Hewlett-Packard

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This article is about the original company that existed from 1939 to 2015. Hewlett-Packard_sentence_0

For the current companies, see HP Inc. and Hewlett Packard Enterprise. Hewlett-Packard_sentence_1

"HP Compaq" redirects here. Hewlett-Packard_sentence_2

For personal computers using this brand, see HP business desktops. Hewlett-Packard_sentence_3

Hewlett-Packard_table_infobox_0

Hewlett-Packard CompanyHewlett-Packard_table_caption_0
Former typeHewlett-Packard_header_cell_0_0_0 PublicHewlett-Packard_cell_0_0_1
Traded asHewlett-Packard_header_cell_0_1_0 NYSE: HPQHewlett-Packard_cell_0_1_1
IndustryHewlett-Packard_header_cell_0_2_0 Computer hardware

Computer software IT services IT consultingHewlett-Packard_cell_0_2_1

FateHewlett-Packard_header_cell_0_3_0 Corporate split; PC and printer business renamed as HP Inc.; server, storage, and networking business spun off into Hewlett Packard EnterpriseHewlett-Packard_cell_0_3_1
SuccessorsHewlett-Packard_header_cell_0_4_0 HP Inc.

Hewlett Packard Enterprise DXC Technology Micro FocusHewlett-Packard_cell_0_4_1

FoundedHewlett-Packard_header_cell_0_5_0 January 1, 1939; 81 years ago (1939-01-01)Hewlett-Packard_cell_0_5_1
FoundersHewlett-Packard_header_cell_0_6_0 Hewlett-Packard_cell_0_6_1
DefunctHewlett-Packard_header_cell_0_7_0 November 1, 2015 (2015-11-01) (main company). Now operating as HP Inc.Hewlett-Packard_cell_0_7_1
HeadquartersHewlett-Packard_header_cell_0_8_0 Palo Alto, California, U.S.Hewlett-Packard_cell_0_8_1
Area servedHewlett-Packard_header_cell_0_9_0 WorldwideHewlett-Packard_cell_0_9_1
ProductsHewlett-Packard_header_cell_0_10_0 List of Hewlett-Packard productsHewlett-Packard_cell_0_10_1
SubsidiariesHewlett-Packard_header_cell_0_11_0 List of subsidiariesHewlett-Packard_cell_0_11_1

The Hewlett-Packard Company, commonly shortened to Hewlett-Packard or HP, (/ˈhjuːlɪt ˈpækərd/ HEW-lit PAK-ərd), was an American multinational information technology company headquartered in Palo Alto, California, that developed and provided a wide variety of hardware components, as well as software and related services to consumers, small and medium-sized businesses (SMBs) and large enterprises, including customers in the government, health and education sectors. Hewlett-Packard_sentence_4

The company was founded in a one-car garage in Palo Alto, California by Bill Hewlett and David Packard in 1939, and initially produced a line of electronic test and measurement equipment. Hewlett-Packard_sentence_5

The HP Garage at 367 Addison Avenue is now designated an official California Historical Landmark, and is marked with a plaque calling it the "Birthplace of 'Silicon Valley'". Hewlett-Packard_sentence_6

The company got its first big contract in 1938, providing its test and measurement instruments for production of Walt Disney's hugely successful animated film Fantasia. Hewlett-Packard_sentence_7

This success led Hewlett and Packard to formally establish their Hewlett-Packard Company on January 1, 1939. Hewlett-Packard_sentence_8

The company grew into a multinational corporation widely respected for its products, and its management style and culture known as the HP Way, which was adopted by other businesses worldwide. Hewlett-Packard_sentence_9

HP was the world's leading PC manufacturer from 2007 until the second quarter of 2013, when Lenovo moved ahead of HP. Hewlett-Packard_sentence_10

HP specialized in developing and manufacturing computing, data storage, and networking hardware, designing software and delivering services. Hewlett-Packard_sentence_11

Major product lines included personal computing devices, enterprise and industry standard servers, related storage devices, networking products, software and a diverse range of printers and other imaging products. Hewlett-Packard_sentence_12

HP directly marketed its products to households, small- to medium-sized businesses and enterprises as well as via online distribution, consumer-electronics and office-supply retailers, software partners and major technology vendors. Hewlett-Packard_sentence_13

HP also offered services and a consulting business for its products and partner products. Hewlett-Packard_sentence_14

In 1999, Hewlett-Packard Company spun off its electronic and bio-analytical test and measurement instruments business as Agilent Technologies; HP retained focus on its later products, including computers and printers. Hewlett-Packard_sentence_15

It merged with Compaq in 2002, and acquired EDS in 2008, leading to combined revenues of $118.4 billion that year and a Fortune 500 ranking of 9 in 2009. Hewlett-Packard_sentence_16

In November 2009, HP announced its acquisition of 3Com, with the deal closing on April 12, 2010. Hewlett-Packard_sentence_17

On April 28, 2010, HP announced its buyout of Palm, Inc. for $1.2 billion. Hewlett-Packard_sentence_18

On September 2, 2010, HP won its bidding war for 3PAR with a $33 a share offer ($2.07 billion), which Dell declined to match. Hewlett-Packard_sentence_19

On November 1, 2015, the company spun off its enterprise products and services business Hewlett Packard Enterprise. Hewlett-Packard_sentence_20

Hewlett-Packard retained the personal computer and printer businesses and was renamed HP Inc. Hewlett-Packard_sentence_21

History Hewlett-Packard_section_0

Bill Hewlett and David Packard graduated with degrees in electrical engineering from Stanford University in 1935. Hewlett-Packard_sentence_22

The company originated in a garage in nearby Palo Alto during a fellowship they had with past professor Frederick Terman at Stanford during the Great Depression. Hewlett-Packard_sentence_23

They considered Terman a mentor in forming Hewlett-Packard. Hewlett-Packard_sentence_24

In 1938, Packard and Hewlett began part-time work in a rented garage with an initial capital investment of US$538, equivalent to $9,772 in 2019. Hewlett-Packard_sentence_25

In 1939, Hewlett and Packard decided to formalize their partnership. Hewlett-Packard_sentence_26

They tossed a coin to decide whether the company they founded would be called Hewlett-Packard (HP) or Packard-Hewlett. Hewlett-Packard_sentence_27

HP was incorporated on August 18, 1947, and went public on November 6, 1957. Hewlett-Packard_sentence_28

Of the many projects they worked on, their first financially successful product was a precision audio oscillator known as the Model HP200A. Hewlett-Packard_sentence_29

Their innovation was the use of a small incandescent light bulb (known as a "pilot light") as a temperature dependent resistor in a critical portion of the circuit, the negative feedback loop which stabilized the amplitude of the output sinusoidal waveform. Hewlett-Packard_sentence_30

This allowed them to sell the Model 200A for $89.40 when competitors were selling less stable oscillators for over $200. Hewlett-Packard_sentence_31

The Model 200 series of generators continued production until at least 1972 as the 200AB, still tube-based but improved in design through the years. Hewlett-Packard_sentence_32

One of the company's earliest customers was Bud Hawkins, chief sound engineer for Walt Disney Studios, who bought eight Model 200B audio oscillators (at $71.50 each) for use in the animated film Fantasia. Hewlett-Packard_sentence_33

HP's profit at the end of 1939, its first full year of business, was $1563 on revenues of $5369. Hewlett-Packard_sentence_34

They worked on counter-radar technology and artillery shell proximity fuzes during World War II, which allowed Packard (but not Hewlett) to be exempt from the draft. Hewlett-Packard_sentence_35

Hewlett served as an officer in the Army Signal Corps after being called to active duty. Hewlett-Packard_sentence_36

In 1942, they built their first building at 395 Page Mill Road and were awarded the Army-Navy "E" Award in 1943. Hewlett-Packard_sentence_37

HP's line of products during the war included the audio oscillator, a wave analyzer, distortion analyzers, an audio-signal generator, and the Model 400A vacuum-tube voltmeter, and employed 200 people. Hewlett-Packard_sentence_38

In 1947, the company incorporated with Packard as president. Hewlett-Packard_sentence_39

He handed the presidency over to Hewlett when he became chairman in 1964, but remained CEO of the company. Hewlett-Packard_sentence_40

Sales reached $5.5 million in 1951 with 215 employees. Hewlett-Packard_sentence_41

In 1959, a manufacturing plant was established in Böblingen and a marketing organization in Geneva. Hewlett-Packard_sentence_42

1960s Hewlett-Packard_section_1

HP is recognized as the symbolic founder of Silicon Valley, although it did not actively investigate semiconductor devices until a few years after the "traitorous eight" had abandoned William Shockley to create Fairchild Semiconductor in 1957. Hewlett-Packard_sentence_43

Hewlett-Packard's HP Associates division, established around 1960, developed semiconductor devices primarily for internal use. Hewlett-Packard_sentence_44

HP Associates was co-founded by another former Bell Labs researcher, MOSFET (MOS transistor) inventor Mohamed Atalla, who served as Director of Semiconductor Research. Hewlett-Packard_sentence_45

Instruments and calculators were some of the products using semiconductor devices from HP Associates. Hewlett-Packard_sentence_46

During the 1960s, HP partnered with Sony and the Yokogawa Electric companies in Japan to develop several high-quality products. Hewlett-Packard_sentence_47

The products were not a huge success, as there were high costs involved in building HP-looking products in Japan. Hewlett-Packard_sentence_48

In 1963, HP and Yokogawa formed the joint venture Yokogawa-Hewlett-Packard to market HP products in Japan. Hewlett-Packard_sentence_49

HP bought Yokogawa Electric's share of Hewlett-Packard Japan in 1999. Hewlett-Packard_sentence_50

HP spun off the small company Dynac to specialize in digital equipment. Hewlett-Packard_sentence_51

The name was picked so that the HP logo could be turned upside down to be a reflected image of the logo of the new company. Hewlett-Packard_sentence_52

Eventually, Dynac was renamed Dymec, and was folded back into HP in 1959. Hewlett-Packard_sentence_53

HP experimented with using Digital Equipment Corporation (DEC) minicomputers with its instruments, but after deciding that it would be easier to build another small design team than deal with DEC, HP entered the computer market in 1966 with the HP 2100 / HP 1000 series of minicomputers. Hewlett-Packard_sentence_54

These had a simple accumulator-based design, with two accumulator registers and, in the HP 1000 models, two index registers. Hewlett-Packard_sentence_55

The series was produced for 20 years, in spite of several attempts to replace it, and was a forerunner of the HP 9800 and HP 250 series of desktop and business computers. Hewlett-Packard_sentence_56

At the end of 1968, co-founder Packard handed over the duties of CEO to Hewlett to become United States Deputy Secretary of Defense in the incoming Nixon administration. Hewlett-Packard_sentence_57

He resumed the chairmanship in 1972 and served until 1993, but Hewlett remained the CEO. Hewlett-Packard_sentence_58

1970s Hewlett-Packard_section_2

The HP 3000 was an advanced stack-based design for a business computing server, later redesigned with RISC technology. Hewlett-Packard_sentence_59

The HP 2640 series of smart and intelligent terminals introduced forms-based interfaces to ASCII terminals, and also introduced screen labeled function keys, now commonly used on gas pumps and bank ATMs. Hewlett-Packard_sentence_60

The HP 2640 series included one of the first bit mapped graphics displays that when combined with the HP 2100 21MX F-Series microcoded Scientific Instruction Set enabled the first commercial WYSIWYG Presentation Program, BRUNO that later became the program HP-Draw on the HP 3000. Hewlett-Packard_sentence_61

Although scoffed at in the formative days of computing, HP would eventually surpass even IBM as the world's largest technology vendor, in terms of sales. Hewlett-Packard_sentence_62

HP is identified by Wired magazine as the producer of the world's first device to be called a personal computer: the Hewlett-Packard 9100A, introduced in 1968. Hewlett-Packard_sentence_63

HP called it a desktop calculator because, as Bill Hewlett said, "If we had called it a computer, it would have been rejected by our customers' computer gurus because it didn't look like an IBM. Hewlett-Packard_sentence_64

We therefore decided to call it a calculator, and all such nonsense disappeared." Hewlett-Packard_sentence_65

An engineering triumph at the time, the logic circuit was produced without any integrated circuits; the assembly of the CPU having been entirely executed in discrete components. Hewlett-Packard_sentence_66

With CRT display, magnetic-card storage, and printer, the price was around $5,000. Hewlett-Packard_sentence_67

The machine's keyboard was a cross between that of a scientific calculator and an adding machine. Hewlett-Packard_sentence_68

There was no alphabetic keyboard. Hewlett-Packard_sentence_69

Apple co-founder Steve Wozniak originally designed the Apple I computer while working at HP and offered it to them under their right of first refusal to his work; they did not take it up as the company wanted to stay in scientific, business, and industrial markets. Hewlett-Packard_sentence_70

Wozniak said that HP "turned him down five times", but that his loyalty to HP made him hesitant to start Apple with Steve Jobs. Hewlett-Packard_sentence_71

The company earned global respect for a variety of products. Hewlett-Packard_sentence_72

They introduced the world's first handheld scientific electronic calculator in 1972 (the HP-35), the first handheld programmable in 1974 (the HP-65), the first alphanumeric, programmable, expandable in 1979 (the HP-41C), and the first symbolic and graphing calculator, the HP-28C. Hewlett-Packard_sentence_73

Like their scientific and business calculators, their oscilloscopes, logic analyzers, and other measurement instruments have a reputation for sturdiness and usability (the latter products are now part of spin-off Agilent's product line, which were later spun off from Agilent as Keysight Technologies). Hewlett-Packard_sentence_74

The company's design philosophy in this period was summarized as "design for the guy at the next bench". Hewlett-Packard_sentence_75

The HP 9800 series of technical desktop computers started in 1975 with the 9815, and the cheaper HP series 80, again of technical computers, started in 1979 with the 85. Hewlett-Packard_sentence_76

These machines used a version of the BASIC programming language which was available immediately after they were switched on, and used a proprietary magnetic tape for storage. Hewlett-Packard_sentence_77

HP computers were similar in capabilities to the much later IBM Personal Computer, although the limitations of available technology forced prices to be high. Hewlett-Packard_sentence_78

In 1978 co-founder Hewlett stepped down as CEO and was succeeded by John A. Hewlett-Packard_sentence_79 Young. Hewlett-Packard_sentence_80

1980s Hewlett-Packard_section_3

Sales reach $6.5 billion in 1985 with 85,000 employees. Hewlett-Packard_sentence_81

In 1984, HP introduced both inkjet and laser printers for the desktop. Hewlett-Packard_sentence_82

Along with its scanner product line, these have later been developed into successful multifunction products, the most significant being single-unit printer/scanner/copier/fax machines. Hewlett-Packard_sentence_83

The print mechanisms in HP's tremendously popular LaserJet line of laser printers depend almost entirely on Canon Inc.'s components (print engines), which in turn use technology developed by Xerox. Hewlett-Packard_sentence_84

HP develops the hardware, firmware, and software to convert data into dots for printing. Hewlett-Packard_sentence_85

On March 3, 1986, HP registered the HP.com domain name, making it the ninth Internet .com domain ever to be registered. Hewlett-Packard_sentence_86

In 1987, the Palo Alto garage where Hewlett and Packard started their business was designated as a California State historical landmark. Hewlett-Packard_sentence_87

1990s Hewlett-Packard_section_4

In the 1990s, HP expanded their computer product line, which initially had been targeted at university, research, and business users, to reach consumers. Hewlett-Packard_sentence_88

HP also grew through acquisitions. Hewlett-Packard_sentence_89

It bought Apollo Computer in 1989 and Convex Computer in 1995. Hewlett-Packard_sentence_90

In 1992, CEO John Young was succeeded by Lewis E. Platt, and in 1993 and co-founders Hewlett and Packard stepped down from the board with Platt succeeding Packard as chairman. Hewlett-Packard_sentence_91

Later in the decade, HP opened hpshopping.com as an independent subsidiary to sell online, direct to consumers; in 2005, the store was renamed "HP Home & Home Office Store." Hewlett-Packard_sentence_92

From 1995 to 1998, Hewlett-Packard were sponsors of the English football team Tottenham Hotspur. Hewlett-Packard_sentence_93

In 1999, all of the businesses not related to computers, storage, and imaging were spun off from HP to form Agilent Technologies. Hewlett-Packard_sentence_94

Agilent's spin-off was the largest initial public offering in the history of Silicon Valley. Hewlett-Packard_sentence_95

The spin-off created an $8 billion company with about 30,000 employees, manufacturing scientific instruments, semiconductors, optical networking devices, and electronic test equipment for telecom and wireless R&D and production. Hewlett-Packard_sentence_96

In July 1999, HP appointed Carly Fiorina, formerly of AT&T and Lucent, as the first female CEO of a Fortune-20 company in the Dow Jones Industrial Average. Hewlett-Packard_sentence_97

Fiorina received a larger signing offer than any of her predecessors. Hewlett-Packard_sentence_98

Fiorina served as CEO during the technology downturn of the early 2000s and led the merger with Compaq that was "disastrous", according to CNN and led to the firing of 30,000 U.S. employees. Hewlett-Packard_sentence_99

Under her leadership, the company doubled in size. Hewlett-Packard_sentence_100

Her tenure as CEO was beset by damaging leaks. Hewlett-Packard_sentence_101

The HP Board of Directors asked Fiorina to step down in 2005 following a boardroom disagreement, and she resigned on February 9, 2005. Hewlett-Packard_sentence_102

Sales to Iran despite sanctions Hewlett-Packard_section_5

In 1997, HP started selling its products in Iran through a European subsidiary and a Dubai-based Middle Eastern distributor, despite U.S. export sanctions prohibiting such deals imposed by Bill Clinton's executive orders issued in 1995. Hewlett-Packard_sentence_103

The story was initially reported by The Boston Globe, and it triggered an inquiry by the SEC. Hewlett-Packard_sentence_104

HP responded that products worth US$120 million were sold in fiscal year 2008 for distribution by way of Redington Gulf, a company based in the Netherlands, and that as these sales took place through a foreign subsidiary, HP had not violated sanctions. Hewlett-Packard_sentence_105

HP named Redington Gulf "Wholesaler of the Year" in 2003, which in turn published a press release stating that "[t]he seeds of the Redington-Hewlett-Packard relationship were sowed six years ago for one market — Iran." Hewlett-Packard_sentence_106

At that time, Redington Gulf had only three employees whose sole purpose was to sell HP products to the Iran market. Hewlett-Packard_sentence_107

According to former officials who worked on sanctions, HP was using a loophole by routing their sales through a foreign subsidiary. Hewlett-Packard_sentence_108

HP ended its relationship with Redington Gulf after the SEC inquiry. Hewlett-Packard_sentence_109

2000–2005 Hewlett-Packard_section_6

On September 3, 2001, HP announced that an agreement had been reached with Compaq to merge the two companies. Hewlett-Packard_sentence_110

In May 2002, after passing a shareholder vote, HP officially merged with Compaq. Hewlett-Packard_sentence_111

Prior to this, plans had been in place to consolidate the companies' product teams and product lines. Hewlett-Packard_sentence_112

Compaq had already taken over Tandem Computers in 1997 and Digital Equipment Corporation in 1998. Hewlett-Packard_sentence_113

HP therefore still offers support for the former Tandem NonStop family and Digital Equipment products PDP-11, VAX and AlphaServer. Hewlett-Packard_sentence_114

The merger occurred after a proxy fight with Bill Hewlett's son Walter, who objected to the merger. Hewlett-Packard_sentence_115

Compaq itself had bought Tandem Computers in 1997 (which had been started by ex-HP employees), and Digital Equipment Corporation in 1998. Hewlett-Packard_sentence_116

Following this strategy, HP became a major player in desktops, laptops, and servers for many different markets. Hewlett-Packard_sentence_117

After the merger with Compaq, the new ticker symbol became "HPQ", a combination of the two previous symbols, "HWP" and "CPQ", to show the significance of the alliance and also key letters from the two companies Hewlett-Packard and Compaq (the latter company being famous for its "Q" logo on all of its products). Hewlett-Packard_sentence_118

In 2004, HP released the DV 1000 Series, including the HP Pavilion dv 1658 and 1040 two years later in May 2006, HP began its campaign, "The Computer is Personal Again". Hewlett-Packard_sentence_119

The campaign was designed to bring back the fact that the PC is a personal product. Hewlett-Packard_sentence_120

The campaign utilized viral marketing, sophisticated visuals and its own website (www.hp.com/personal). Hewlett-Packard_sentence_121

Some of the ads featured Pharrell, Petra Nemcova, Mark Burnett, Mark Cuban, Alicia Keys, Jay-Z, Gwen Stefani, and Shaun White. Hewlett-Packard_sentence_122

In January 2005, following years of under performance, which included HP's Compaq merger that fell short, and disappointing earning reports, the board asked Fiorina to resign as chair and chief executive officer of the company. Hewlett-Packard_sentence_123

Following the news of Fiorina's departure, HP's stock jumped 6.9 percent. Hewlett-Packard_sentence_124

Robert Wayman, chief financial officer of HP, served as interim CEO while the board undertook a formal search for a replacement. Hewlett-Packard_sentence_125

Mark Hurd of NCR Corporation was hired to take over as CEO and president, effective 1 April 2005. Hewlett-Packard_sentence_126

Hurd was the board's top choice given the revival of NCR that took place under his leadership. Hewlett-Packard_sentence_127

2006–2009 Hewlett-Packard_section_7

In 2006, HP unveiled several new products including desktops, enhanced notebooks, a workstation and software to manage them, OpenView Client Configuration Manager 2.0. Hewlett-Packard_sentence_128

In the same year, HP's share price skyrocketed due to consistent results in the last couple quarters of the year with Hurd's plan to cutback HP's workforce and lower costs. Hewlett-Packard_sentence_129

In July 2007, HP signed a definitive agreement to acquire Opsware in a cash tender deal that values the company at $14.25 per share. Hewlett-Packard_sentence_130

This combined Opsware software with the Oracle enterprise IT management software. Hewlett-Packard_sentence_131

In the first few years of Hurd's new role, HP's stock price more than doubled. Hewlett-Packard_sentence_132

By the end of Fiscal 2007, HP hit the $100 Billion mark for the first time. Hewlett-Packard_sentence_133

The company's annual revenue reached $104 Billion, allowing HP to overtake competitor IBM. Hewlett-Packard_sentence_134

On May 13, 2008, HP and Electronic Data Systems (EDS) announced that they had signed a definitive agreement under which HP would purchase EDS. On June 30, HP announced that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 had expired. Hewlett-Packard_sentence_135

"The transaction still requires EDS stockholder approval and regulatory clearance from the European Commission and other non-U.S. jurisdictions and is subject to the satisfaction or waiver of the other closing conditions specified in the merger agreement." Hewlett-Packard_sentence_136

The agreement was finalized on August 26, 2008 at $13 billion, and it was publicly announced that EDS would be re-branded "EDS a HP company." Hewlett-Packard_sentence_137

The first targeted layoff of 24,600 former EDS workers was announced on September 15, 2008. Hewlett-Packard_sentence_138

(The company's 2008 Annual Report gave the number as 24,700, to be completed by end of 2009.) Hewlett-Packard_sentence_139

This round was factored into purchase price as a $19.5 billion liability against goodwill. Hewlett-Packard_sentence_140

As of September 23, 2009, EDS is known as HP Enterprise Services. Hewlett-Packard_sentence_141

On November 11, 2009, 3Com and Hewlett-Packard announced that Hewlett-Packard would be acquiring 3Com for $2.7 billion in cash. Hewlett-Packard_sentence_142

The acquisition is one of the biggest in size among a series of takeovers and acquisitions by technology giants to push their way to become one-stop shops. Hewlett-Packard_sentence_143

Since the beginning of the financial crisis in 2007, tech giants have constantly felt the pressure to expand beyond their current market niches. Hewlett-Packard_sentence_144

Dell purchased Perot Systems recently to invade into the technology consulting business area previously dominated by IBM. Hewlett-Packard_sentence_145

Hewlett-Packard's latest move marked its incursion into enterprise networking gear market dominated by Cisco. Hewlett-Packard_sentence_146

2010–2012 Hewlett-Packard_section_8

On April 28, 2010, Palm, Inc. and Hewlett-Packard announced that HP would buy Palm for $1.2 billion in cash and debt. Hewlett-Packard_sentence_147

Before this announcement, it was rumored that either HTC, Dell, Research in Motion or HP would buy Palm. Hewlett-Packard_sentence_148

Adding Palm handsets to the HP product line created some overlap with the iPAQ series of mobile devices but was thought to significantly improve HP's mobile presence as iPAQ devices had not been selling well. Hewlett-Packard_sentence_149

Buying Palm gave HP a library of valuable patents, as well as the mobile operating platform known as webOS. Hewlett-Packard_sentence_150

On July 1, 2010, the acquisition of Palm was final. Hewlett-Packard_sentence_151

The purchase of Palm's webOS began a big gamble – to build HP's own ecosystem. Hewlett-Packard_sentence_152

On July 1, 2011, HP launched its first tablet named HP TouchPad, bringing webOS to tablet devices. Hewlett-Packard_sentence_153

On September 2, 2010, HP won its bidding war for 3PAR with a $33 a share offer ($2.07 billion) which Dell declined to match. Hewlett-Packard_sentence_154

After HP's acquisition of Palm, it phased out the Compaq brand. Hewlett-Packard_sentence_155

On August 6, 2010, CEO Mark Hurd resigned amid controversy and CFO Cathie Lesjak assumed the role of interim CEO. Hewlett-Packard_sentence_156

Hurd had turned HP around and was widely regarded as one of Silicon Valley's star CEOs. Hewlett-Packard_sentence_157

Under his leadership, HP became the largest computer company in the world when measured by total revenue. Hewlett-Packard_sentence_158

Accused of sexual harassment against a colleague, the allegations were deemed baseless. Hewlett-Packard_sentence_159

The investigation led to questions concerning between $1000 and $20000 of his private expenses and his lack of disclosure related to the friendship. Hewlett-Packard_sentence_160

Some observers have argued that Hurd was innocent, but the board asked for his resignation to avoid negative PR. Hewlett-Packard_sentence_161

Public analysis was divided between those who saw it as a commendable tough action by HP in handling expenses irregularities, and those who saw it as an ill-advised, hasty and expensive reaction, in ousting a remarkably capable leader who had turned the business around. Hewlett-Packard_sentence_162

At HP, Hurd oversaw a series of acquisitions worth over $20 billion. Hewlett-Packard_sentence_163

This allowed the company to expand into services of networking equipment and smartphones. Hewlett-Packard_sentence_164

Shares of HP dropped by 8.4% in after-hours trading, hitting a 52-week low with $9 billion in market capitalization shaved off. Hewlett-Packard_sentence_165

Larry Ellison publicly attacked HP's board for his ousting, stating that the HP board had "made the worst personnel decision since the idiots on the Apple board fired Steve Jobs many years ago." Hewlett-Packard_sentence_166

On September 30, 2010, Léo Apotheker was named as HP's new CEO and President. Hewlett-Packard_sentence_167

Apotheker's appointment sparked a strong reaction from Oracle chief executive Larry Ellison, who complained that Apotheker had been in charge of SAP when one of its subsidiaries was systematically stealing software from Oracle. Hewlett-Packard_sentence_168

SAP accepted that its subsidiary, which has now closed, illegally accessed Oracle intellectual property. Hewlett-Packard_sentence_169

Following Hurd's departure, HP was seen by the market as problematic, with margins falling and having failed to redirect and establish itself in major new markets such as cloud and mobile services. Hewlett-Packard_sentence_170

Apotheker's strategy was broadly to aim at disposing of hardware and moving into the more profitable software services sector. Hewlett-Packard_sentence_171

On August 18, 2011, HP announced that it would strategically exit the smartphone and tablet computer business, focusing on higher-margin "strategic priorities of Cloud, solutions and software with an emphasis on enterprise, commercial and government markets" They also contemplated selling off their personal computer division or spinning it off into a separate company, quitting the 'PC' business, while continuing to sell servers and other equipment to business customers, was a strategy already undertaken by IBM in 2005. Hewlett-Packard_sentence_172

HP's stock continued to drop, by about a further 40% (including 25% on one day, August 19, 2011), after the company abruptly announced a number of decisions: to discontinue its webOS device business (mobile phones and tablet computers), the intent to sell its personal computer division (at the time HP was the largest personal computer manufacturer in the world), and to acquire British big data software firm Autonomy for a 79% premium, seen externally as an "absurdly high" price for a business with known concerns over its accounts. Hewlett-Packard_sentence_173

Media analysts described HP's actions as a "botched strategy shift" and a "chaotic" attempt to rapidly reposition HP and enhance earnings that ultimately cost Apotheker his job. Hewlett-Packard_sentence_174

The Autonomy acquisition had been objected to even by HP's own CFO. Hewlett-Packard_sentence_175

On September 22, 2011, the HP Board of Directors fired Apotheker as chief executive, effective immediately, and replaced him with fellow board member and former eBay chief Meg Whitman, with Raymond J. Lane as executive chairman. Hewlett-Packard_sentence_176

Though Apotheker served barely ten months, he received over $13 million in compensation. Hewlett-Packard_sentence_177

HP lost more than $30 billion in market capitalization during his tenure. Hewlett-Packard_sentence_178

Weeks later, HP announced that a review had concluded their PC division was too integrated and critical to business operations, and the company reaffirmed their commitment to the Personal Systems Group. Hewlett-Packard_sentence_179

A year later in November 2012 wrote-down almost $9 billion related to the Autonomy acquisition (see below: Takeover of Autonomy), which became the subject of intense litigation as HP accused Autonomy's previous management of fraudulently exaggerating Autonomy's financial position and called in law enforcement and regulators in both countries, and Autonomy's previous management accused HP of "textbook" obfuscation and finger pointing to protect HP's executives from criticism and conceal HP culpability, their prior knowledge of Autonomy's financial position, and gross mismanagement of Autonomy after acquisition. Hewlett-Packard_sentence_180

On March 21, 2012, HP said its printing and PC divisions would become one unit headed by Todd Bradley from the PC division. Hewlett-Packard_sentence_181

Printing chief Vyomesh Joshi is leaving the company. Hewlett-Packard_sentence_182

On May 23, 2012, HP announced plans to lay off approximately 27,000 employees, after posting a profit decline of 31% in the second quarter of 2012. Hewlett-Packard_sentence_183

The profit decline is on account of the growing popularity of smart phones, tablets, and other mobile devices, that has slowed the sale of personal computers. Hewlett-Packard_sentence_184

On May 30, 2012, HP unveiled its first net zero energy data center. Hewlett-Packard_sentence_185

HP data center plans to use solar energy and other renewable sources instead of traditional power grids. Hewlett-Packard_sentence_186

On July 10, 2012, HP's Server Monitoring Software was discovered to have a previously unknown security vulnerability. Hewlett-Packard_sentence_187

A security warning was given to customers about two vulnerabilities, and a patch released. Hewlett-Packard_sentence_188

One month later, HP's official site of training center was hacked and defaced by a Pakistani hacker known as "Hitcher", to demonstrate a Web vulnerability. Hewlett-Packard_sentence_189

On September 10, 2012, HP revised their restructuring figures; they started cutting 29,000 jobs. Hewlett-Packard_sentence_190

HP had already cut 3,800 jobs as of July 2012,around 7 percent of the revised 29,000 figure. Hewlett-Packard_sentence_191

2013–2015 Hewlett-Packard_section_9

On December 31, 2013, HP revised the number of jobs cut from 29,000 to 34,000 up to October 2014. Hewlett-Packard_sentence_192

The current number of jobs cut until the end of 2013 was 24,600. Hewlett-Packard_sentence_193

At the end of 2013 the company had 317,500 employees. Hewlett-Packard_sentence_194

On May 22, 2014 HP announced it would cut a further 11,000 to 16,000 jobs, in addition to the 34,000 announced in 2013. Hewlett-Packard_sentence_195

"We are gradually shaping HP into a more nimble, lower-cost, more customer and partner-centric company that can successfully compete across a rapidly changing IT landscape," CEO Meg Whitman said at the time. Hewlett-Packard_sentence_196

In June 2014, during the HP Discover customer event in Las Vegas, Meg Whitman and Martin Fink announced a project for a radically new computer architecture called The Machine. Hewlett-Packard_sentence_197

Based on memristors and silicon photonics, The Machine is supposed to come in commercialization before the end of the decade, meanwhile representing 75% of the research activity in HP Labs. Hewlett-Packard_sentence_198

On October 6, 2014, Hewlett-Packard announced it was planning to split into two separate companies, separating its personal computer and printer businesses from its technology services. Hewlett-Packard_sentence_199

The split, which was first reported by The Wall Street Journal and confirmed by other media, would result in two publicly traded companies: Hewlett Packard Enterprise and HP Inc. Meg Whitman would serve as chairman of HP Inc. and CEO of Hewlett Packard Enterprise, Patricia Russo would be chairman of the enterprise business, and Dion Weisler would be CEO of HP, Inc. Hewlett-Packard_sentence_200

On October 29, 2014, Hewlett-Packard announced their new Sprout personal computer. Hewlett-Packard_sentence_201

In May 2015, the company announced it would be selling its controlling 51 percent stake in its Chinese data-networking business to Tsinghua Unigroup for a fee of at least $2.4 billion. Hewlett-Packard_sentence_202

On November 1, 2015, as previously announced, Hewlett-Packard changed its name to HP Inc. and spun off Hewlett Packard Enterprise as a new publicly traded company. Hewlett-Packard_sentence_203

Because of this, HP Inc. retains Hewlett-Packard's stock price history and its stock ticker symbol, , while Hewlett Packard Enterprise trades under its own symbol, . Hewlett-Packard_sentence_204

Facilities Hewlett-Packard_section_10

HP's global operations are directed from its headquarters in Palo Alto, California, USA. Hewlett-Packard_sentence_205

Its U.S. operations are directed from its facility in unincorporated Harris County, Texas, near Houston. Hewlett-Packard_sentence_206

Its Latin America offices are in unincorporated Miami-Dade County, Florida, U.S., near Miami; Its Europe offices are in Meyrin, Switzerland, near Geneva, but it has also a research center in the Paris-Saclay cluster, 20 km south of Paris, France. Hewlett-Packard_sentence_207

Its Asia-Pacific offices are in Singapore. Hewlett-Packard_sentence_208

It also has large operations in Leixlip, Ireland; Austin, Texas; Boise, Idaho; Corvallis, Oregon; Fort Collins, Colorado; Roseville, California; Saint Petersburg, Florida; San Diego, California; Tulsa, Oklahoma; Vancouver, Washington; Conway, Arkansas; and Plano, Texas (the former headquarters of EDS, which HP acquired). Hewlett-Packard_sentence_209

In the UK, HP is based at a large site in Bracknell, Berkshire with offices in various UK locations, including a landmark office tower in London, 88 Wood Street. Hewlett-Packard_sentence_210

Its recent acquisition of 3Com will expand its employee base to Marlborough, Massachusetts. Hewlett-Packard_sentence_211

The company also has a large workforce and numerous offices in Bucharest, Romania and at Bangalore, India, to address their back end and IT operations. Hewlett-Packard_sentence_212

MphasiS, which is headquartered at Bangalore, also enabled HP to increase their footprint in the city as it was a subsidiary of EDS which the company acquired. Hewlett-Packard_sentence_213

Products and organizational structure Hewlett-Packard_section_11

HP produced lines of printers, scanners, digital cameras, calculators, PDAs, servers, workstation computers, and computers for home and small-business use; many of the computers came from the 2002 merger with Compaq. Hewlett-Packard_sentence_214

HP as of 2001 promoted itself as supplying not just hardware and software, but also a full range of services to design, implement, and support IT infrastructure. Hewlett-Packard_sentence_215

HP's Imaging and Printing Group (IPG) was described by the company in 2005 as "the leading imaging and printing systems provider in the world for printer hardware, printing supplies and scanning devices, providing solutions across customer segments from individual consumers to small and medium businesses to large enterprises". Hewlett-Packard_sentence_216

Products and technology associated with IPG include: Hewlett-Packard_sentence_217

Hewlett-Packard_unordered_list_0

  • Inkjet and LaserJet printersHewlett-Packard_item_0_0
  • consumables and related productsHewlett-Packard_item_0_1
  • Officejet all-in-one multifunction printer/scanner/faxesHewlett-Packard_item_0_2
  • Designjet and Scitex Large Format PrintersHewlett-Packard_item_0_3
  • Indigo Digital PressHewlett-Packard_item_0_4
  • HP Web Jetadmin printer management softwareHewlett-Packard_item_0_5
  • HP Output Management suite of softwareHewlett-Packard_item_0_6
  • LightScribe optical recording technologyHewlett-Packard_item_0_7
  • HP Photosmart digital cameras and photo printersHewlett-Packard_item_0_8
  • HP SPaMHewlett-Packard_item_0_9
  • Snapfish by HP, a photo sharing and photo products service.Hewlett-Packard_item_0_10

On December 23, 2008, HP released iPrint Photo for iPhone, a free downloadable software application that allows the printing of 4" x 6" photos. Hewlett-Packard_sentence_218

HP's Personal Systems Group (PSG) was claimed by HP in 2005 to be "one of the leading vendors of personal computers ("PCs") in the world based on unit volume shipped and annual revenue." Hewlett-Packard_sentence_219

PSG dealt with: Hewlett-Packard_sentence_220

Hewlett-Packard_unordered_list_1

  • business PCs and accessoriesHewlett-Packard_item_1_11
  • consumer PCs and accessories, (e.g., HP Pavilion, Compaq Presario, VoodooPC)Hewlett-Packard_item_1_12
  • handheld computing (e.g., iPAQ Pocket PC)Hewlett-Packard_item_1_13
  • digital "connected" entertainment (e.g., HP MediaSmart TVs, HP MediaSmart Servers, HP MediaVaults, DVD+RW drives)Hewlett-Packard_item_1_14
  • Apple iPod (until November 2005).Hewlett-Packard_item_1_15

HP Enterprise Business (EB) incorporated HP Technology Services, Enterprise Services (an amalgamation of the former EDS, and what was known as HP Services), HP Enterprise Security Services oversaw professional services such as network security, information security and information assurance/compliancy, HP Software Division, and Enterprise Servers, Storage and Networking Group (ESSN). Hewlett-Packard_sentence_221

The Enterprise Servers, Storage and Networking Group (ESSN) oversaw "back end" products like storage and servers. Hewlett-Packard_sentence_222

HP Networking (former ProCurve) was responsible for the NW family of products. Hewlett-Packard_sentence_223

They were a business unit of ESSN. Hewlett-Packard_sentence_224

HP Software Division was the company's enterprise software unit. Hewlett-Packard_sentence_225

For years, HP produced and marketed its brand of enterprise-management software, HP OpenView. Hewlett-Packard_sentence_226

From September 2005 HP purchased several software companies as part of a publicized, deliberate strategy to augment its software offerings for large business customers. Hewlett-Packard_sentence_227

HP Software sold several categories of software, including: Hewlett-Packard_sentence_228

Hewlett-Packard_unordered_list_2

HP Software also provided software as a service (SaaS), cloud computing solutions, and software services, including consulting, education, professional services, and support. Hewlett-Packard_sentence_229

HP's Office of Strategy and Technology had four main functions: Hewlett-Packard_sentence_230

Hewlett-Packard_ordered_list_3

  1. steering the company's $3.6 billion research and development investmentHewlett-Packard_item_3_27
  2. fostering the development of the company's global technical communityHewlett-Packard_item_3_28
  3. leading the company's strategy and corporate development efforts,Hewlett-Packard_item_3_29
  4. performing worldwide corporate marketing activitiesHewlett-Packard_item_3_30

Under the Office of Strategy and Technology comes HP Labs, the research arm of HP. Hewlett-Packard_sentence_231

Founded in 1966, HP Labs aimed to deliver new technologies and to create business opportunities that go beyond HP's current strategies. Hewlett-Packard_sentence_232

Examples of HP Labs technology includes the Memory spot chip of 2006. Hewlett-Packard_sentence_233

HP IdeaLab further provides a web forum on early-state innovations to encourage open feedback from consumers and the development community. Hewlett-Packard_sentence_234

HP also offered managed services by which they provide complete IT-support solutions for other companies and organizations. Hewlett-Packard_sentence_235

Some examples of these include: Hewlett-Packard_sentence_236

Hewlett-Packard_unordered_list_4

  • offering "Professional Support" and desktop "Premier Support" for Microsoft in the EMEA marketplace. This was done from the Leixlip campus near Dublin, Sofia and Israel. Support was offered for Microsoft Windows, Exchange, Sharepoint, and some office applications.Hewlett-Packard_item_4_31
  • outsourced services for companies like Bank of Ireland, some UK banks, the U.S. defense forces.Hewlett-Packard_item_4_32
  • the computerisation project at Cambridge University Hospitals NHS Foundation Trust.Hewlett-Packard_item_4_33

Staff and culture Hewlett-Packard_section_12

Further information: List of Hewlett-Packard executive leadership Hewlett-Packard_sentence_237

The founders developed a management style that came to be known as "The HP Way." Hewlett-Packard_sentence_238

In Hewlett's words, the HP Way is "a core ideology ... which includes a deep respect for the individual, a dedication to affordable quality and reliability, a commitment to community responsibility, and a view that the company exists to make technical contributions for the advancement and welfare of humanity." Hewlett-Packard_sentence_239

The following are the tenets of The HP Way: Hewlett-Packard_sentence_240

Notable people Hewlett-Packard_section_13

Hewlett-Packard_unordered_list_5

Corporate social responsibility Hewlett-Packard_section_14

In July 2007, the company announced that it had met its target, set in 2004, to recycle one billion pounds of electronics, toner and ink cartridges. Hewlett-Packard_sentence_241

It set a new goal of recycling a further two billion pounds of hardware by the end of 2010. Hewlett-Packard_sentence_242

In 2006, the company recovered 187 million pounds of electronics, 73 percent more than its closest competitor. Hewlett-Packard_sentence_243

In 2008, HP released its supply chain emissions data — an industry first. Hewlett-Packard_sentence_244

In September 2009, Newsweek ranked HP No. Hewlett-Packard_sentence_245

1 on its 2009 Green Rankings of America's 500 largest corporations. Hewlett-Packard_sentence_246

According to environmentalleader.com, "Hewlett-Packard earned its number one position due to its greenhouse gas (GHG) emission reduction programs, and was the first major IT company to report GHG emissions associated with its supply chain, according to the ranking. Hewlett-Packard_sentence_247

In addition, HP has made an effort to remove toxic substances from its products, though Greenpeace has targeted the company for not doing better." Hewlett-Packard_sentence_248

HP took the top spot on Corporate Responsibility Magazine's 100 Best Corporate Citizens List for 2010. Hewlett-Packard_sentence_249

The list is cited by PR Week as one of America's most important business rankings. Hewlett-Packard_sentence_250

HP beat out other Russell 1000 Index companies because of its leadership in seven categories including environment, climate changes and corporate philanthropy. Hewlett-Packard_sentence_251

In 2009, HP was ranked fifth. Hewlett-Packard_sentence_252

Fortune magazine named HP one of the World's Most Admired Companies in 2010, placing it No. Hewlett-Packard_sentence_253

2 in the computer industry and No. Hewlett-Packard_sentence_254

32 overall in its list of the top 50. Hewlett-Packard_sentence_255

This year in the computer industry HP was ranked No. Hewlett-Packard_sentence_256

1 in social responsibility, long-term investment, global competitiveness, and use of corporate assets. Hewlett-Packard_sentence_257

In May 2011, HP released a Global Responsibility report covering accomplishments during 2010. Hewlett-Packard_sentence_258

The report, the company's tenth, provides a comprehensive view of HP's global citizenship programs, performance, and goals and describes how HP uses its technology, influence, and expertise to make a positive impact on the world. Hewlett-Packard_sentence_259

The company's 2009 report won best corporate responsibility report of the year. Hewlett-Packard_sentence_260

The 2009 reports claims HP decreased its total energy use by 9 percent compared with 2008. Hewlett-Packard_sentence_261

HP recovered a total of 118,000 tonnes of electronic products and supplies for recycling in 2009, including 61 million print cartridges. Hewlett-Packard_sentence_262

In an April 2010 San Francisco Chronicle article, HP was one of 12 companies commended for "designing products to be safe from the start, following the principles of green chemistry." Hewlett-Packard_sentence_263

The commendations came from Environment California, an environmental advocacy group, who praised select companies in the Golden State and the Bay Area for their efforts to keep our planet clean and green. Hewlett-Packard_sentence_264

In May 2010, HP was named one of the World's Most Ethical Companies by Ethisphere Institute. Hewlett-Packard_sentence_265

This is the second year in a row HP has made the list. Hewlett-Packard_sentence_266

Ethisphere reviewed, researched and analyzed thousands of nominations in more than 100 countries and 35 industries to create the 2010 list. Hewlett-Packard_sentence_267

HP was one of only 100 companies to earn the distinction of top winner and was the only computer hardware vendor to be recognized. Hewlett-Packard_sentence_268

Ethisphere honors firms that promote ethical business standards and practices by going beyond legal minimums, introducing innovative ideas that benefit the public. Hewlett-Packard_sentence_269

HP is listed in Greenpeace's Guide to Greener Electronics that ranks electronics manufacturers according to their policies on sustainability, energy and climate and green products. Hewlett-Packard_sentence_270

In November 2011, HP secured the 1st place (out of 15) in this ranking (climbing up 3 places) with an increased score of 5.9 (up from 5.5). Hewlett-Packard_sentence_271

It scored most points on the new Sustainable Operations criteria, having the best program for measuring and reducing emissions of greenhouse gases from its suppliers and scoring maximum points for its thorough paper procurement policy. Hewlett-Packard_sentence_272

In the November 2012 report, HP was ranked second, with a score of 5.7. Hewlett-Packard_sentence_273

HP does especially well for its disclosure of externally verified greenhouse gas emissions and its setting of targets for reducing them. Hewlett-Packard_sentence_274

However, Greenpeace reports that HP risks a penalty point in future editions due to the fact that it is a member of trade associations that have commented against energy efficiency standards. Hewlett-Packard_sentence_275

HP has earned recognition of its work in the area of data privacy and security. Hewlett-Packard_sentence_276

In 2010 the company ranked No. Hewlett-Packard_sentence_277

4 in the Ponemon Institute's annual study of the most trusted companies for privacy. Hewlett-Packard_sentence_278

Since 2006, HP has worked directly with the U.S. Congress, the Federal Trade Commission (FTC), and the Department of Commerce to establish a new strategy for federal legislation. Hewlett-Packard_sentence_279

HP played a key role in work toward the December 2010 FTC report "Protecting Consumer Privacy in an Era of Rapid Change." Hewlett-Packard_sentence_280

After winning nine straight annual "Most Respected Company in China" awards from the Economic Observer and Peking University, HP China has added the "10 Year Contribution" award to its list of accolades. Hewlett-Packard_sentence_281

The award aims to identify companies doing business in China with outstanding and sustained performance in business operations, development and corporate social responsibility. Hewlett-Packard_sentence_282

In its 2012 rankings of consumer electronics companies on progress relating to conflict minerals, the Enough Project rated HP second out of 24 companies, calling it a "Pioneer of progress". Hewlett-Packard_sentence_283

Brand Hewlett-Packard_section_15

According to a BusinessWeek Study, HP was the world's 11th most valuable brand as of 2009. Hewlett-Packard_sentence_284

HP has many sponsorships. Hewlett-Packard_sentence_285

One well known sponsorship is Mission: SPACE in Epcot at the Walt Disney World Resort. Hewlett-Packard_sentence_286

From 1995 to 1999, and again from 2013, HP has been the shirt sponsor of Premier League club Tottenham Hotspur F.C. From 1997 to 1999 they were sponsors of Australian Football League club North Melbourne Football Club. Hewlett-Packard_sentence_287

They also sponsored the BMW Williams Formula 1 team until 2005 (a sponsorship formerly held by Compaq), and as of 2010 sponsor Renault F1. Hewlett-Packard_sentence_288

Hewlett-Packard also had the naming rights arrangement for the HP Pavilion at San Jose, home of the San Jose Sharks NHL hockey team until 2013, in which the arena's naming rights were acquired by SAP AG, renaming the arena to the SAP Center at San Jose. Hewlett-Packard_sentence_289

The company also maintains a number of corporate sponsorships in the business sector, including sponsorships of trade organisations including Fespa (print trade exhibitions), and O'Reilly Media's Velocity (web development) conference. Hewlett-Packard_sentence_290

After the acquisition of Compaq in 2002, HP has maintained the "Compaq Presario" brand on low-end home desktops and laptops, the "HP Compaq" brand on business desktops and laptops, and the "HP ProLiant" brand on Intel-architecture servers. Hewlett-Packard_sentence_291

(The "HP Pavilion" brand is used on home entertainment laptops and all home desktops.) Hewlett-Packard_sentence_292

Tandem's "NonStop" servers are now branded as "HP Integrity NonStop". Hewlett-Packard_sentence_293

Controversies Hewlett-Packard_section_16

Restatement Hewlett-Packard_section_17

In March 2003, HP restated its first-quarter cash flow from operations, reducing it 18 percent because of an accounting error. Hewlett-Packard_sentence_294

Actual cash flow from operations was $647 million, not $791 million as reported earlier. Hewlett-Packard_sentence_295

HP shifted $144 million to net cash used in investing activities. Hewlett-Packard_sentence_296

Spying scandal Hewlett-Packard_section_18

Main article: Hewlett-Packard spying scandal Hewlett-Packard_sentence_297

On September 5, 2006, Shawn Cabalfin and David O'Neil of Newsweek wrote that HP's general counsel, at the behest of chairwoman Patricia Dunn, contracted a team of independent security experts to investigate board members and several journalists in order to identify the source of an information leak. Hewlett-Packard_sentence_298

In turn, those security experts recruited private investigators who used a spying technique known as pretexting. Hewlett-Packard_sentence_299

The pretexting involved investigators impersonating HP board members and nine journalists (including reporters for CNET, The New York Times and The Wall Street Journal) in order to obtain their phone records. Hewlett-Packard_sentence_300

The information leaked related to HP's long-term strategy and was published as part of a CNET article in January 2006. Hewlett-Packard_sentence_301

Most HP employees accused of criminal acts have since been acquitted. Hewlett-Packard_sentence_302

Hardware Hewlett-Packard_section_19

In November 2007, Hewlett-Packard released a BIOS update covering a wide range of laptops with the intent to speed up the computer fan as well as have it run constantly, whether the computer was on or off. Hewlett-Packard_sentence_303

The reason was to prevent the overheating of defective Nvidia graphics processing units (GPUs) that had been shipped to many of the original equipment manufacturers, including Hewlett-Packard, Dell, and Apple. Hewlett-Packard_sentence_304

The defect concerned the new packaging material used by Nvidia from 2007 onwards in joining the graphics chip onto the motherboard, which did not perform well under thermal cycling and was prone to develop stress cracks – effectively severing the connection between the GPU and the motherboard, leading to a blank screen. Hewlett-Packard_sentence_305

In July 2008, HP issued an extension to the initial one-year warranty to replace the motherboards of selected models. Hewlett-Packard_sentence_306

However this option was not extended to all models with the defective Nvidia chipsets despite research showing that these computers were also affected by the fault. Hewlett-Packard_sentence_307

Furthermore, the replacement of the motherboard was a temporary fix, since the fault was inherent in all units of the affected models from the point of manufacture, including the replacement motherboards offered by HP as a free 'repair'. Hewlett-Packard_sentence_308

Since this point, several websites have been documenting the issue, most notably www.hplies.com, a forum dedicated to what they refer to as Hewlett-Packard's "multi-million dollar cover up" of the issue, and www.nvidiadefect.com, which details the specifics of the fault and offers advice to the owners of affected computers. Hewlett-Packard_sentence_309

There have been several small-claims lawsuits filed in several states, as well as suits filed in other countries. Hewlett-Packard_sentence_310

Hewlett-Packard also faced a class-action lawsuit in 2009 over its i7 processor computers. Hewlett-Packard_sentence_311

The complainants stated that their systems locked up within 30 minutes of powering on, consistently. Hewlett-Packard_sentence_312

Even after being replaced with newer i7 systems, the lockups continued. Hewlett-Packard_sentence_313

Lawsuit against Oracle Hewlett-Packard_section_20

On June 15, 2011, HP filed a lawsuit in California Superior Court in Santa Clara, claiming that Oracle Corporation had breached an agreement to support the Itanium microprocessor used in HP's high-end enterprise servers. Hewlett-Packard_sentence_314

On June 15, 2011, HP sent a "formal legal demand" letter to Oracle in an attempt to force the world's No. Hewlett-Packard_sentence_315

3 software maker to reverse its decision to discontinue software development on Intel Itanium microprocessor and build its own servers. Hewlett-Packard_sentence_316

HP won the lawsuit in 2012, requiring Oracle to continue to produce software compatible with the Itanium processor. Hewlett-Packard_sentence_317

HP was awarded $3 billion in damages against Oracle on June 30, 2016. Hewlett-Packard_sentence_318

HP argued Oracle's canceling support damaged HP Itanium server brand. Hewlett-Packard_sentence_319

Oracle has announced it will appeal both the decision and damages. Hewlett-Packard_sentence_320

Takeover of Autonomy Hewlett-Packard_section_21

See also: Autonomy Corporation § Hewlett Packard Hewlett-Packard_sentence_321

In November 2012, HP recorded a writedown of around $8.8 billion related to its acquisition a year earlier of the UK based Autonomy Corporation PLC. Hewlett-Packard_sentence_322

HP accused Autonomy of deliberately inflating the value of the company prior to its takeover. Hewlett-Packard_sentence_323

The former management team of Autonomy flatly rejected the charge. Hewlett-Packard_sentence_324

At the time, HP had fired its previous CEO for expenses irregularities a year before, and appointed Léo Apotheker as CEO and President. Hewlett-Packard_sentence_325

HP was seen as problematic by the market, with margins falling and having failed to redirect and establish itself in major new markets such as cloud and mobile services. Hewlett-Packard_sentence_326

Apotheker's strategy was to aim at disposing of hardware and moving into the more profitable software services sector. Hewlett-Packard_sentence_327

As part of this strategy, Autonomy was acquired by HP in October 2011. Hewlett-Packard_sentence_328

HP paid $10.3 billion for 87.3% of the shares, valuing Autonomy at around $11.7 billion (£7.4 billion) overall, a premium of around 79% over market price. Hewlett-Packard_sentence_329

The deal was widely criticized as "absurdly high", a "botched strategy shift" and a "chaotic" attempt to rapidly reposition HP and enhance earnings, and had been objected to even by HP's own CFO. Hewlett-Packard_sentence_330

Within a year, Apotheker himself had been fired, major culture clashes became apparent and HP had written off $8.8 billion of Autonomy's value. Hewlett-Packard_sentence_331

HP claim this resulted from "accounting improprieties, misrepresentations and disclosure failures" by the previous management, who in turn accuse HP of a "textbook example of defensive stalling" to conceal evidence of its own prior knowledge and gross mismanagement and undermining of the company, noting public awareness since 2009 of its financial reporting issues and that even HP's CFO disagreed with the price paid. Hewlett-Packard_sentence_332

External observers generally state that only a small part of the write-off appears to be due to accounting mis-statements, and that HP had overpaid for businesses previously. Hewlett-Packard_sentence_333

The Serious Fraud Office (United Kingdom), and the U.S. Hewlett-Packard_sentence_334 Securities and Exchange Commission joined the FBI in investigating the potential anomalies. Hewlett-Packard_sentence_335

HP incurred much damage with its stock falling to decades' low. Hewlett-Packard_sentence_336

Three lawsuits were brought by shareholders against HP, for the fall in value of HP shares. Hewlett-Packard_sentence_337

In August 2014 a United States district court judge threw out a proposed settlement, which Autonomy's previous management had argued would be collusive and intended to divert scrutiny of HP's own responsibility and knowledge, by essentially engaging the plaintiff's attorneys from the existing cases and redirecting them against the previous Autonomy vendors and management, for a fee of up to $48 million, with plaintiffs agreeing to end any claims against HP's management and similarly redirect those claims against the previous Autonomy vendors and management. Hewlett-Packard_sentence_338

In January 2015 the SFO closed its investigation as the likelihood of a successful prosecution was low. Hewlett-Packard_sentence_339

The dispute is still being litigated in the US, and is being investigated by the UK and Ireland Financial Reporting Council. Hewlett-Packard_sentence_340

On June 9, 2015, HP agreed to pay $100 million to investors who bought HP shares between August 19, 2011, and November 20, 2012 to settle the suite over Autonomy purchase. Hewlett-Packard_sentence_341

Another term of the shareholder settlement was to sue Autonomy management. Hewlett-Packard_sentence_342

This trial took place in London in 2019. Hewlett-Packard_sentence_343

In a trial that lasted 93 days with 58 witnesses, HP "failed to produce a smoking gun for the fraud it alleges." Hewlett-Packard_sentence_344

HP's own accountants admitted that they "never formally prepared anything to attribute the irregularities to the amount of the fraud." Hewlett-Packard_sentence_345

Israeli settlements Hewlett-Packard_section_22

On October 25, 2012, Richard Falk, the Human Rights Council's Special Rapporteur on the situation of human rights in the Palestinian territories occupied since 1967, called for boycotting HP together with other "businesses that are profiting from Israeli settlements on occupied Palestinian lands until they brought their operations in line with international human rights and humanitarian law". Hewlett-Packard_sentence_346

In 2014, the Presbyterian Church voted to move forward with divestment from HP to pressure Israeli in regards to their policies toward Palestinians. Hewlett-Packard_sentence_347

In 2015, the City of Portland's Human Rights Commission requested to place Caterpillar, G4S, Hewlett-Packard, and Motorola Solutions on the city's "Do Not Buy" list. Hewlett-Packard_sentence_348

Bribery Hewlett-Packard_section_23

On April 9, 2014, an administrative proceeding before Securities and Exchange Commission was settled by HP consenting to an order acknowledging that HP had violated the Foreign Corrupt Practices Act (FCPA) when HP subsidiaries in Russia, Poland, and Mexico made improper payments to government officials to obtain or retain lucrative public contracts. Hewlett-Packard_sentence_349

The SEC's order finds that HP's subsidiary in Russia paid more than $2 million through agents and various shell companies to a Russian government official to retain a multimillion-dollar contract with the federal prosecutor's office. Hewlett-Packard_sentence_350

In Poland, HP's subsidiary provided gifts and cash bribes worth more than $600,000 to a Polish government official to obtain contracts with the national police agency. Hewlett-Packard_sentence_351

And as part of its bid to win a software sale to Mexico's state-owned petroleum company, HP's subsidiary in Mexico paid more than $1 million in inflated commissions to a consultant with close ties to company officials, and money was funneled to one of those officials. Hewlett-Packard_sentence_352

HP agreed to pay $108 million to settle the SEC charges and a parallel criminal case. Hewlett-Packard_sentence_353

See also Hewlett-Packard_section_24

Hewlett-Packard_unordered_list_6


Credits to the contents of this page go to the authors of the corresponding Wikipedia page: en.wikipedia.org/wiki/Hewlett-Packard.