Instead of just manufacturing computers, Compaq wanted to acquire new companies and find a more diverse set of revenue streams.Īs Eckhard Pfeiffer took over as CEO, Compaq turned its focus on the retail market with the Compaq Presario, the first sub-$1,000 computer in the personal computer market. The 1990s were a little more tumultuous for Compaq, as its founders would start breaking away from the company and would lead to the company moving in a different direction. Once upon a time, Compaq was a very successful PC company. Similar to the Portable, Deskpro also ran all IBM software, which was a major feather in Compaq’s cap.Ĭompaq continued to release more computers in the 1980s and would be one of the first companies to start running an operating system from a little-known company known as Microsoft. The Portable would go on and sell 53,000 units in its first year and generate $111 million in revenue for Compaq.Īs 1984 rolled around, Compaq released its first desktop, the Compaq Deskpro, which is a 16-bit computer running on an Intel processor and was much faster than IBM PCs at the time. Best known as one of the predecessors of today’s modern laptops, it was a breakthrough moment as it could run all of the same software as an IBM PC. The first product, the Compaq Portable, would be released in 1983 for $2,995. As a startup, Compaq pitched to many venture capitalists with their vision of a new computing company and raised $25 million to break into the industry. The year is 1982, and three men, Rod Canion, Jim Harris, and Bill Murto, all leave their jobs at Texas-based Texas Instruments.Īfter losing faith in their management, each man decided to invest $1,000 of their own money to form a computer company known as Gateway, which was quickly changed to Compaq. This was a watershed moment for the company. In the mid-1990s, as Compaq was already flying high, they would become one of the first computer manufacturers to market a personal computer for less than $1,000. Unlike IBM and its clones that were heavily focused on price, Compaq turned its focus on features like better graphics that would strongly appeal to a new personal computer user. When you bought a Compaq PC, you were sure you were getting a highly regarded machine that was sturdy and would last for years. ![]() Even with this success, Compaq really mattered because it was one of the first companies to really be a threat to IBM’s dominant hold of the computing market. While Compaq is not a name most remember today, this is a computing company that mattered a great deal back in the 1980s and 1990s.Ĭompaq was the youngest company ever to be listed on the Fortune 500 and, by 1987, only five years after its founding, reached over $1 billion in revenue. Quick Facts Date Foundedĭesktops, notebooks, servers, software, telecom equipment Read on to find out exactly what happened to this PC company. So why did Compaq fail so spectacularly? There isn’t one answer or one misstep, but a culmination of many decisions and a few mergers went wrong. ![]() Looking back on Compaq and its failures is a reminder of where the computing industry has been and where we are today. Today, Compaq is an industry name long forgotten, but when it was founded in 1982, it would soon become the biggest name in personal computing. If we had asked this question two decades ago, that list would look a little different, and Compaq may have very well been your first top response. When you think of the personal computer names that dominate the landscape today, you’re almost assuredly thinking of Microsoft, HP, Apple, and Dell. Compaq ultimately failed because of a risky acquisition (DEC) and price wars with large competitors like DELL and Intel.Compaq was founded in 1982 and, only five years later, was a fortune 500 company with 1 billion in revenue. ![]() Compaq was a computer manufacturer that produced high-quality personal computers at affordable prices.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |