How the 2 Largest US Computer Stores Started

Dell Computer Corporation and Hewlett-Packardoscillator: the model 200A. Walt Disney was HP's
are the 2 largest US computer stores. They bothearliest customers for oscillators, which it used it
started with small capital investments and limitedto improve surround sound systems for theaters
infrastructure. Through innovations and hard work,in the movie Fantasia. The oscillators sold well for
these companies earned millions of dollars, and33 years, and became the longest selling basic
continue to thrive in today's modern world.electronic design of all time.
Michael Dell, the founder of Dell ComputerHP lacked focus when it was beginning. It tried to
Corporation, is the longest-serving chief executivecreate a wide range of electronic products for
officer of Dell today. Dell started selling personalindustry and agriculture. Later on, the company
computers when he was a freshman at theconcentrated on production of high quality
University of Texas in Austin in the early 1980s.electronic test and measurement equipment.
He bought wholesale parts and put them togetherHP is recognized as the symbolic founder of Silicon
as IBM computer clones. He also used the mailValley. Hewlett-Packard's HP Associates division
order market to reach his customers. Due to hisdeveloped semi conductor devices which were
success, he left school that same year andused in calculators and other electronic
incorporated his business. This was how DELLinstruments.
Computer Corporation began.HP used Digital Equipment Corporation
Michael Dell believed in the direct selling strategy.minicomputers along with its instruments. In 1966,
He eliminated middle men who added to the costHP entered the computer market with its HP2100
of the machines. This direct selling model of DellHP1000 series of minicomputers. These powerful
allows them to build their system, which includesmodels that lasted for a good twenty years were
selling via ordering privileges and giving customerssimilar to the INTEL X86 architecture.
powerful computer systems at competitive prices.HP also introduced the HP2640 series of smart
In addition the company introduced the latestand intelligent terminals. These terminals
technology faster than other companies.form-based interfaces to ASCII terminals and
Through this strategy, Dell achieved millions ofscreen labeled function keys. They are now
dollars from its sales margins after only 2 years.commonly used on gas pumps and bank ATMs.
In 1987, Dell dominated the mail order market.In 1968, HP created their 9100A and called it a
Yet, it was clear to Dell that in order to continuedesktop calculator. Bill Hewlett called it a calculator
growing, he had to expand beyond mail order. Hebecause it does not look like an IBM computer. It
knew that he needed a larger professionalwas a breakthrough in engineering at the time
management staff in order to reach his goal. Asbecause the logic circuit was produced without
early as 1986, the company engaged E. Leeany integrated circuits. CPUs were entirely
Walker, a former investment banker, as itsexecuted in discrete components.
President.Wired Magazine acknowledged and publicized HP
Dell Computer Corporation continued to growas the producer of the world's first personal
rapidly. It opened a London office that sold $4computer. The company earned global respect
million worth of computers in 1988 alone. Thebecause of the variety of its innovative products.
company also formed a subsidiary in Canada. InThese include:
early 1988, it organized various divisions to raise• HP-35, the world's first handheld scientific
the company's profile. In 1987, it reported a $159calculator, introduced in 1972;
million sale. It went public in June 1988 with 3.5• HP-65, the first handheld programmable
million shares.calculator was made in 1974;
In 2001, Dell Computer Corporation gained the• HP 41C the first programmable and
leading share of the global PC market. In 2003,expandable alphanumeric calculator, in 1979;
the company changed its name to Dell Inc. Thus,• HP 28C the first graphical symbolic calculator,
in 2004, Michael Dell announced that he will stepwas released the same year;
down as CEO but will remain as Chairman. The• In 1984, HP introduced both inkjet and laser
corporation has continued to grow since then.printers for desktop PCs. HP also produced
Hewlett-Packardsuccessful multi-function products, among which
Hewlett-Packard, just like Dell Computerthe most significant is the printer/scanner/copier
Corporation, has its rags to riches story. In 1934,fax machine-in-one device.
Dave Packard and Bill Hewlett both graduatedIn the 1990's, HP expanded their computer
from Stanford University. It was during their postproduct line. They started to closely observe
graduate stint at Stanford when they started HPuniversities, research facilities, and enterprises for
in a small garage along Palo Alto.their computing needs.
Packard and Hewlett formally introduced theirThe company changed its name to HP Home
partnership in 1939. They started with an& Home Office Store in 2005. HP became
investment of US$538. Via toss coin, Dave wonone of the leading manufacturers of desktop and
to use his name for the business, but he chose tolaptop computers as well as database servers for
name their electronics manufacturing enterprise asmany different markets. The Palo Alto garage
Hewlett-Packard (HP).where the 2 young men started their business is
Their first successful product was a precisionnow a historical California landmark.