Hewlett-Packard Company

Company Information

• Date Founded: 1939
• Industry: Information technology and computers
• Corporate Headquarters: Palo Alto, California
• Type: Public

Overview

Hewlett-Packard Company¸ also called Hewlett-Packard or HP, was an American information technology (IT) company. William Redington Hewlett and David Packard founded the company in 1939 in a small garage in Palo Alto, California. HP initially focused on several inventions and developed an audio oscillator, which measured sound. The company eventually entered the computer industry and worked on developing new technology in the field.

HP became very successful, and the company was known for developing hardware, software, computer-related business services, and technological devices. It was responsible for the first versions of many popular devices, such as the first handheld scientific calculator and the first wireless mouse. The company released its first computer in 1980, and it eventually became noted for its popular line of inkjet printers.

Throughout the years, HP acquired a number of other companies and continued to grow its brand. However, in 2015, executives decided to split HP into two different entities. Hewlett Packard Enterprise continued to focus on computer software, servers, and other services, while HP Inc. sold personal computers (PCs) and printers.

History

Hewlett and Packard met in the 1930s while studying engineering at Stanford University in California. After they graduated, Packard moved to New York to work for General Electric while Hewlett stayed in California. Packard eventually moved back to California, where he rented a place in Palo Alto with his wife. Hewlett lived on the property in a furnished shed. The two began to work on an idea for a technology company. A small garage on the property served as their headquarters.

Hewlett and Packard began working on several inventions. One was a medical device known as a diathermy machine, which produced heat, and another was a piece for astronomers to use to set telescopes. Other early items they developed included an automatic toilet-flushing device and a harmonica tuner.

At this time, Packard received a Stanford fellowship, while Hewlett worked as a research assistant at the university. Packard's wife worked as a secretary and helped support the venture. Their home served as the headquarters and workshop for the company. When Hewlett married and moved from the Packards' property, his shed served as the company's office. The duo's wives helped with the office work and record-keeping for the company.

Hewlett and Packard then developed a device called an audio oscillator, which measured sound frequencies. They called it the Model 200A audio oscillator and sold it for about $55. Similar devices cost around $500. They further developed the device and later released a modified version called the Model 200B. In 1938, Walt Disney Studios ordered several oscillators to be put in their theaters for the 1940 release of the film Fantasia.

Hewlett and Packard formally established Hewlett-Packard Company on January 1, 1939. By the following year, they had two employees, and they had moved to a new place in Palo Alto. The area was later known as Silicon Valley for the many technology companies that resided there. When World War II began later that year, the US government ordered electronic devices from HP. The company made nearly $35,000 for the year. By the end of the war, HP made more than $500,000 a year.

In 1947, the company became incorporated, with Packard serving as president and Hewlett as vice president. A year later, HP had more than 120 employees, and its revenue was more than $2.2 million. The company went public in 1957.

By the 1960s, HP was working on personal computing devices and computer software and hardware. In 1964, Packard was named chief executive officer (CEO) and chairperson, and Hewlett became president. Two years later, the company unveiled its first computer, the HP 2116A, making the company a major player in the early computer industry. Next came its first handheld scientific calculator, the HP-35, in 1972.

In 1973, HP introduced a time-off policy for its employees called flextime. It allowed employees to flex work hours and encouraged them to balance their work and personal lives. It was the first policy of its kind in the United States.

The following year, the company introduced the first programmable pocket calculator, the HP-65. In 1977, Hewlett stepped down as president but remained CEO; Packard remained chairperson.

The company continued to develop its product line. It introduced the HP-01, a combination digital watch and calculator, in 1977. A year later, Hewlett retired. The company unveiled its first PC in 1980. Two years later, it debuted the HP-75C, the first handheld computer, and created the first touch-screen PC in 1983. By the end of the 1980s, HP was developing inkjet printers. The HP LaserJet Printer became one of the most successful products for the multibillion-dollar company.

In 1993, Packard retired as chairperson. He died on March 26, 1996. Hewlett died on January 12, 2001. The following year, the company began a merger with the computer company Compaq. The deal was completed in 2002, but HP then began to see a downturn in business, which resulted in layoffs and a reorganization of the company's management.

HP eventually became the world's largest tech company in terms of revenue and the world's largest PC maker, beating out IBM and Dell, respectively, in 2006. During this time, the company continued to acquire other firms, including 3Com, Palm, and Autonomy. By 2011, HP was ahead of Apple Inc. in terms of revenue. Also, in 2011, the company introduced the first wireless mouse. By 2012, HP lost its top-revenue ranking to Apple, and Lenovo edged out HP to become the top PC maker in the world in 2013.

Big changes were announced in 2014 as the company prepared to split into two firms, Hewlett Packard Enterprise and HP Inc. In 2015, the company that began as HP ceased to exist. Hewlett Packard Enterprise continued to focus on computer software, servers, and other services, while HP Inc. focused on selling PCs and printers. In 2023, both companies continued to operate.

Impact

HP became a leader in the computer industry. The small company founded by two engineers in the 1930s grew into a giant corporation. It became noted for its computer technology, PCs, and line of printers among other big-name technology corporations, such as IBM, Dell, and Apple. It also became the first company to see a need for providing employees with a work-life balance by introducing flextime. While the company experienced some downturns, it was able to remain viable by restructuring into two firms.

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