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Computer industry

Hewlett-Packard Unveils New Strategy to Become World's Top Computer Company

Strategic Insights

— 1 min read

Hewlett-Packard has been working on transforming itself into the world's top computer company for two years, and on Monday, the company unveiled the final major pieces of its strategy. As part of its plan, HP is expanding its product line to include desktop and portable PCs, a move that puts it in direct competition with industry leaders like IBM, Toshiba, and Compaq. HP's new line of Brio business PC models, equipped with Intel Corp.'s Celeron and Pentium II chips, starts at $799, while its new line of notebook computers is designed to compete with those of IBM, Toshiba, and Compaq.

Key Takeaways:

  • HP has become the fastest-growing PC maker, with a 72% growth in the first quarter compared to Dell's 66%.
  • The company is pushing further into the desktop and portable PC market at a time when competition is cutthroat.
  • HP's new line of Brio business PC models starts at $799, while the Brio PC 8300 series for everyday business computing starts at $949 and the 8500 series for advanced desktop computing is priced from $1,599.
  • The company plans to roll out an expanded "channel assembly program" that will allow select resellers to buy components from HP and piece them together based on customer demands.
  • HP's new line of notebook computers is designed to compete with those of IBM, Toshiba, and Compaq.
  • The company has realized that it needs to compete with a broader product line, and has decided to be a survivor in the maturing computer market.
  • HP has plans for corporate desktop computers based on Intel Corp.'s newest processors, including the low-cost Celeron chip.
  • The company hopes its expanded channel assembly program will provide a winning combination of retail and customization services.

Sources:

  • Hewlett-Packard Co.
  • International Data Corp., Framingham, Mass.
  • SAN JOSE MERCURY NEWS

Statistics:

  • HP's first-quarter growth was 72%, compared to Dell's 66%.
  • HP's new line of Brio business PC models starts at $799.
  • The Brio PC 8300 series for everyday business computing starts at $949.
  • The 8500 series for advanced desktop computing is priced from $1,599.
  • 17 years and 3 days have passed since IBM started the PC revolution.
  • Today, Dell has replaced Apple, and HP is on the verge of making it the Big Four.

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