the formation of Compaq.com, a business division to drive Internet sales of Compaq products and services, and the acquisition of online retailer Shopping.com.

Compaq President Pfeiffer Resigns; Michael D. Capellas Takes Charge

In the wake of disappointing earnings and shareholder suits, President Pfeiffer resigned and was replaced as President and CEO by Michael D. Capellas, who had joined the company in 1998. Capellas issued more layoffs and organized the company around three global businesses groups-Enterprise Solutions and Services, Commercial Personal Computing, and Consumer. A restructuring plan was implemented to drive down costs and operating expenses. During the second half of the year, Compaq returned to profitability, reduced operating expenses and began to focus on increasing growth and stockholder value. Strategic alliances with Microsoft and Oracle were re-energized and a strategic partnership was formed with CMGI, by which CMGI would acquire control of Compaqs Alta Vista business and its related properties (Shopping.com and Zip2). Innovative products and services were introduced, including the Aero 8000, the worlds most secure, mobile and easy-to-use Handheld PC Professional device; and the light-weight portable projector, MP1600.

Capellas saw Compaq guided by a single, focused vision: Everything to the Internet. At the end of 1999, Compaq joined forces with Cable & Wireless to deliver global e-business solutions; in 2000 acquired PC reseller Inacom; and created Custom Edge, Inc., a direct sales unit. In April, a 10-year corporate alliance was announced with The Walt Disney Company. In technology, the iPAQ Pocket PC was introduced and earned the first ZDNet tech Trendsetter Award.

By mid-year, the Compaq started showing significant progress and by the end of the year, revenue was up 10 percent, gross margin was up almost one percentage point, operating expenses were down, operating profit was up more than threefold, and earnings per share more than tripled from 1999. Capellas credited the success to Compaqs enterprise business, particularly the high-end storage and server businesses. Compaq was the number one provider of Web servers, number one in the highest measure of system availability and number one in high-performance technical computing.

1999 HP Plans to Spin Off Noncomputing Lines

In late 1998, HP launched a comprehensive review of its operations and announced in early 1999 its intention to spin off into a separate firm, Agilent Technologies, its noncomputing segments: test and measurement products and service, medical electronic products and service, electronic components, and chemical analysis and service. These segments generated about $7.6 billion in revenues during 1998, or 16 percent of the total. Hewlett-Packard hoped this major divestmentwhich included the companys original lines of businesswould sharpen the firms competitive instincts, energize its workforce, and enable it to become a more aggressive player in the increasingly important sphere of the Internet. The company also announced that upon completion of the spinoff, Platt would step down as chairman and CEO.

In July 1999, HP named the 20-year veteran of AT&T and Lucent Technologies, Carleton (Carly) S. Fiorina as President and CEO. Fiorina was responsible for HPs reinvention as a company that makes the Internet work for businesses and consumers. According to Fiorina, the reinvention of the company resulted from the goal to restructure and revitalize ourselves to recapture the spirit of invention that is our birthright and apply it to meeting customer needs. Under her leadership, HP returned to its roots of innovation and inventiveness and focused on delivering the best total customer experience.

HP revealed a new strategy designed for the Internet, based on Web services to people and businesses through the use of information appliances over infrastructure solutions. HP positioned itself to deliver Web services, intelligent devices and servers and infrastructure of servers and software. By the end of the year, HP had introduced a new brand campaign focusing on the companys history of invention and innovation and introducing a new company logo. Under Fiorinas direction, HP also realigned its businesses into two customer-facing organizations and three product-generation organizations.

In 2000, HP introduced the high-end Superdome server line and announced that it would acquire Bluestone Software, resulting in the further expansion of its Internet software portfolio. A new business initiative, HP e-Inclusion, was introduced. This program addressed the digital divide by fostering sustainable, profitable businesses in developing countries.

Two new software families were introduced in early 2001HP Netaction Software Suite and HP Open View Software Suitethus, uniting its software offerings into a comprehensive platform for developing, implementing and maintaining Internet-based services. A new business organization, HP Services, was announced in March, with responsibilities in consulting, outsourcing, support, education and solutions deployment.

In 2001, Compaq continued to shift its emphasis from hardware to services, comprising 24 percent of Compaqs revenue in 2001. The Global Services unit of the company continued to be the companys strongest segment. Compaqs Alpha microprocessor operations were sold to Intel and a comprehensive global technology and marketing alliance was announced with Yahoo!. Computing on Demand was introduced which would allow customers to purchase a variety of computing resources.

Acquisitions and a Merger of Worldwide Importance

In September HP acquired StorageApps, manufacturer of storage virtualization appliances, and Indigo, a leading commercial and industrial printing systems company. Perhaps the biggest news to the industry occurred on September 3, 2001, when HP and Compaq Computer Corporation announced a definitive agreement to merge, creating a new $87 billion global technology leader.

On May 3, 2002, Hewlett-Packard officially closed its $19 billion acquisition of Compaq Computer Corporation. Compaq investors received 0.6325 shares of Hewlett-Packard for every Compaq share they owned, and Compaq stock ceased being traded. HPQ became the new stock ticker for the combined company. Ms. Fiorina retained her position as Chairman and CEO of the new HP. Former Compaq president and merger coauthor, Michael Capellas, became president of the new HP, with responsibilities for the new companys global business groups, worldwide sales, supply chain management and e-commerce operations. According to Chairman Fiorina, We merged Compaq and HP to create a stronger company to serve our customersa company with a richer portfolio of products and solutions and a deeper services team. The new HP was officially launched on May 7, 2002, with an ad titled We Are Ready.

Principal Subsidiaries

HEWLETT-PACKARD: Hewlett-Packard Puerto Rico; Hewlett-Packard World Trade, Inc.; Heartstream, Inc.; Microsensor Technology, Inc.; VeriFone, Inc.; Hewlett-Packard Asia Pacific Ltd. (Hong Kong); Hewlett-Packard Caribe Ltd. (Cayman Islands); HP Computadores (Brazil); Hewlett-Packard Computer Products (Shanghai) Co., Ltd. (China); Hewlett-Packard de Mexico S.A. de C. V.; Hewlett-Packard Espanola, S.A. (Spain); Hewlett-Packard Europe B.V. (The Netherlands); Hewlett-Packard France; Hewlett-Packard GmbH (Germany); Hewlett-Packard Holding GmbH (Germany); Hewlett-Packard (India) Software Operation Pte. Ltd.; Hewlett-Packard Italiana S.p.A. (Italy); Hewlett-Packard Japan, Ltd.; Hewlett-Packard Korea Ltd.; Hewlett-Packard Ltd. (U. K.); Hewlett-Packard (Malaysia) Sdn. Bhd.; Hewlett-Packard Malaysia Technology Sdn. Bhd.; Hewlett-Packard (Manufacturing) Ltd. (Ireland); Hewlett-Packard Medical Products (Qingdao) Ltd. (China); Hewlett-Packard Microwave Products (M) Sdn. Bhd. (Malaysia); Hewlett-Packard Penang Sdn. Bhd. (Malaysia); Hewlett-Packard S.A. (Switzerland); Hewlett-Packard Shanghai Analytical Products Co., Ltd. (China); Hewlett-Packard Singapore Pte. Ltd.; Hewlett-Packard Singapore Vision Operation Pte. Ltd.; BT&D Technologies Ltd. (U. K.); CoCreate Software GmbH (Germany); Shanghai Hewlett-Packard Company (China); Technologies et Participations S.A. (France). COMPAQ: Digital Equipment Corporation; Microcom, Inc.; Tandem Computers Incorporated; Compaq Computer Australia Pty. Limited; Compaq Computer GesmbH (Austria); Compaq Computer N.V./S.A. (Belgium); Compaq Canada Inc.; Compaq Computer A/S (Denmark); Compaq Computer OY (Finland); Compaq Computer S.A.R.L. (France); Compaq Computer GmbH (Germany); Compaq Computer Hong Kong Limited; Compaq Computer S.p.A. (Italy); Compaq K.K. (Japan); Compaq Computer B.V. (Netherlands); Compaq Computer New Zealand Limited; Compaq Computer Norway A.S.; Compaq Computer Asia Pte. Ltd. (Singapore); Compaq Computer S.A. (Spain); Compaq Computer AB (Sweden); Compaq Computer AG (Switzerland); Compaq Computer Taiwan Limited; Compaq Computer Limited (U. K.).

Principal Operating Units

Chemical Analysis Group; Components Group; Consumer Products Group; Enterprise Computing Solutions Organization; HP Labs; Information Storage Group; LaserJet Solutions Group; Medical Products Group; Personal Systems Group; Test and Measurement Organization.

Principal Competitors

Canon; Dell Computer; IBM; Apple Computer; eMachines; Gateway; NCR; NEC; Siemens; Sony; Sun Microsystems.

Further Reading

Arnst, Catherine, Now, HP Stands for Hot Products, Business Week, June 14, 1993, p. 36.

Arnst, Catherine, et. al, Compaq: How It Made Its Impressive Move Out of the Doldrums, Business Week, November 2, 1992, pp. 146+ .

Bank, David, and Leslie Cauley, Microsoft, Compaq Make Net-Access Bet, Wall Street Journal, June 16, 1998, pp. A3, A8.

Buell, Barbara, Hewlett-Packard Rethinks Itself, Business Week, April 1, 1991.

Burrows, Peter, Compaq Stretches for the Crown, Business Week, July 11, 1994, pp. 140-42.

, Lew Platts Fix-It Plan for Hewlett-Packard, Business Week, July 13, 1998, pp. 128-31.

, The Printer King Invades Home PCs, Business Week, August 21, 1995, pp. 74-75.

, Where Compaqs Kingdom Is Weak, Business Week, May 8, 1995, pp. 98, 102.

Clark, Don, and George Anders, After Split, Outsider May Be Hired As Next CEO, Breaking Tradition, Wall Street Journal, March 3, 1999, pp. A3 + .

Compaq Computer Corporation, Hoovers Handbook of American Business 2002, Austin: Hoovers, Inc., 2001, pp. 398-399.

Compaqs Compact, Management Today, May 1985.

Connor, Deni and Denise Dubie, HP Shores Up Storage, Management Wares, Network World, Nov 5, 2001, p. 10+.

Depke, Deidre A., A Comeback at Compaq?, Business Week, September 23, 1991.

Gannes, Stuart, Americas Fastest-Growing Companies, Fortune, May 23, 1988.

Heller, Robert, The Compaq Comeback, Management Today, December 1994, pp. 66-70.

Goldgaber, Arthur, The Teflon Tech Company: How Long Will Wall Street Give Hewlett-Packard the Benefit of the Doubt?, Financial World, July/August 1997, pp. 90-93.

Hamilton, David P., and Scott Thurm, H-P to Spin Off Its Measurement Operations: Sharper Focus on Computing Will Emerge, Wall Street Journal, March 3, 1999, pp. A3 +.

Hewlett-Packard, Hoovers Handbook of American Business 2002, Austin: Hoovers, Inc., 2001, pp. 712-713.

Hof, Robert, Hewlett-Packard Digs Deep for a Digital Future, Business Week, October 18, 1993, pp. 72-75.

, Suddenly Hewlett-Packard Is Doing Everything Right, Business Week, March 23, 1992.

Hof, Robert, and Peter Burrows, Hewlett-Packard Heads for the Home, Business Week, May 8, 1995, p. 102.

HP Closes Compaq Merger, HP.com, posted May 3, 2002, http://www.hp.com.

HP Fact Sheet, Palo Alto, Calif.: Hewlett-Packard Company, 1998.

Hutheesing, Nikhil, HPs Giant ATM, Forbes, February 9, 1998, pp. 96 + .

HP to Change NYSE Trading Symbol from HWP to HPQ, HP.com, posted May 2, 2002, http://ww.thenew.hp.com.

Kirkpatrick, David, Fast Times at Compaq, Fortune, April 1, 1996, pp. 120 +.

, The Revolution at Compaq Computer, Fortune, December 14, 1992, pp. 80+.

Klein, Alec, As Cheap Printers Score, H-P Plays Catch-Up, Wall Street Journal, April 21, 1999, pp. Bl +.

Kotkin, Joel, The Hottest Entrepreneur in America Is the Smart Team at Compaq Computer, Inc., February 1986.

Linden, Dana Wechsler, and Bruce Upbin, Top Corporate Performance of 1995: Boy Scouts on a Rampage, Forbes, January 1, 1996, pp. 66 + .

Loeb, Marshall, Leadership Lostand Regained, Fortune, April 17, 1995, pp. 217 +.

Losee, Stephanie, How Compaq Keeps the Magic Going, Fortune, February 21, 1994, pp. 90 + .

Me Williams, Gary, Compaq at the Crossroads, Business Week, July 22, 1996, pp. 70-72.

, Compaq-Digital: Let the Slimming Begin, Business Week, June 22, 1998, p. 44.

, Compaq: Theres No End to Its Drive, Business Week, February 17, 1997, pp. 72, 74.

, Mimicking Dell, Compaq to Sell Its PCs Directly, Wall Street Journal, November 11, 1998, pp. Bl, B4.

Me Williams, Gary, et. al, Power Play: How the Compaq-Digital Deal Will Reshape the Entire World of Computers, Business Week, February 9, 1998, pp. 90-94, 96-97.

Nee, Eric, Compaq Computer Corp., Forbes, January 12, 1998, pp. 90 + .

, Defending the Desktop, Forbes, December 28, 1998, p. 53.

, Lew Platt: Why I Dismembered HP, Fortune, March 29, 1999, p. 167.

, What Have You Invented for Me Lately?, Forbes, July 28, 1997, pp. 76 + .

Packard, David, The HP Way: How Bill Hewlett and I Built Our Company, edited by David Kirby with Karen Lewis, New York: HarperBusiness, 1995.

Palmer, Jay, Still Shining: Growth in PC Demand Abroad, Networking Make Compaqs Prospects Bright, Barrons, December 11, 1995, pp. 15-16.

Pitta, Julie, Identity Crisis, Forbes, May 25, 1992.

, It Had to Be Done and We Did It, Forbes, April 26, 1993, pp. 148-52.

Ramstad, Evan, Compaqs CEO Takes Tricky Curves at High Speed, Wall Street Journal, January 5, 1998, p. B4.

Ramstad, Evan, and Jon G. Auerbach, Compaq Buys Digital, an Unthinkable Event Just a Few Years Ago, Wall Street Journal, January 27, 1998, pp. Al, A14.

Stross, Randall E., Whats a High-Class Company Like Hewlett-Packard Doing in a Lowbrow Business Like PCs?, Fortune, September 29, 1997, pp. 129 + .

Uttal, Bro, Compaq Bids for PC Leadership, Fortune, September 29, 1986.

Ward, Judy, The Endless Wave: Eckhard Pfeiffer Has Turned Compaq AroundOnly to Face New Competition, Financial World, July 4, 1995, pp. 32-35.

Webber, Alan M., Consensus, Continuity, and Commonsense: An Interview with Compaqs Rod Canion, Harvard Business Review, July/August 1990.

Whiting, Rick, Compaq Stays the Course, Electronic Business, October 20, 1989.

Wiegner, Kathleen K., Good-Bye to the HP Way?, Forbes, November 26, 1990.

Zell, Deone, Changing by Design: Organizational Innovation at Hewlett-Packard, Ithaca, NY: ILR Press, 1997.

Zipper, Stuart, CompaqLife After Canon?, Electronic News, November 4, 1991.

John Simley (Hewlett-Packard);

Lynn Hall and Robert R. Jacobson (Compaq)

updates: David E. Salamie; Carol D. Beavers

Cite this article
Pick a style below, and copy the text for your bibliography.

  • MLA
  • Chicago
  • APA

"Hewlett-Packard Company." International Directory of Company Histories. 2003. Encyclopedia.com. 29 Jul. 2016 <http://www.encyclopedia.com>.

"Hewlett-Packard Company." International Directory of Company Histories. 2003. Encyclopedia.com. (July 29, 2016). http://www.encyclopedia.com/doc/1G2-2845400055.html

"Hewlett-Packard Company." International Directory of Company Histories. 2003. Retrieved July 29, 2016 from Encyclopedia.com: http://www.encyclopedia.com/doc/1G2-2845400055.html

Hewlett-Packard Company

Hewlett-Packard Company

3000 Hanover Street
Palo Alto, California 94304
U.S.A.
(650) 857-1501
(800) 752-0900
Fax: (650) 857-7299
Web site: http://www.hp.com

Public Company
Incorporated
: 1947
Employees : 124,600
Sales : $47.06 billion (1998)
Stock Exchanges : New York Pacific Frankfurt London Paris Tokyo Zürich
Ticker Symbol : HWP
NAIC : 334111 Electronic Computer Manufacturing; 334112 Computer Storage Device Manufacturing; 334119 Other Computer Peripheral Equipment Manufacturing; 333313 Office Machinery Manufacturing; 334413 Semiconductors & Related Device Manufacturing; 334613 Magnetic & Optical Recording Media Manufacturing; 334519 Other Measuring & Controlling Device Manufacturing; 334510 Electromedical & Electrotherapeutic Apparatus Manufacturing; 811212 Computer & Office Machine Repair & Maintenance

Hewlett-Packard Company (HP) is the second largest computer company in the world, behind only International Business Machines Corporation (IBM). Its offerings in the computer area include hardware ranging from palmtops through personal computers to supercomputers, software, networking products, printers, scanners, and support and maintenance services. In 1998 HP derived 84 percent of its revenues from its computer sector. The remainder came from test and measurement products and service, medical electronic products and service, electronic components, and chemical analysis and service. In March 1999 the company announced that it would spin off these operations as an independent company by mid-2000 in order to sharpen its focus on its computer operations.

Began As Maker of Test and Measurement Products

William Hewlett and David Packard, graduates of Stanford Universitys electrical engineering program, were encouraged by Professor Frederick Terman to start their own business in California. The two men worked in the garage behind Packards rented house in Palo Alto, California. Starting with only $538, the men began work on a resistance-capacity audio oscillator, a machine used for testing sound equipment. After assembling several modelsbaking paint for the instrument panel in Packards oventhey won their first big order, for eight oscillators, from Walt Disney Studios, which used them to develop and test a new sound system for the animated film Fantasia.

On January 1, 1939, Hewlett and Packard formalized their venture as a partnership, tossing a coin to decide the order of their names. Hewlett won. In 1940, with a product line of eight items, the two men moved their company and its three employees to a building in downtown Palo Alto.

During World War II, Terman, who was then in charge of antiradar projects at Harvard, contracted his former students to manufacture microwave signal generators for his research. When the war ended, HP took full advantage of the growth in the electronics sector, particularly in the defense and industrial areas. The founders also decided at that time what their respective roles would be in the company: Hewlett would lead technological development, and Packard would be in charge of management. Hewlett-Packard Company was incorporated in 1947. By 1950 the company had 70 products, 143 employees, and revenues of $2 million.

HP introduced a revolutionary high-speed frequency counter, the HP524A, in 1951. This device, which reduced the time required to measure radio frequencies from ten minutes to about two seconds, was used by radio stations to maintain accurate broadcast frequencies, particularly on the newly established FM band.

The company maintained stable and impressive growth through the end of the decade. In November 1957 Hewlett-Packard offered shares to the public for the first time. It also moved into a larger complex in the Stanford Research Park.

In 1958, with revenues of $30 million, HP made its first corporate acquisition: the F.L. Moseley Company of Pasadena, California, a manufacturer of graphic recorders. The companys expansion continued in 1959 with the establishment of a marketing office in Geneva, and a manufacturing facility in Boeblingen, West Germany. After adding another factory in Loveland, Colorado, in 1960, Hewlett-Packard purchased the Sanborn Company, a medical instruments manufacturer based in Waltham, Massachusetts, in 1961.

The company gained wider public recognition when it was Usted on the Pacific and New York stock exchanges in 1961 and in the Fortune 500 a year later. In 1964 Hewlett-Packard developed a cesium-beam flying clock, accurate to within one-millionth of a second. Company engineers embarked on a 35-day, 35,000-mile world tour to coordinate standard times.

In 1963 Hewlett-Packard expanded its presence in Japan through a joint venture with the Yokogawa Electric Works, and in 1965 it acquired the F & M Scientific Corporation, an analytical-instruments manufacturer, based in Avondale, Pennsylvania. In 1966 the company opened its central research laboratory, which became one of the worlds leading electronic research centers.

Moved into Calculators and Computers in the Late 1960s and 1970s

Though primarily a manufacturer of instruments for analysis and measurement, Hewlett-Packard developed a computer in 1966. The HP-2116A was developed specifically for HPs own production control; the company had no plans to enter the computer market. Two years later, however, HP introduced the HP-9100A, the first desktop calculator capable of performing scientific functions. In 1969 David Packard was appointed deputy secretary of defense in President Richard Nixons administration. Packard returned to his company as a director in 1972.

During this time, HP developed a handheld scientific calculator called the HP-35, known as the electronic slide rule. Designed partially by Bill Hewlett, it was introduced in 1972. When Texas Instruments entered the market in 1973, Hewlett-Packards device, which retailed at $395, was forced into the high end of the market.

Hewlett-Packard made its first decisive move into business computing, a field dominated by IBM and Digital Equipment Corporation, with the HP3000 minicomputer, introduced in 1972. This signalled a major change in company strategy. In the spring of 1974 Hewlett and Packard decided, despite record earnings, that the company was growing too fast. Refocusing on product leadership, the founders established a new, highly decentralized structure, letting each of the companys divisions conduct its own research and development.

In 1977 Bill Hewlett relinquished the presidency to John Young, a career HP man determined to make the company successful in the computer market. Although he was chosen by Hewlett and Packard, Young was virtually unknown to the companys customers and 37,000 employees. Nonetheless, he replaced Hewlett as chief executive officer a year later.

Introduced Personal Computers and Printers in the 1980s

Hewlett-Packard introduced its first personal computer, the HP-85, in 1980. The markets initial reaction was cool, causing Young and other managers to investigate new, IBM-compatible designs, which were introduced in the mid-1980s. HPs broad move into information processing proved successful; the company quickly established itself as a leading computer vendor. Like other vendors, however, HP had designed each of its major computer lines for a specific use, making each model incompatible with the others. This resulted in redundant research and development and product support costs, and limited expansion capabilities for customers. In response to these problems, HP began a six-year program to develop architecture and software that would be compatible with existing programs. In the meantime, HP introduced a number of other products, including the HP9000 technical workstation (1982), the HP150 touchscreen PC, the HP ThinkJet inkjet printer (1984), and the HP LaserJet printera phenomenally successful product which came to dominate the printer market soon after its 1984 debut.

In 1986 the company introduced its new family of Spectrum computer systems, developed at a cost of $250 million. The project was based on a concept called RISCReduced-Instruction-Set Computing. RISC enabled programs to run at double or triple conventional speed by eliminating many routine instructions. In spite of criticss claims that the stripped-down instruction set made the program less flexible and overspecialized, other computer companies soon began developing their own RISC chips.

While market projections for Spectrum were good, and the system itself was state of the art, HP initially failed to capitalize on its technology because of the companys strategy of focusing on markets rather than product lines. Sales efforts, however, were soon redoubled on every level. The company even began joint marketing with telecommunications and peripherals companies previously regarded as competitors.

Company Perspectives

Our basic business purpose is to create information products that accelerate the advancement of knowledge and improve the effectiveness of people and organizations.

John Youngs leadership of Hewlett-Packard was highly regarded. The Precision Architecture line gained wider acceptance after a problematic introduction, and came to be seen as a bold gamble. By 1988 Young had restored the companys momentum, with net earnings rising 27 percent during that year. Directors Hewlett and Packard were no longer involved in the day-to-day running of the business, and in 1987 Walter B. Hewlett and David Woodley Packard, the sons of the founders, were elected to the board. In 1988 the companys stock began trading on the Tokyo stock exchangeits first listing outside the United Statesthen the following year gained listings on four European exchanges: London, Zürich, Paris, and Frankfurt.

In April 1989 Hewlett-Packard paid $500 million for Apollo Computer, a pioneer in the design, manufacture, and sale of engineering workstations. Integrating the two companies and eliminating unnecessary engineers and salespeople proved more time-consuming than anticipated, and as sales dropped, Hewlett-Packard slipped back to second position in late 1989. The company faced a further setback when Motorola Inc. delayed introduction of the advanced microprocessor chip it had promised HP for a new line of workstations.

Following a trend that developed in the information processing industry in the late 1980s and early 1990s, HP forged alliances with a number of companies that had previously been competitors. These included Hitachi, a microchip company; Canon, which provided the engines for HPs bestselling laser printer line; and 3Com, with which HP had a marketing and research agreement. Purchases during this period included Eon Systems, a manufacturer of equipment that monitored computer networks; and Hilco Technologies, a maker of factory software in which HP obtained a 25 percent stake.

Early 1990s Difficulties Led to Restructuring

In spite of the new focus on workstation technology and cooperative trade agreements, HP began 1990 with sagging profits and a lackluster consumer response to its new product line. Like many of its larger competitors, it had fallen victim to an unwieldy bureaucracy that discouraged entrepreneurial decision-making on the part of group managers. In 1990 earnings fell 11 percent to $739 million, down from $829 million in 1989. David Packard, the retired cofounder of the company, returned to his office to take a more active role in running the business.

John Young, president and CEO, responded to the crisis by undertaking a thorough restructuring of Hewlett-Packard. He eliminated excess layers of management and divided computer products into two main groups: those sold directly to big customers (workstations and minicomputers) and those sold through discount dealers (printers and PCs). In a deliberate move away from the consensus style of management, he set up a virtually autonomous design group within the computer division, and put it in charge of developing a new workstation based on the RISC technology that Digital had helped pioneer. The results were impressive. After only a year of development, the Series 700 workstations were introduced in 1991 to universally favorable reviews. The machines were considered several years ahead of their time, a crucial advantage in an industry where the constant development of new technologies makes products obsolete almost as soon as they reach the market.

HPs 95LX palmtop personal computer, also introduced in 1991, established an important new market in information devices. The 95LX, which retailed for $699, contained built-in Lotus 1-2-3 spreadsheet software, and immediately became a hot seller. Realizing its potential as the wave of the future, Hewlett-Packard quickly began to look for alternative markets for the palmtop, including navigation software and real estate applications.

The resurgence of the company was not achieved without a price. Reluctantly violating its no-layoff policy, HP cut 3,000 positions in 1990 and a further 2,000 positions in 1991. While executives agree that downsizing was a necessary evil, the staff reductions, together with a more aggressive advertising stance, changed the companys image. When John Young announced his retirement in July 1992, he presided over a dynamic, if less paternalistic, company. His successor, Lewis E. Platt, an executive vice-president and head of the companys computer systems organization, took over in November 1992. Following Packards retirement as chairman in 1993, Piatt was named chairman, president, and CEO of HP.

Aggressively Expanded in PCs in the Mid-1990s

When Piatt took over as CEO in 1992, Hewlett-Packards share of the personal computer market was a mere one percent. Moreover, PCs accounted for only 5.7 percent of the companys overall revenues of $16.4 billion. By 1995 HP was the fastest-growing maker of PCs in the world, having initially targeted corporate customers. In August 1995 HP went after the home PC market with the launch of the Pavilion line. Throughout this revitalization of the companys PC lines, HP adopted a much more aggressive pricing policy. It had traditionally charged a premium price for its personal computers, but began pricing them no higher than five percent above the lowest-priced comparable models on the market. Its market share consequently soared, with the company leaping all the way to third place in mid-1997, edging out Dell Computer and trailing only Compaq Computer Corporation and IBM. By 1998 Hewlett-Packard derived 19.1 percent of its total revenues of $47.06 billion from the sale of personal computers.

Hewlett-Packards pursuit of personal computer prominence was problematic given that sectors relatively low margins, but Piatt felt the company had to be a major player in PCs in order to remain one of the top computer companies in the world. Although Piatt did not want HP to be just a peripherals company, the firm continued to churn out successful products in that area: the HP Color LaserJet printer and the HP OfficeJet multifunction machine (a combined printer, fax machine, and copier), both introduced in 1994; and the HP OmniGo 100 handheld organizer, which debuted in 1995. With the Internet and electronic commerce burgeoning, HP in mid-1997 paid nearly $1.2 billion to acquire VeriFone, Inc., a maker of in-store terminals used to verify credit card transactions. HP hoped to combine a personal computer or other electronic device with a VeriFone-derived card reader and appropriate software to create a system providing consumers with additional payment options for their electronic commerce purchases. Also in 1997 HP was added to the companies that comprise the prestigious Dow Jones Industrial Average. Meantime, cofounder David Packard died on March 26, 1996.

Hewlett-Packards revenues had been growing at an annual 20-percent-plus clip from 1993 through 1996, but in 1997 these increases began to shrink. Sales increased from $38.42 billion in 1996 to $42.9 billion in 1997, or 11.6 percent, then to 47.06 billion in 1998, an increase of 9.7 percent. Net income fell from $3.12 billion in 1997 to $2.95 billion in 1998. Among the reasons for these declining fortunes was the Asian economic crisis, which began in July 1997; HPs slow response to the opportunities presented by the explosion of the Internet; and falling prices for personal computers and computer peripherals. In addition, HPs printer lines, especially in the inkjet area, were being buffeted by competition from new, low-cost rivals and declining margins in the PC and printer areas were dragging down the profitability of HP as a whole.

1999 Plan to Spinoff Noncomputing Lines

In late 1998 the company launched a comprehensive review of its operations. It announced in March 1999 that as a result of this review it intended to spin off into a separate firm its non-computing segments: test and measurement products and service, medical electronic products and service, electronic components, and chemical analysis and service. These segments generated about $7.6 billion in revenues during 1998, or 16 percent of the total. Hewlett-Packard hoped this major divestmentwhich included the companys original lines of businesswould sharpen the firms competitive instincts, energize its workforce, and enable it to become a more aggressive player in the increasingly important sphere of the Internet. The company also announced that upon completion of the spinoff by mid-2000, Piatt would step down as chairman and CEO. A search committee was formed by the company board to find a successor; this person might be an outsider, which would be a company first. In any event, it was clear that the turn of the millennium marked the end of an era, and the beginning of a new one, for Hewlett-Packard.

Principal Subsidiaries

Hewlett-Packard Puerto Rico; Hewlett-Packard World Trade, Inc.; Heartstream, Inc.; Microsensor Technology, Inc.; Ver-iFone, Inc.; Hewlett-Packard Asia Pacific Ltd. (Hong Kong); Hewlett-Packard Caribe Ltd. (Cayman Islands); HP Computadores (Brazil); Hewlett-Packard Computer Products (Shanghai) Co., Ltd. (China); Hewlett-Packard de Mexico S.A. de C.V.; Hewlett-Packard Espanola, S.A. (Spain); Hewlett-Packard Europe B.V. (the Netherlands); Hewlett-Packard France; Hewlett-Packard GmbH (Germany); Hewlett-Packard Holding GmbH (Germany); Hewlett-Packard (India) Software Operation Pte. Ltd.; Hewlett-Packard Italiana S.p.A. (Italy); Hewlett-Packard Japan, Ltd.; Hewlett-Packard Korea Ltd.; Hewlett-Packard Ltd. (U.K.); Hewlett-Packard (Malaysia) Sdn. Bhd.; Hewlett-Packard Malaysia Technology Sdn. Bhd.; Hewlett-Packard (Manufacturing) Ltd. (Ireland); Hewlett-Packard Medical Products (Qingdao) Ltd. (China); Hewlett-Packard Microwave Products (M) Sdn. Bhd. (Malaysia); Hewlett-Packard Penang Sdn. Bhd. (Malaysia); Hewlett-Packard S.A. (Switzerland); Hewlett-Packard Shanghai Analytical Products Co., Ltd. (China); Hewlett-Packard Singapore Pte. Ltd.; Hewlett-Packard Singapore Vision Operation Pte. Ltd.; BT&D Technologies Ltd. (U.K.); CoCreate Software GmbH (Germany); Shanghai Hewlett-Packard Company (China); Technologies et Participations S.A. (France).

Principal Operating Units

Chemical Analysis Group; Components Group; Consumer Products Group; Enterprise Computing Solutions Organization; HP Labs; Information Storage Group; LaserJet Solutions Group; Medical Products Group; Personal Systems Group; Test and Measurement Organization.

Further Reading

Arnst, Catherine, Now, HP Stands for Hot Products, Business Week, June 14, 1993, p. 36.

Buell, Barbara, Hewlett-Packard Rethinks Itself, Business Week, April 1, 1991.

Burrows, Peter, Lew Platts Fix-It Plan for Hewlett-Packard, Business Week, July 13, 1998, pp. 128-31.

_____, The Printer King Invades Home PCs, Business Week, August 21, 1995, pp. 74-75.

Clark, Don, and George Anders, After Split, Outsider May Be Hired As Next CEO, Breaking Tradition, Wall Street Journal, March 3, 1999, pp. A3+.

Goldgaber, Arthur, The Teflon Tech Company: How Long Will Wall Street Give Hewlett-Packard the Benefit of the Doubt?, Financial World, July/August 1997, pp. 90-93.

Hamilton, David P., and Scott Thurm, H-P to Spin Off Its Measurement Operations: Sharper Focus on Computing Will Emerge, Wall Street Journal, March 3, 1999, pp. A3+.

Hof, Robert, Hewlett-Packard Digs Deep for a Digital Future, Business Week, October 18, 1993, pp. 72-75.

_____, Suddenly Hewlett-Packard Is Doing Everything Right, Business Week, March 23, 1992.

Hof, Robert, and Peter Burrows, Hewlett-Packard Heads for the Home, Business Week, May 8, 1995, p. 102.

HP Fact Sheet, Palo Alto, Calif.: Hewlett-Packard Company, 1998.

Hutheesing, Nikhil, HPs Giant ATM, Forbes, February 9,1998, pp. 96+.

Klein, Alec, As Cheap Printers Score, H-P Plays Catch-Up, Wall Street Journal, April 21, 1999, pp. Bl+.

Linden, Dana Wechsler, and Bruce Upbin, Top Corporate Performance of 1995: Boy Scouts on a Rampage, Forbes, January 1, 1996, pp. 66+.

Nee, Eric, Defending the Desktop, Forbes, December 28, 1998, p. 53.

_____, Lew Platt: Why I Dismembered HP, Fortune, March 29, 1999, p. 167.

_____, What Have You Invented for Me Lately?, Forbes, July 28, 1997, pp. 76+.

Packard, David, The HP Way: How Bill Hewlett and I Built Our Company, edited by David Kirby with Karen Lewis, New York: HarperBusiness, 1995, 212 p.

Pitta, Julie, It Had to Be Done and We Did It, Forbes, April 26, 1993, pp. 148-52.

Stross, Randall E., Whats a High-Class Company Like Hewlett-Packard Doing in a Lowbrow Business Like PCs?, Fortune, September 29, 1997, pp. 129+.

Wiegner, Kathleen K., Good-Bye to the HP Way?, Forbes, November 26, 1990.

Zell, Deone, Changing by Design: Organizational Innovation at Hewlett-Packard, Ithaca, N.Y.: ILR Press, 1997, 180 p.

John Simley

updated by David E. Salamie

Cite this article
Pick a style below, and copy the text for your bibliography.

  • MLA
  • Chicago
  • APA

"Hewlett-Packard Company." International Directory of Company Histories. 1999. Encyclopedia.com. 29 Jul. 2016 <http://www.encyclopedia.com>.

"Hewlett-Packard Company." International Directory of Company Histories. 1999. Encyclopedia.com. (July 29, 2016). http://www.encyclopedia.com/doc/1G2-2843200060.html

"Hewlett-Packard Company." International Directory of Company Histories. 1999. Retrieved July 29, 2016 from Encyclopedia.com: http://www.encyclopedia.com/doc/1G2-2843200060.html

Hewlett-Packard Company

Hewlett-Packard Company

3000 Hanover Street
Palo Alto, California 94304
U.S.A.
(415) 857-1501
Fax: (415) 857-5518

Public Company
Incorporated:
1947
Employees: 90,000
Sales: $14.5 billion
Stock Exchanges: New York London Paris Tokyo Pacific Zürich Geneva Basel Lausanne Frankfurt Stuttgart

Hewlett-Packard Company (HP) produces electronic products and systems for computation and measurement. Selling nearly all of its products to businesses, research institutes, and educational and health-care institutions, HP is one of the largest exporters in the United States. Its products measure power, radiation, and radio frequencies; count trace particles in air and water; and analyze breakdowns in computers and other electrical systems.

William Hewlett and David Packard, graduates of Stanford Universitys electrical engineering program, were encouraged by Professor Frederick Terman to start their own business in California. The two men worked in the garage behind Packards rented house in Palo Alto, California. Starting with only $538, the men began work on a resistance-capacity audio oscillator, a machine used for testing sound equipment. After assembling several modelsbaking paint for the instrument panel in Packards oventhey won their first big order, for eight oscillators, from Walt Disney Studios, which used them to develop and test a new sound system for the animated film Fantasia.

On January 1, 1939, Hewlett and Packard formalized their venture as a partnership, tossing a coin to decide the order of their names. Hewlett won. In 1940, with a product line of eight items, the two men moved their company and its three employees to a building in downtown Palo Alto.

During World War II, Terman, who was then in charge of anti-radar projects at Harvard, contracted his former students to manufacture microwave signal generators for his research. When the war ended, HP took full advantage of the growth in the electronics sector, particularly in the defense and industrial areas. The founders also decided at that time what their respective roles would be in the company: Hewlett would lead technological development, and Packard would be in charge of management. Hewlett-Packard was incorporated in 1947. By 1950 the company had 70 products, 143 employees, and revenues of $2 million.

HP introduced a revolutionary high-speed frequency counter, the HP524A, in 1951. This device, which reduced the time required to measure radio frequencies from ten minutes to about 2 seconds, was used by radio stations to maintain accurate broadcast frequencies, particularly on the newly established FM band.

The company maintained stable and impressive growth through the end of the decade. In November 1957, Hewlett-Packard offered shares to the public for the first time. It also moved into a larger complex in the Stanford Research Park.

In 1958, with revenues of $30 million, HP made its first corporate acquisition: the F. L. Moseley Company of Pasadena, California, a manufacturer of graphic recorders. The companys expansion continued in 1959 with the establishment of a marketing office in Geneva, and a manufacturing facility in Boeblingen, West Germany. After adding another factory in Loveland, Colorado, in 1960, Hewlett-Packard purchased the Sanborn Company, a medical instruments manufacturer based in Waltham, Massachusetts, in 1961.

The company gained wider public recognition when it was listed on the Pacific and New York stock exchanges in 1961 and in the Fortune 500 a year later. In 1964 Hewlett-Packard developed a cesium-beam flying clock, accurate to within one-millionth of a second. Company engineers embarked on a 35-day, 35,000-mile world tour to coordinate standard times.

In 1963 Hewlett-Packard expanded its presence in Japan through a joint venture with the Yokogawa Electric Works, and in 1965 it acquired the F & M Scientific Corporation, an analytical-instruments manufacturer, based in Avondale, Pennsylvania. In 1966 the company opened its central research laboratory, one of the worlds leading electronic research centers.

Though primarily a manufacturer of instruments for analysis and measurement, Hewlett-Packard developed a computer in 1966. The HP-2116A was developed specifically for HPs own production control; the company had no plans to enter the computer market. Two years later, however, HP introduced the HP-9100A, the first desktop calculator capable of performing scientific functions. In 1969 David Packard was appointed deputy secretary of defense in President Richard Nixons administration. Packard returned to his company as a director in 1972.

During this time, HP developed a handheld scientific calculator called the HP-35, known as the electronic slide rule. Designed partially by Bill Hewlett, it was introduced in 1972. When Texas Instruments entered the market in 1973, Hewlett-Packards device, which retailed at $395, was forced into the high end of the market.

Hewlett-Packard made its first decisive move into business computing, a field dominated by IBM and Digital Equipment Corporation, with the HP3000. This signalled a major change in company strategy. In the spring of 1974 Hewlett and Packard decided, despite record earnings, that the company was growing too fast. Refocusing on product leadership, the founders established a new, highly decentralized structure, letting each of the companys divisions conduct its own research and development.

In 1977 Bill Hewlett relinquished the presidency to John Young, a career HP man determined to make the company successful in the computer market. Although he was chosen by Hewlett and Packard, Young was virtually unknown to the companys customers and 37,000 employees. Nonetheless, he replaced Hewlett as chief executive officer a year later.

Hewlett-Packard introduced its first personal computer, the HP-85, in 1980. The markets initial reaction was cool, causing Young and other managers to investigate new, IBM-compatible designs, which were introduced in the mid-1980s. HPs broad move into information processing proved successful; the company quickly established itself as a leading computer vendor. Like other vendors, however, HP had designed each of its major computer lines for a specific use, making each model incompatible with the others. This resulted in redundant research and development and product support costs, and limited expansion capabilities for customers. In response to these problems, HP began a six-year program to develop architecture and software that would be compatible with existing programs. In the meantime, HP introduced a number of other products, including the HP9000 technical workstation, the HP150 touchscreen PC, the HP ThinkJet printer, and the HP LaserJet printer-a phenomenally successful product which soon came to dominate the printer market.

In 1986 the company introduced its new family of Spectrum computer systems, developed at a cost of $250 million. The project was based on a concept called RISCReduced-Instruction-Set Computing. RISC enables programs to run at double or triple conventional speed by eliminating many routine instructions. In spite of critics claims that the stripped-down instruction set makes the program less flexible and over-specialized, other computer companies soon began developing their own RISC chips.

While market projections for Spectrum were good, and the system itself was state of the art, HP initially failed to capitalize on its technology because of the companys strategy of focusing on markets rather than product lines. Sales efforts, however, were soon redoubled on every level. The company even began joint marketing with telecommunications and peripherals companies previously regarded as competitors.

John Youngs leadership of Hewlett-Packard was highly regarded. The Precision Architecture line gained wider acceptance after a problematic introduction, and came to be seen as a bold gamble. By 1988 Young had restored the companys momentum, with net earnings rising 27 percent during that year. Directors Hewlett and Packard were no longer involved in the day-to-day running of the business, and in 1987 Walter B. Hewlett and David Woodley Packard, the sons of the founders, were elected to the board.

In April 1989 Hewlett-Packard paid $500 million for Apollo Computer, a pioneer in the design, manufacture, and sale of engineering workstations. Integrating the two companies and eliminating unnecessary engineers and salespeople proved more time-consuming than anticipated, and as sales dropped, Hewlett-Packard slipped back to second position in late 1989. The company faced a further setback when Motorola Inc. delayed introduction of the advanced microprocessor chip it had promised HP for a new line of workstations.

Following a trend that developed in the information processing industry in the late 1980s and early 1990s, HP forged alliances with a number of companies that had previously been competitors. These included Hitachi, a microchip company; Canon, which provided the engines for HPs best-selling laser printer line; and 3Com, with which HP had a marketing and research agreement. Purchases during this period included Eon Systems, a manufacturer of equipment that monitors computer networks; and Hilco Technologies, a maker of factory software in which HP obtained a 25 percent stake.

In spite of the new focus on workstation technology and cooperative trade agreements, HP began 1990 with sagging profits and a lackluster consumer response to its new product line. Like many of its larger competitors, it had fallen victim to an unwieldy bureaucracy that discouraged entrepreneurial decision-making on the part of group managers. In 1990 earnings fell 11 percent to $739 million, down from $829 million in 1989. David Packard, the retired co-founder of the company, returned to his office to take a more active role in running the business.

John Young, president and chief executive officer, responded to the crisis by undertaking a thorough restructuring of Hewlett-Packard. He eliminated excess layers of management and divided computer products into two main groups: those sold directly to big customers (workstations and minicomputers) and those sold through discount dealers (printers and PCs). In a deliberate move away from the consensus style of management, he set up a virtually autonomous design group within the computer division, and put it in charge of developing a new workstation based on the RISC technology which Digital had helped pioneer. The results were impressive. After only a year of development, the Series 700 workstations were introduced to universally favorable reviews. The machines were considered several years ahead of their time, a crucial advantage in an industry where the constant development of new technologies makes products obsolete almost as soon as they go on the market.

HPs 95LX palmtop personal computer, also introduced in 1991, established an important new market in information devices. The 95LX, which retailed for $699, contained built-in Lotus 1-2-3 spreadsheet software, and immediately became a hot seller. Realizing its potential as the wave of the future, Hewlett-Packard quickly began to look for alternative markets for the palmtop, including navigation software and real estate applications.

The resurgence of the company was not achieved without a price. Reluctantly violating its no-layoff policy, HP cut 3,000 positions in 1990 and a further 2,000 positions in 1991. While executives agree that downsizing was a necessary evil, the staff reductions, together with a more aggressive advertising stance, have changed the companys image. When John Young announced his retirement in July 1992, he presided over a dynamic, if less paternalistic, company. His successor, Lewis E. Platt, an executive vice president and head of the companys computer systems organization, was slated to take over in November 1992.

Hewlett-Packard has gone a long way toward addressing the problems that caused revenues to decline and share prices to fall in 1990. The companys future success depends on its ability to keep costs down while continuing to promote an imaginative, competitively priced range of products. It must also continue its difficult transition from bureaucratic industry giant to responsive pace-setter without losing the support of its key executives.

Principal Subsidiaries

Hewlett-Packard Inter-America; Hewlett-Packard Delaware, Inc.; Hewlett-Packard Pipeline Company; Hewlett-Packard Puerto Rico; Hewlett-Packard Hellas; Hewlett-Packard Finance Company; Hewlett-Packard Atlantic, Inc.; Hewlett-Packard World Trade, Inc.; Fleet Systems, Inc.; Hewlett-Packard Delaware Holding, Inc.; Hewlett-Packard Delaware Investment, Inc.; Hewlett-Packard European Distribution Operations Netherlands, Inc.; EON Systems, Inc.; Apollo Computer, Inc.; Hewlett-Packard Laboratories Japan, Inc.; Hewlett-Packard Delaware Funding, Inc.; Hewlett-Packard (Canada) Ltd.; Grupo Hewlett-Packard S.A. de C.V. (Mexico); Hewlett-Packard S.A. (Switzerland); Hewlett-Packard Australia Ltd.; Hewlett-Packard Sales (Malaysia) Sdn. Bhd.; Yokogawa Hewlett-Packard Ltd. (Japan); Hewlett-Packard Hong Kong Limited; Hewlett-Packard GmbH (Germany); HewlettPackard Penang Sdn. Bhd. (Malaysia); Hewlett-Packard Asia Pacific Limited (Hong Kong); Hewlett-Packard France; Hewlett-Packard Ireland Ltd.; Hewlett-Packard Singapore (Sales) Pte. Ltd.; Hewlett-Packard Taiwan; China Hewlett-Packard Ltd.; Samsung Hewlett-Packard Ltd. (Korea); Hewlett-Packard FPG (Taiwan); Hewlett-Packard Italiana S.p.A. (Italy); The Tall Tree Insurance Company; Applied Optoelectronic Technology Corporation; Hewlett-Packard Delaware Capital, Inc.; Avantek, Inc.; Apollo World Trade, Inc.; Hewlett-Packard Export Trade Co.; Avantek Digital Radio, Inc.; Avantek International.

Further Reading

Highlights of Hewlett-Packard Company History, Hewlett-Packard Corporate Typescript, 1988; Hewlett-Packard: In Brief, Palo Alto, California, Hewlett-Packard Company, [n.d.]; Wiegner, Kathleen K., Good-bye to the HP Way?, Forbes, November 26, 1990; Buell, Barbara, Hewlett-Packard Rethinks Itself, Business Week, April 1, 1991; Hof, Robert D., Suddenly Hewlett-Packard Is Doing Everything Right, Business Week, March 23, 1992.

John Simley

update by Moya Verzhbinsky

Cite this article
Pick a style below, and copy the text for your bibliography.

  • MLA
  • Chicago
  • APA

"Hewlett-Packard Company." International Directory of Company Histories. 1992. Encyclopedia.com. 29 Jul. 2016 <http://www.encyclopedia.com>.

"Hewlett-Packard Company." International Directory of Company Histories. 1992. Encyclopedia.com. (July 29, 2016). http://www.encyclopedia.com/doc/1G2-2841000089.html

"Hewlett-Packard Company." International Directory of Company Histories. 1992. Retrieved July 29, 2016 from Encyclopedia.com: http://www.encyclopedia.com/doc/1G2-2841000089.html

Hewlett-Packard Company

Hewlett-Packard
Company

3000 Hanover Street
Palo Alto, CA 94304-1185

(650) 857-1501
www.hp.com

Some of America's greatest cultural heroes are its basement inventors and self-made business owners. These people prove the claim that a good idea and hard work can lead to success. David Packard (1912-1996) and William "Bill" Hewlett (1913-2001) made their first product in a small garage. From there, they went on to build the world's second-largest computer manufacturing company.

For decades, Hewlett-Packard (HP) was also known for its loose management style, called "the HP Way." Packard and Hewlett never put themselves above their employees and gave them the freedom to try new ideas. In return, HP workers responded with commitment and loyalty. Those bonds, however, were tested in 2001, after Hewlett-Packard announced its merger with rival computer maker Compaq.

Building a Business

William Hewlett and David Packard met in 1930 as freshmen at Stanford University, in Palo Alto, California. They shared an interest in the outdoors and electrical engineering. By their senior year, they were planning to form a radio company, an idea encouraged by Fred Terman, one of their professors. The business venture, however, was delayed for several years, as Hewlett earned a master's degree and Packard worked for General Electric, Inc. (GE; see entry) in New York. Finally, in the fall of 1938, Packard returned to California for graduate studies at Stanford, and he and Hewlett went to work.

Their first workshop was a one-car garage behind the two-family house they shared in Palo Alto. Their assets included a used drill press and a little more than $500. They made several electronic products, including an automatic toilet-bowl flusher for public restrooms. Writing in American Heritage, historian Frederick E. Allen quoted Hewlett as saying, "In the beginning, we did anything to bring in a nickel."

By November, the partners had built an audio oscillator, a device that creates high-frequency sounds. Their oscillator was cheaper and better than others on the market. They called their product the Model 200A, because, as Packard explains in his 1995 book, The HP Way, "We thought the name would make us look like we'd been around for a while." The partner's first major order came from the Walt Disney Company (see entry), which bought eight of the oscillators for $71.50 apiece. Since they were truly in business, Hewlett and Packard flipped a coin to see whose last name would go first in their new company's name.

Hewlett-Packard at a Glance

  • Employees: 150,000
  • CEO: Carleton Fiorina
  • Subsidiaries: BT&D Technologies Ltd.; CoCreate Software GmbH; HP Computadores; Heartstream, Inc.; Microsensor Technology, Inc.; Technologies et Participations S.A.
  • Major Competitors: International Business Machines (IBM); Dell Computer Corporation; Sun Microsystems, Inc.; Hitachi, Ltd.; Apple Computer, Inc.; Gateway, Inc.; Ingram Micro, Inc.
  • Notable Products: LaserJet printer; Deskjet printer; Officejet printer/scanner/copier; Vectra desktop PC; Pavilion desktop PC; Pavilion portable PC; Omnibook portable PC; Jornada personal digital assistant (PDA)

Growth during War and Peace

After the United States entered World War II (1939-45) in 1941, HP's business grew. Hewlett served in the army, so Packard ran the company, which began building a variety of electronic measuring and testing equipment for the U.S. government. By the end of the war, HP's annual sales reached $1 million, and the company had a new manufacturing plant and more than two hundred workers. HP introduced profit-sharing and a health insurance planbenefits largely unheard of at the time. In profit-sharing each worker is given a bonus based on a company's sales.

A post-war downturn forced HP to fire some plant workers, but it hired more engineers, and in 1947 it formed a legal corporation. Within several years, the company was back up to two hundred employees and making a wide range of testing devices. By the end of the 1950s, HP had more than 350 products and was expanding into Europe.

Timeline

1939:
David Packard and William Hewlett form Hewlett-Packard (HP) to sell the audio oscillator they invented.
1957:
HP sells stock and drafts the company goals that form the heart of "The HP Way." 1966: HP Laboratories opens.
1968:
An electronic desktop calculator is introduced.
1972:
The first HP pocket calculator appears.
1984:
HP introduces two new computer printers, the LaserJet and the DeskJet.
1991:
HP sells a palmtop personal computer that weighs less than one pound.
1999:
HP forms Agilent to develop and sell its testing and measuring.
2002:
The purchase of Compaq Computer Corporation makes HP the second-largest computer manufacturer in the world.

The "HP Way" was also firmly in place. Hewlett and Packard believed in "management by walking around"they spent much of their time talking to the engineers and other employees instead of tying themselves to a desk. At a 1957 management meeting, the company came up with six goals, later expanded to seven. As Packard wrote in The HP Way, the goals included giving employees "the opportunity to share in the company's success" and "striv[ing] for continual improvement in the quality, usefulness, and value of the products and services we offer customers."

That same year, 1957, Hewlett-Packard sold its first shares to the public. This means that shares, or small portions, of the company were available for sale on the New York Stock Exchange. The company also opened the first of six new buildings near Stanford University. In 1958, HP recorded sales of $30 million and had more than seventeen hundred workers.

Calculating New Profits

During the 1960s, Hewlett-Packard grew by purchasing several smaller electronics firms and expanding beyond measurement and testing devices. HP introduced its first computer, the Model 2116, in 1966. It also did important work on light-emitting diodes (LED's), the small electronic lights now common on computers and other products. The company's most significant new item, however, was the world's first programmable scientific desktop calculator. Prior to this, calculators were noisy, mechanical machines that used gears. The HP Model 9100 was electronic, more like a computer than a calculator.

After the success of the 9100, Hewlett challenged his employees to build a calculator small enough to fit into a shirt pocket. The HP staff responded with the HP 35, which was an immediate hit with scientists and engineers. HP was the pioneer in powerful, handheld calculators, and it remained strong in the testing and measurement market. By 1980, annual sales were $3 billion, and the company had fifty-seven thousand employees.

In 1989, the garage where David Packard and William Hewlett began their business was named a California State Historical Landmark. The site was honored as the birthplace of "Silicon Valley," the state's center for high-tech manufacturing.

Despite its size, HP kept a loose management structure. Each division in the company did its own research and development and manufactured its own products. As a division grew, it was split into smaller divisions. HP's increased movement into computers, however, presented the company with new structural and marketing challenges.

Printer Powerhouse

Although Hewlett-Packard had been making computers since the mid1960s, it was not a major presence in the industry. HP began to address that in 1980, when it introduced its first personal computer (PC). It also produced larger, more powerful computers, some costing up to $25,000. The various HP models, however, were not compatible with each other. In addition, the company faced tough competition from International Business Machines (IBM), which had started selling personal computers in 1981. By the end of 1983, HP had less than five percent of the PC market. Still, the company knew its potential growth was tied to these smaller computers.

Although highly respected in technical circles, HP and its products were not well known by the average U.S. consumer. The company began a new advertising campaign to boost its image. HP also placed its different PC operations in one new group. Finally, in 1984, it introduced several new products. One was a portable computer that could work with IBM's popular PCs. Older HP models could not run IBM software. More significant were two new printers designed for any computer: the ThinkJet and the LaserJet.

The ThinkJet, an ink-jet printer, offered better print quality than other inexpensive printers on the market. The LaserJet came out of a partnership with Canon, a Japanese manufacturer of cameras and copiers. Priced at almost $3,500, the LaserJet was a high-quality business printer. In a 1984 interview with Forbes, Cyril Yansouni, the head of HP's new PC group, explained the printer's importance to the company: "If the LaserJet gets us into the executive office, they'll remember us the next time we come around with computers."

In 1966, Hewlett-Packard opened HP Labs, a new research facility. Today the company has seven research sites around the world, working on such products as computer storage systems, Internet technologies, and printers.

Over time, HP introduced new models of both printers, and prices fell while quality remained high. HP set the standard for computer printers and dominated the market. The sales of replacement ink and toner cartridges also helped boost profits. Over time, the company improved its PCs and slowly took over a larger part of that market.

Years of Change in the
Computer Industry

By 1990, Hewlett-Packard's annual sales were more than $13 billion, but its profits were falling slightly. The company purchased Apollo Computer in 1989, and mixing its products and staff with HP's proved difficult. Thousands of jobs went unfilled after workers retired or left the company. To counter the slowing growth, the company began selling a new "palmtop' computer, the size of a pocket calculator with as much processing power as a PC. In 1992, it introduced a new color ink-jet printer, reinforcing its dominance in the printer market.

High-tech industries saw explosive growth during the 1990s, and HP benefited from this boom. Sales grew as much as $7 billion in one year. The company launched a new line of personal computers and continued to sell more sophisticated machines to businesses and researchers. By 1997, HP was the world's second-largest computer manufacturer with sales reaching $35.4 billion out of total company sales of $42.9 billion.

Despite its success with computers, HP faced tough competition and profits fell in 1998. The next year, it decided to concentrate on computers and related products. HP formed a new company, Agilent, to build and sell its testing and measuring devices. HP also made news in 1999 when it hired Carleton "Carly" Fiorina as chief executive officer (CEO). She was HP's first leader to come from outside the company.

Faced with slumping sales, Fiorina planned to increase HP's development of new products and combine its dozens of divisions into just three. A relationship with microchip maker Intel led to the Itanium, a new kind of chip for computers.

In 1976, Hewlett-Packard lost the opportunity to become a leader in the PC market when it decided not to develop a new personal computer built by one of its employees, Steve Wozniak. Wozniak left HP and co-founded Apple Computer, Inc. (see entry), the company credited with selling the first successful personal computer.

Fiorina's boldest move came in September 2001, when HP launched a takeover of rival Compaq Computer Corporation. Hewlett-Packard's decision to buy Compaq led to a long and public battle between Walter B. Hewlett (son of William Hewlett) and Fiorina. At first, Hewlett joined other board members in supporting the purchase, but by November 2001, he had announced his intention to vote against it. He controlled about 5 percent of HP's stock, owned by the Hewlett family and a foundation set up by his father, who had died earlier in the year.

As Hewlett spoke out against the deal, other shareholders and some employees questioned the move. Compaq's stock value fell during 2001, and some opponents claimed HP was paying too much for its rival. By December, Hewlett said that shareholders controlling almost 20 percent of HP's stock were against the deal, and he asked the company's board to withdraw its offer. The battle went public as Hewlett launched a Web site, www.votenohpcompaq.com, and took out newspaper ads opposing the deal.

HP fired back with its own Web site and newspaper ads, sometimes accusing Hewlett of lying. The company argued that its founders would have supported the purchase. By the end of February 2002, HP said it had enough votes to secure the deal. The deal was finally approved, and by May Fiorina was announcing leadership changes and new product strategy. With the merger, the new HP almost matches industry leader IBM in size and revenue. The new HP claims about 20 percent of the worldwide PC market and remains committed to introducing new products.

Cite this article
Pick a style below, and copy the text for your bibliography.

  • MLA
  • Chicago
  • APA

"Hewlett-Packard Company." Leading American Businesses. 2003. Encyclopedia.com. 29 Jul. 2016 <http://www.encyclopedia.com>.

"Hewlett-Packard Company." Leading American Businesses. 2003. Encyclopedia.com. (July 29, 2016). http://www.encyclopedia.com/doc/1G2-3498000060.html

"Hewlett-Packard Company." Leading American Businesses. 2003. Retrieved July 29, 2016 from Encyclopedia.com: http://www.encyclopedia.com/doc/1G2-3498000060.html

Hewlett-Packard Company

Hewlett-Packard Company

3000 Hanover Street
Palo Alto, California 94304
U.S.A.
(415) 857-1501
Fax: (415) 857-5518

Public Company
Incorporated: 1947
Employees: 95,000
Sales: $11.90 billion
Stock Exchanges: New York London Paris Tokyo Frankfurt Stuttgart Zurich Basel Geneva Lausanne Pacific

Hewlett-Packard Company produces electronic products and systems for computation and measurement. Hewlett-Packard (HP) sells nearly all of its products to businesses, research institutes, and educational and health-care institutions, and is one of the United Statess 15 largest exporters. Its products can measure power, radiation, and radio frequencies; can count trace particles in air and water; and can analyze breakdowns in computers and other electrical systems.

Hewlett-Packard was founded in 1938 by William Hewlett and David Packard, both recent graduates of Stanford Universitys electrical engineering program. Encouraged by Professor Frederick Terman, who urged graduates to start their own businesses in California, the two men rented a cottage behind Packards house in Palo Alto, California, and, with $538, began part-time work on a resistance-capacity audio oscillator, for testing sound equipment, that Hewlett had developed for his masters thesis. After assembling several modelsbaking paint onto the instrument panel in Packards kitchen oventhey won their first big order, for eight oscillators, from Walt Disney Studios, which used them to develop and test a new sound system for Fantasia.

On January 1, 1939, Hewlett and Packard formalized their venture as a partnership, tossing a coin to decide the order of their namesHewlett won. In 1940, with a product line of eight items, the two men moved their company and its three employees to a building in downtown Palo Alto.

During World War II Terman, who was then in charge of antiradar projects at Harvard, contracted his former students to manufacture microwave signal generators for his research. When the war ended, HP took full advantage of the growth in the electronics sector, particularly for defense and industrial projects. Also at this time the founders decided upon their roles in the company: Hewlett led technological development, and Packard took charge of managing the business. Hewlett-Packard was incorporated in 1947. By 1950 the company had 70 products, 143 employees, and revenues of $2 million.

HP introduced a revolutionary high-speed frequency counter, the HP-524A, in 1951. This device, which reduced the time required to measure radio frequencies from ten minutes to about two seconds, was used by radio stations to maintain accurate broadcast frequencies, particularly on the then-new FM band.

The company maintained stable and impressive growth through the end of the decade. In November 1957 Hewlett-Packard offered shares to the public for the first time. It also moved into a larger complex in the Stanford Research Park.

In 1958, with revenues of $51 million, HP made its first corporate acquisition: the F.L. Moseley Company of Pasadena, California, a manufacturer of graphic recorders. The companys expansion continued, internationally, in 1959 with the establishment of a marketing office in Geneva, and a manufacturing facility in Boeblingen, West Germany. After adding another factory in Loveland, Colorado, in 1960, Hewlett-Packard purchased the Sanborn Company, a medical-instruments manufacturer based in Waltham, Massachusetts.

The company gained wider public recognition when it was listed on the Pacific and New York stock exchanges in 1961, and then made the Fortune 500 a year later. In 1964 Hewlett-Packard developed a cesium-beam flying clock, accurate to within one-millionth of a second. To promote the device, called HP-5060A, company engineers embarked on a 35-day, 35,000-mile world tour to coordinate standard times.

In 1963 Hewlett-Packard expanded its presence in Japan through the creation of a joint venture with Yokogawa Electric Works, and in 1965 it acquired the F & M Scientific Corporation, another analytical-instruments manufacturer, based in Avondale, Pennsylvania. Also that year, the company opened its central research laboratory, one of the worlds leading electronic research centers.

Though primarily a manufacturer of instruments for analysis and measurement, Hewlett-Packard developed a computer in 1966. The HP-2116A was developed specifically for HPs own production control; the company had no plans to enter the computer market. Two years later, however, HP introduced the HP-9100A, the first desktop calculator capable of performing scientific functions. In 1969 David Packard was appointed deputy secretary of defense in President Richard Nixons administration. In 1971 Packard left the government and returned to his company as a director.

HP, meanwhile, developed a hand-held scientific calculator called the HP-35. The device, known as the electronic slide rule, was designed partially by Bill Hewlett. It was introduced in 1972 and soon made up 13% of the companys sales. When Texas Instruments entered the market in 1973, Hewlett-Packards device, which retailed at $395, was forced into the high end of the market.

Hewlett-Packard made its first decisive move into business computing with the HP-3000. This signaled a major change in company strategy: diversification into computers, a field dominated by IBM and Digital. In the spring of 1974 Hewlett and Packard decided that the company was growing too fast; the company was falling behind, despite record earnings. The founders refocused on product leadership. They established a new, highly decentralized research-and-development structure, letting each of the companys 23 divisions conduct its own research and development.

Bill Hewlett relinquished the presidency in 1977 to John Young, a career HP man determined to make the company successful in the computer market. Although he was chosen by Hewlett and Packard, Young was virtually unknown to the companys customers and 37,000 employees. Nonetheless, a year later he replaced Hewlett as CEO, also.

Hewlett-Packard introduced its first personal computer, the HP-85, in 1980. The markets initial reaction was cool, leading Young and other managers to investigate new, IBM-compatible designs, which were introduced in the mid-1980s. HPs broad move into computers proved to be a good one, as the company quickly established itself as a leading computer vendor. Like other vendors, however, HP had designed each of its major computer lines for a specific use, making each model incompatible with the others. This resulted in redundant research and development and product-support costs and limited expansion possibilities for customers. In response to these problems, HP began a six-year program to develop architecture and software that would be compatible with existing programs, for all its subsequent computers. In the meantime, HP introduced a number of other products, including the HP-9000 technical workstation, the HP-150 touchscreen PC, the ThinkJet printer, and the LaserJet printerthe single most successful product in Hewlett-Packards history.

In 1986 the company introduced its new family of Spectrum computer systems, developed at a cost of $500 million. The project was based on the newly developed universal design, Precision Architecture. This architecture used a new concept called RISCReduced Instruction Set Computing. RISC enables computers to run through programs at double or triple conventional speed by eliminating many routine instructions. Critics claim, however, that the stripped-down set of instructions makes the program less flexible and over-specialized.

Despite these criticisms, market projections were good, and the system itself was state of the art. HP initially failed to capitalize on its technology. The company had adopted a new sales strategy as early as 1984, focusing on markets rather than product lines. Sales efforts were redoubled on every level. The company even began joint marketing with telecommunications and peripherals companies previously regarded as competitors.

John Youngs leadership of Hewlett-Packard is highly regarded. The Precision Architecture line gained much wider acceptance after its problematic introduction, and came to be viewed as a bold gamble. By 1988, Young had restored the companys momentum, with profits rising 27% during that year. Hewlett and Packard, as directors, are no longer involved in the companys day-to-day business. In 1987, their sons, Walter B. Hewlett and David Woodley Packard, were elected to the board.

In April 1989 Hewlett-Packard paid $500 million for the ailing Apollo Computer, a pioneer in the design, manufacture, and sale of engineering workstations. The purchase doubled HPs share of the networked-workstation market and boosted it from the fourth-largest to the largest producer in that fast-growing segment.

In buying Apollo, Hewlett-Packard did more than increase its workstation market share to 30%. It also won original-equipment manufacturer business with companies like Mentor Graphics Corporation, the leading designer of computer-aided engineering software. Mentor and companies like it buy workstations, equip them with their own software, and resell the machines for special uses, such as computer-aided engineering.

Apollo was not HPs only new partner during the late 1980s. In 1988 and 1989 the company entered trade agreements with several companies. Hewlett-Packard cooperates with Hitachi, for microchips; Canon, for printers; Yokogawa, for logic systems; Northern Telecom, for microprocessor development systems; Sony, for digital audio tapes; Arthur Anderson, for computer-integrated-manufacturing management consulting; Samsung, for workstation development; and 3Com, for marketing and research. It also bought Eon Systems, a manufacturer of equipment that monitors computer networks and purchased a 25% stake in Hilco Technologies, a maker of factory software and a 10% share of Octel Communications, a voice-mail system supplier which also has a European distribution deal with Hewlett-Packard.

The company expects that its collaborative efforts are the key to its future. It is well-positioned for the post-1992 unified European economy, and has an enviable balance of foreign and domestic sales.

Principal Subsidiaries

Hewlett-Packard Inter-America; Hewlett-Packard Delaware, Inc.; Hewlett-Packard Pipeline Company; Hewlett-Packard Puerto Rico; Hewlett-Packard Hellas; Hewlett-Packard Finance Company; Hewlett-Packard Atlantic, Inc.; Hewlett-Packard Delaware Trading, Inc.; Fleet Systems Inc.; Hewlett-Packard Delaware Holding, Inc.; Hewlett-Packard Delaware Investment, Inc.; Hewlett-Packard European Distribution Operations Netherlands, Inc.; The Tall Tree Insurance Company; EON Systems, Inc.; Apollo Computer, Inc.; Hewlett-Packard Laboratories Japan, Inc.; Hewlett-Packard Delaware Funding, Inc.; Hewlett-Packard (Canada) Ltd.; Grupo Hewlett-Packard S.A. de C.V. (Mexico); Hewlett-Packard S.A. (Switzerland); Hewlett-Packard Australia Ltd.; Hewlett-Packard Sales (Malaysia) Sdn. Bhd.; Yokogawa Hewlett-Packard Ltd. (Japan); Hewlett-Packard Hong Kong Ltd.; Hewlett-Packard GmbH (Germany); Hewlett-Packard Penang Sdn. Bhd. (Malaysia); Hewlett-Packard Asia Limited (Hong Kong); Hewlett-Packard France; Hewlett-Packard Ireland Ltd.; Hewlett-Packard Singapore (Sales) Pte. Ltd.; Hewlett-Packard Taiwan; China Hewlett-Packard, Ltd.; Samsung Hewlett-Packard Ltd. (Korea); Hewlett-Packard FPG (Taiwan); Hewlett-Packard Italiana S.p.A. (Italy).

Further Reading

Highlights of Hewlett-Packard Company History, Hewlett-Packard corporate typescript, 1988; Hewlett-Packard: In Brief, Palo Alto, California, Hewlett-Packard Company, [n.d.].

John Simley

Cite this article
Pick a style below, and copy the text for your bibliography.

  • MLA
  • Chicago
  • APA

"Hewlett-Packard Company." International Directory of Company Histories. 1991. Encyclopedia.com. 29 Jul. 2016 <http://www.encyclopedia.com>.

"Hewlett-Packard Company." International Directory of Company Histories. 1991. Encyclopedia.com. (July 29, 2016). http://www.encyclopedia.com/doc/1G2-2840700061.html

"Hewlett-Packard Company." International Directory of Company Histories. 1991. Retrieved July 29, 2016 from Encyclopedia.com: http://www.encyclopedia.com/doc/1G2-2840700061.html

Hewlett-Packard

Hewlett-Packard A highly successful manufacturer of electronic equipment, founded in 1938 by Bill Hewlett and Dave Packard, two electrical engineers recently graduated from Stanford. By the 1980s, it was well known for its electronic instruments, calculators, data-gathering equipment, medical equipment, and high-performance workstations. It is noted as the first manufacturer of a hand-held calculator. It was a major developer of software for use in its own products and has exploited this fact by marketing development tools for its own workstations. In 1999, the measurement, component, chemical analysis and medical systems part of the business were split off into a separate and independent company, Agilent Technologies. Hewlett-Packard retained its computing, printing, and imaging businesses and in 2002 it merged with Compaq.

Cite this article
Pick a style below, and copy the text for your bibliography.

  • MLA
  • Chicago
  • APA

JOHN DAINTITH. "Hewlett-Packard." A Dictionary of Computing. 2004. Encyclopedia.com. 29 Jul. 2016 <http://www.encyclopedia.com>.

JOHN DAINTITH. "Hewlett-Packard." A Dictionary of Computing. 2004. Encyclopedia.com. (July 29, 2016). http://www.encyclopedia.com/doc/1O11-HewlettPackard.html

JOHN DAINTITH. "Hewlett-Packard." A Dictionary of Computing. 2004. Retrieved July 29, 2016 from Encyclopedia.com: http://www.encyclopedia.com/doc/1O11-HewlettPackard.html

hp

hp symbol for horsepower

Cite this article
Pick a style below, and copy the text for your bibliography.

  • MLA
  • Chicago
  • APA

FRAN ALEXANDER , PETER BLAIR , JOHN DAINTITH , ALICE GRANDISON , VALERIE ILLINGWORTH , ELIZABETH MARTIN , ANNE STIBBS , JUDY PEARSALL , and SARA TULLOCH. "hp." The Oxford Dictionary of Abbreviations. 1998. Encyclopedia.com. 29 Jul. 2016 <http://www.encyclopedia.com>.

FRAN ALEXANDER , PETER BLAIR , JOHN DAINTITH , ALICE GRANDISON , VALERIE ILLINGWORTH , ELIZABETH MARTIN , ANNE STIBBS , JUDY PEARSALL , and SARA TULLOCH. "hp." The Oxford Dictionary of Abbreviations. 1998. Encyclopedia.com. (July 29, 2016). http://www.encyclopedia.com/doc/1O25-hp.html

FRAN ALEXANDER , PETER BLAIR , JOHN DAINTITH , ALICE GRANDISON , VALERIE ILLINGWORTH , ELIZABETH MARTIN , ANNE STIBBS , JUDY PEARSALL , and SARA TULLOCH. "hp." The Oxford Dictionary of Abbreviations. 1998. Retrieved July 29, 2016 from Encyclopedia.com: http://www.encyclopedia.com/doc/1O25-hp.html

Facts and information from other sites