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The Compaq brand remained in use by HP for lower-end systems until 2013 when it was discontinued. Struggling to keep up in the price wars against Dell, as well as with a risky acquisition of DEC, Compaq was acquired for US$25 billion by HP in 2002. It rose to become the largest supplier of PC systems during the 1990s before being overtaken by HP in 2001. Compaq produced some of the first IBM PC compatible computers, being the second company after Columbia Data Products to legally reverse engineer the IBM Personal Computer. Desktops, notebooks, servers, telecom equipment, softwareCompaq (a portmanteau of Compatibility And Quality, occasionally referred to as CQ prior to its final logo) was an American information technology company founded in 1982 that developed, sold, and supported computers and related products and services. Oh, they said that they understood my concern (standard reply content) and they would look for a solution (standard reply content).Results show Packard Bell in a comfortably average position for reliability, customer loyalty, and repair service satisfaction, with its 80286 models.
Compaq was founded in February 1982 by Rod Canion, Jim Harris, and Bill Murto, three senior managers from semiconductor manufacturer Texas Instruments. Prior to its takeover the company was headquartered in northwest unincorporated Harris County, Texas, that now continues as HP's largest United States facility. Ben Rosen provided the venture capital financing for the fledgling company and served as chairman of the board for 17 years from 1983 until September 28, 2000, when he retired and was succeeded by Michael Capellas, who served as the last chairman and CEO until its merger with HP. Pfeiffer served through the 1990s. Murto (SVP of sales) departed Compaq in 1987, while Canion (president and CEO) and Harris (SVP of engineering) left under a shakeup in 1991, which saw Eckhard Pfeiffer appointed president and CEO.
The first Compaq PC was sketched out on a placemat by Ted Papajohn while dining with the founders in a pie shop, (named House of Pies in Houston). The name was chosen from many suggested by Ogilvy & Mather, it being the name least rejected. The name "COMPAQ" was said to be derived from "Compatibility and Quality" but this explanation was an afterthought. Each invested $1,000 to form the company, which was founded with the temporary name Gateway Technology.
Due to its partnership with Intel, Compaq was able to maintain a technological lead in the market place as it was the first one to come out with computers containing the next generation of each Intel processor. In contrast to Dell Computer and Gateway 2000, Compaq hired veteran engineers with an average of 15 years experience, which lent credibility to Compaq's reputation of reliability among customers. Overall, the founders managed to raise $25 million from venture capitalists, as this gave stability to the new company as well as providing assurances to the dealers or middlemen.Unlike many startups, Compaq differentiated its offerings from the many other IBM clones by not focusing mainly on price, but instead concentrating on new features, such as portability and better graphics displays as well as performance—and all at prices comparable to those of IBM's PCs. Rosen and Sevin Rosen Funds, who helped the fledgling company secure $1.5 million to produce their initial computer.
Compaq went public in 1983 on the NYSE and raised $67 million. During its first year of sales (second year of operation), the company sold 53,000 PCs for sales of $111 million, the first start-up to hit the $100 million mark that fast. By giving dealers considerable leeway in pricing Compaq's offerings, either a significant markup for more profits or discount for more sales, dealers had a major incentive to advertise Compaq.
Cooley, another former IBM associate, who served for many years as SVP of GM North America Michael Swavely, who was the company's chief marketing officer in the early years, and eventually ran the North America organization, later passing along that responsibility to Cooley when Swavely retired. Other key executives responsible for the company's meteoric growth in the late 1980s and early 1990s were Ross A. Two key marketing executives in Compaq's early years, Jim D'Arezzo and Sparky Sparks, had come from IBM's PC Group. By 1991, Compaq held the fifth place spot in the PC market with $3 billion in sales that year. In 1987, Compaq hit the $1 billion revenue mark, taking the least amount of time to reach that milestone.
Instead of headquartering the company in a downtown Houston skyscraper, Canion chose a West Coast-style campus surrounded by forests, where every employee had similar offices and no-one (not even the CEO) had a reserved parking spot. These executives, along with other key contributors, including Kevin Ellington, Douglas Johns, Steven Flannigan, and Gary Stimac, helped the company compete against the IBM Corporation in all personal computer sales categories, after many predicted that none could compete with the behemoth.The soft-spoken Canion was popular with employees and the culture that he built helped Compaq to attract the best talent. "Mac" McLoughlin (another long time IBM executive) led the company's field sales organization after starting up the Western U.S.
Swavely, vice president for marketing, who was given increased responsibility and the title of vice president for sales and marketing. Cooley would report to Michael S. Cooley, director of corporate sales. Murto was succeeded by Ross A. Murto had helped to organize the company's marketing and authorized-dealer distribution strategy, and held the post of senior vice president of sales since June 1985. In 1987, company co-founder Bill Murto resigned to study at a religious education program at the University of St.
Compaq was able to market a legal IBM clone because IBM mostly used "off the shelf" parts for their PC. The Compaq Portable was the first in the range of the Compaq Portable series. It was a commercial success, selling 53,000 units in its first year and generating $111 million in sales revenue. It was the second IBM PC compatible, being capable of running all software that would run on an IBM PC. The Compaq Portable was one of the progenitors of today's laptop some called it a "suitcase computer" for its size and the look of its case. It was released in March 1983 at $2995.
It is perceived by a lot of people as a marketing gimmick. I don't believe and our dealer network doesn't believe that bundling is the best way to merchandise those products.You remove the freedom from the dealers to really merchandise when you bundle in software. Sparks said in early 1984: We've considered it, and every time we consider it we reject it. Vice President of Sales and Service H. Unlike other companies, Compaq did not bundle application software with its computers. The only part which had to be duplicated was the BIOS, which Compaq did legally by using clean room design at a cost of $1 million.
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They didn't think it would get done. Bill Gates of Microsoft later said The folks at IBM didn't trust the 386. It was Compaq's first non-portable computer and began the Deskpro line of computers.Compaq introduced the first PC based on Intel's new 80386 microprocessor, the Compaq Deskpro 386, in 1986. It was considerably faster than an IBM PC and was, like the original Compaq Portable, also capable of running IBM software.
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