Buy Refurbished: HP Compaq Desktop PC DC5100 Pentium 4 3.00 GHz 1 GB DDR2 40 GB HDD Windows XP Professional with fast shipping and top-rated customer.While computers had finally made the big jump from machines that took up the better portion of a room to something that could fit on a desk, they were still far from portable. The switch from Transmeta Crusoe processors to the Pentium M and the ability to add memory was. The TC1100 had either an Intel Celeron or an Intel Pentium M chip set and could be upgraded up to 2 gigabytes of memory. The HP Compaq TC1100 is a tablet PC sold by Hewlett-Packard that was the follow-up to the Compaq TC1000.
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A series of all-in one units, containing both the PC and the monitor. In the mid-1990s, Compaq began manufacturing PC monitors as part of the Presario brand. The Presario family of computers was launched for the consumer marketplace in September 1993. Presario is a discontinued series of desktop computers and notebooks from Compaq.
By 1987, the startup had reached over $1 billion in revenue. In 1986, the company broke another record by becoming the youngest company listed in the Fortune 500, right after the Compaq Portable II's release. Record sales continued with the portable PC selling $329 million and $504 million in 19.The momentum of those first few years made Compaq a leader in the PC industry.
The company's growth dipped to 4 percent versus an industry average of 7 percent.The board wanted to change things up, but Canion insisted on continuing to do what had made the company famous—selling high-end business machines to enterprise dealers at a wide profit margin. In part, the conflict arose because competitors such as Dell, AST Research, and Gateway had entered the market, offering less expensive alternatives to Compaq computers. Differences in vision between CEO Canion and the board of directors resulted in the resignation of both Canion and his co-founder and SVP of engineering, Jim Harris. By 1991, Compaq had reached over $3 billion in sales and was in fifth place in market share.However, 1991 turned out to be a tumultuous year for the company. Canion cultivated a relaxed company culture that attracted some of the industry's top talent. Despite his departure, the company continued to soar.Rod Canion's leadership was a large part of Compaq's success.
It also propelled Compaq from its third-place spot behind Apple in 1993 into the second-biggest PC manufacturer. This new strategy triggered a price war that put some other competitors, including Packard Bell and AST Research, out of business. It was one of the first PCs introduced to the consumer market for under $1,000, and it was a hit.To reach these new low prices, Compaq was the first of the big PC companies to start using chips from AMD and Cyrix, a practice that eventually became an industry standard. The first of these was the Compaq Presario. Up this point, Compaq had focused on marketing and producing systems like the DeskPro and SystemPro intended for the enterprise market.Pfeiffer's vision was to introduce affordable PCs to the average consumer. Harris and four other long time executives followed him five weeks later.COO Eckhard Pfeiffer became the new CEO and led the company in a new direction.
That was quickly followed by picking up Microcom later that year and NetWorth in 1998 to bolster its networking division.Before the end of 1998, the company would buy up the legendary Digital Equipment Corporation (DEC) for a record-shattering $9.6 billion. First, it snapped up Tandem Computers for $3 billion. Pfeiffer spent much effort and resources, building up a network engineering division.Starting in 1997, Compaq went on what seemed to be a buying spree. Compaq sold off its printer division to Xerox for a mere $50 million in 1994.Compaq Presario CDS 524 ( above) and Compaq Presario 2240 ( below): a showcase of a typical home computer from the 1990s.Compaq then attempted to get into the $4 billion a year networking business by partnering with Cisco Systems in 1995. However, Compaq's reign was to be short-lived after a string of bad decisions and acquisitions.The company started manufacturing printers in 1989 and those were well received, but Pfeiffer did not feel that Compaq had the resources to compete with printer king Hewlett Packard, which owned 60 percent of the market at the time. Again, much of this success had to do with bringing down the costs of entry.
Enterprise consulting was another of Digital's profitable divisions, but simply not something Compaq wanted. DEC also made minicomputers, something that Compaq also was not interested in doing. The new subsidiary had a chip making division, however Compaq had no interest in making silicon or competing against Intel, and DEC chips were not compatible with its computers.
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The company shipped way to many units to retailers, who ultimately had to dump the surplus at ridiculously low prices. The shakeup led to missed deadlines and unmoved products. A large number of layoffs occurred, and company morale tanked. As it goes, when one company takes over another, workspace cultures collide. Image: Raimond SpekkingThe DEC acquisition was arguably the beginning of the end for Compaq.
However, shifting management proved to be a case of too little, too late.Shares in Compaq had already dropped nearly 50 percent, leading to merger negotiations with rival Hewlett Packard. Before his promotion, Capellas briefly (seven weeks) served as COO and as chief information officer before that. So board chair Ben Rosen moved to replace Pfeiffer, a decision the board unanimously approved.Michael Capellas replaced Pfeiffer. New leadership was in order to mend fences with partners and improve the company's morale. It also created conflicts with partners such as Microsoft.In 1999, Compaq's board of directors felt that Pfeiffer had become out of touch with rank-and-file employees.
So HP decided to pull Compaq into its own computer line as a low-end "budget" brand. Growth in the Compaq division dwindled, and Dell subsequently surpassed it in sales. Despite doling out more than $634.5 million in bonuses to retain key personnel, there were still more than 15,000 layoffs after the two companies finalized the deal.Furthering tension saw the Compaq brand losing even more market share to its competitors. Compaq shareholders retained 36 percent of the merged company while HP held the remaining 64 percent. The board was equally divided regarding the possible merger, and when it came to a vote, the decision just barely passed.In 2002, HP absorbed Compaq for $42.2 billion.
Newsan completely abandoned the Compaq brand. It produced two new lines of Presario notebooks in 2016. In 2015, Argentinian company Grupo Newsan licensed the name to manufacture Compaq laptops in Argentina.
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