Hewlett-Packard

Hewlett-Packard Company
	File:Hewlett-Packard logo.svg Hewlett-Packard logo used until 2015
Company type	Public
Industry	Information technology
Founded	January 1, 1939; 87 years ago in Palo Alto, California, United States
Founder	Bill Hewlett, David Packard
Defunct	November 1, 2015
Fate	Split into Hewlett Packard Enterprise and HP Inc.
Headquarters	Palo Alto, California, United States
Area served	Worldwide
Key people	Bill Hewlett (co-founder), David Packard (co-founder), John A. Young (CEO from 1978)
Products	Hardware, software, IT services, computing systems, data storage solutions, networking equipment, printers
Number of employees	85,000 (1985)
Website	www.hp.com

The Hewlett-Packard Company, widely recognized as HP, was a prominent American multinational corporation in the information technology sector. Established in 1939 by Bill Hewlett and David Packard within a modest garage located in Palo Alto, California—which served as its headquarters throughout its operation—this site is famously dubbed the "Birthplace of Silicon Valley." HP delivered an extensive array of hardware, software, and IT services tailored to consumers, small and medium-sized businesses (SMBs), large enterprises, and government agencies until its division in 2015 into Hewlett Packard Enterprise and HP Inc..

HP's origins trace back to manufacturing electronic test and measurement instruments, notably securing an early contract to supply the HP 200B audio oscillator for Walt Disney’s 1940 film Fantasia, marking a pivotal moment in the company’s formal inception. Over time, HP evolved into a global leader known for its computing systems, data storage solutions, networking equipment, software offerings, and printing devices. Its products were marketed directly to individual consumers, SMBs, corporations, and through retail outlets alongside technology partners.

In 1999, HP divested its electronic and bio-analytical testing instrument division into Agilent Technologies, subsequently concentrating on computing and printing sectors. The 2002 acquisition of Compaq represented a landmark event that considerably broadened HP’s presence in the market. Further strategic acquisitions included Electronic Data Systems in 2008 and in 2010, purchases of 3Com, Palm, Inc., and 3PAR, followed by the acquisition of Autonomy Corp. These efforts were intended to enhance HP’s position within enterprise IT services and infrastructure domains.

Despite these expansions, HP experienced financial challenges during the 2010s that prompted significant corporate restructuring. On November 1, 2015, HP divided into two publicly traded companies: Hewlett Packard Enterprise focusing on enterprise-level products and services, and HP Inc., which concentrated on personal computing devices and printers. This separation aimed to allow each entity to specialize more effectively in their respective markets and foster improved business growth opportunities.

History

Electrical engineering graduates from Stanford University in 1935, Bill Hewlett and David Packard launched HP from a garage in Palo Alto while participating in a fellowship under professor Frederick Terman, who served as a significant mentor. Beginning operations in 1938 with initial funding of , they officially established their partnership in 1939, deciding on the company name Hewlett-Packard by way of a coin toss.

Their inaugural successful product was the precision audio oscillator known as the HP 200A. This device incorporated innovative temperature-dependent resistor technology combined with negative feedback mechanisms to achieve enhanced stability at an affordable price of $89.40—substantially lower than competitors’ similar units priced above $200. The product series, including the 200AB variant, continued production until at least 1972.

Among their first customers was Walt Disney Studios’ chief sound engineer who acquired multiple HP 200B oscillators for use in the film Fantasia. By the conclusion of HP’s initial full year (1939), revenues totaled $5,369 with profits amounting to $1,563.

By 1942, HP had constructed its first dedicated facility at 395 Page Mill Road and was awarded the Army-Navy "E" Award in 1943. Employing approximately 200 personnel during World War II, the company manufactured audio oscillators, wave analyzers, distortion analyzers, signal generators, and vacuum-tube voltmeters. Hewlett and Packard contributed directly to military innovations such as counter-radar technologies and proximity fuzes; this involvement supported wartime production efforts—Packard received draft exemption while Hewlett served as an officer in the Army Signal Corps.

The company was formally incorporated on August 18, 1947, with Packard appointed president. By 1951, sales reached $5.5 million alongside a workforce of 215 employees. HP went public on November 6, 1957. Its international growth commenced in 1959 with the establishment of a manufacturing plant in Böblingen and a marketing office based in Geneva. In 1964, Packard assumed the role of chairman while Hewlett took over as president; however, Packard retained his position as CEO.

1960s

Although HP is widely regarded as a foundational figure in the creation of Silicon Valley, it only entered the semiconductor industry after the departure of the "traitorous eight" from William Shockley's team to establish Fairchild Semiconductor in 1957. Around 1960, HP launched its HP Associates division, led by Jack Melchor, focusing on developing semiconductor components primarily for internal applications. These early semiconductors were integrated into products such as instruments and calculators.

Throughout the 1960s, HP collaborated with Japanese companies Sony and Yokogawa Electric to create high-quality products, although high manufacturing costs limited the success of these ventures. In 1963, HP and Yokogawa formed a joint enterprise, Yokogawa-Hewlett-Packard, to distribute HP products within Japan; HP later acquired full control in 1999.

HP briefly separated Dynac (later renamed Dymec) to specialize in digital equipment manufacturing, but this division was reabsorbed by 1959. After exploring partnerships with Digital Equipment Corporation (DEC) minicomputers, HP officially entered the computer market in 1966 with its own HP 2100/1000 minicomputer series. These accumulator-based machines were manufactured for about twenty years and laid the foundation for subsequent desktop/business computers like the HP 9800 and HP 250.

In 1961, Hewlett-Packard became publicly traded on the New York Stock Exchange under the ticker symbol "HWP". By 1968, Packard resigned as CEO to take on the role of U.S. Deputy Secretary of Defense but returned to serve as chairman from 1972 until 1993, while Hewlett continued as CEO, providing strategic guidance during this era.

1970s

The HP 3000 represented an advanced business computing server utilizing stack-based architecture and was later updated with RISC technology. The HP 2640 series introduced innovations such as forms-based user interfaces and screen-labeled function keys—features that have since become standard in devices like ATMs and fuel dispensers. When combined with the HP 2100 21MX F-Series microcoded Scientific Instruction Set, these systems supported BRUNO, the first commercial WYSIWYG presentation software, which eventually evolved into HP-Draw on the HP 3000 platform. During this period, HP surpassed IBM to become the leading technology vendor by revenue.

Recognized by Wired as creating the inaugural personal computer globally, the Hewlett-Packard 9100A, released in 1968, was marketed as a desktop calculator to avoid resistance from traditional computer buyers. It incorporated discrete logic circuits, a CRT display, magnetic-card storage, and a printer at a price near $5,000. Its keyboard design combined elements of scientific calculators and adding machines but did not include alphabetic keys.

Steve Wozniak, co-founder of Apple, initially offered the design for the Apple I to HP under their right of first refusal; however, HP declined on five occasions, choosing instead to concentrate on scientific, industrial, and business markets. Wozniak's loyalty to HP delayed his collaboration with Steve Jobs in establishing Apple.

HP gained international acclaim for pioneering handheld calculators: introducing the first scientific model (HP-35 in 1972), programmable calculator (HP-65 in 1974), alphanumeric expandable device (HP-41C in 1979), and symbolic graphing calculator (HP-28C). Their oscilloscopes, logic analyzers, and other measurement instruments were well-regarded for robustness and ease of use.

In 1973, HP launched the Hewlett-Packard Interface Bus (HPIB) peripheral interface—later standardized as IEEE-488—which became standard equipment on most high-end test and measurement devices from 1980 onward. By 1977, HP was producing spectrum analyzers (HP856x series) and sweep generators capable of handling signals exceeding 20 GHz, alongside multimeters, frequency counters, RF amplifiers, detectors, and power supplies. These product lines formed the basis for future spin-offs such as Agilent Technologies.

The HP 9800 series technical desktop computers began with the introduction of the 9810A model in 1971; followed by the launch of the HP Series 80 starting with model 85 in 1979. Some models featured a built-in version of BASIC programming language, ready for use at startup and utilized proprietary magnetic tape storage. Although comparable in functionality to later IBM PCs, these systems were priced higher due to technological constraints at that time.

In 1978, company co-founder Bill Hewlett stepped down from his role as CEO and was succeeded by John A. Young.

1980s

During the 1980s, HP broadened its operations into South Africa, encountering opposition from activists promoting divestment due to concerns over "automating apartheid". By 1985, the company’s revenue reached $6.5 billion, supported by a workforce of 85,000 employees.

In 1984, HP introduced desktop inkjet and laser printer models, which eventually developed into popular multifunction devices integrating printing, scanning, copying, and faxing capabilities. The HP LaserJet line primarily utilized Canon components and incorporated Xerox technology, while HP was responsible for designing the hardware, firmware, and software that transformed data into printed output.

On March 3, 1986, HP secured the domain HP.com, marking it as the ninth .com domain ever registered. In 1987, the original Palo Alto garage—where Hewlett and Packard founded the company—was officially recognized as a California Historical Landmark.

1990s

Throughout the 1990s, HP diversified its computer offerings beyond corporate and research markets by launching the HP Pavilion personal computers in 1995 to target consumers. The company also expanded through acquisitions such as Apollo Computer in 1989 and Convex Computer in 1995.

Leadership changes occurred in 1992 when Young was replaced by Lewis E. Platt, who also assumed the chairman role after Hewlett and Packard departed from the board in 1993.

In 1993, HP acquired Advanced Design System (ADS) from Pathwave; this RF simulation software suite was later spun off along with related test and measurement divisions into Agilent Technologies in 1999.

HP created hpshopping.com as an independent entity to sell products directly to customers online; this platform was rebranded as "HP Home & Home Office Store" in 2005.

Between 1995 and 1999, HP served as a sponsor for English football club Tottenham Hotspur.

In 1999, HP separated its non-computer, storage, and imaging operations to establish Agilent Technologies, forming an $8 billion enterprise with approximately 30,000 employees focused on scientific instruments, semiconductors, optical networking equipment, and electronic test devices for telecommunications and research markets. Agilent’s initial public offering was the largest in Silicon Valley history at that time.

In July of that year, HP appointed Carly Fiorina as CEO—the first woman to lead a Fortune-20 company—signaling a shift in strategic leadership. Fiorina received a record signing bonus and introduced the new "rules of the garage" aimed at revitalizing the entrepreneurial culture established by HP’s founders.

Sales to Iran despite sanctions

Starting in 1997, HP began distributing products in Iran through a European subsidiary and a distributor based in Dubai despite U.S. export restrictions imposed by President Bill Clinton's executive orders from 1995. These transactions were reported by The Boston Globe, prompting an investigation by the U.S. Securities and Exchange Commission (SEC). HP disclosed that $120 million worth of products were sold during fiscal year 2008 via Redington Gulf, a Netherlands-registered company, asserting that sales executed through a foreign subsidiary did not breach sanctions.

In 2003, HP awarded Redington Gulf "Wholesaler of the Year"; at that time, this distributor employed only three staff members dedicated exclusively to the Iranian market. Former officials indicated that HP exploited a legal loophole by channeling sales through this entity. After the SEC inquiry concluded, HP terminated its partnership with Redington Gulf.

2000–2005

On September 3, 2001, HP revealed plans to merge with Compaq, forming a global technology powerhouse valued at $87 billion. Following shareholder consent, the merger was completed on May 3, 2002, and the unified company was officially launched five days later.

As a result of Compaq’s earlier acquisitions of Tandem Computers and Digital Equipment Corporation (DEC), HP gained access to product lines including Tandem NonStop servers along with DEC’s PDP-11, VAX, and Alpha platforms. Although some legacy products were phased out prior to the merger, HP continued supporting the DEC Alpha architecture until April 2007.

The merger encountered resistance from significant shareholders such as Walter Hewlett, son of HP co-founder Bill Hewlett. After the merger, HP updated its stock ticker from "HWP" to "HPQ," combining elements of both companies’ previous symbols to represent their union.

Following the merger, HP broadened its footprint in desktops, notebooks, and servers across multiple market segments. In 2002, HP launched Mscape, a mobile gaming platform designed for location-based interactive experiences.

In 2004, HP expanded the HP Pavilion laptop series with new models including the dv1000, dv4000, dv5000, and dv8000 lines.

By January 2005, after several years of underwhelming financial performance partially attributed to challenges from the Compaq integration, CEO Carly Fiorina was requested to resign by the board and officially stepped down on February 9. Subsequently, HP's stock value increased by nearly 7%. CFO Robert Wayman assumed interim CEO responsibilities during the transition period.

Mark Hurd, previously CEO of NCR Corporation, was appointed as HP’s CEO and president effective April 1, 2005. His track record in revitalizing NCR made him the board’s favored candidate to steer HP’s strategic growth and operational turnaround.

2006–2009

In 2006, HP introduced updated desktop computers, improved notebook models, a new workstation, and released OpenView Client Configuration Manager 2.0 management software. That year saw HP’s stock climb sharply following strong quarterly results attributed to CEO Mark Hurd’s workforce reductions and cost-efficiency measures. Although HP was removed from the Pacific Exchange in May, it maintained listings on both the NYSE and Nasdaq exchanges.

The company launched the marketing campaign "The Computer is Personal Again" in May 2006 to coincide with new consumer and business product releases. The campaign featured celebrities such as Pharrell Williams, Jay-Z, and Alicia Keys to highlight the personalized computing power of HP’s desktops, laptops, and software offerings.

Midway through 2006, three additional models were added to the HP Pavilion laptop series: the dv2000, dv6000, and dv9000.

In July 2007, HP acquired Opsware for $1.6 billion in cash, integrating its software solutions with Oracle’s enterprise IT management portfolio. Under Hurd’s leadership, HP’s stock price more than doubled; by fiscal year-end 2007, revenue exceeded $104 billion, surpassing IBM.

On May 13, 2008, HP announced a definitive agreement to purchase Electronic Data Systems (EDS) for $13.9 billion. After receiving regulatory clearance, the transaction closed on August 26, 2008. EDS was rebranded as HP Enterprise Services. The acquisition involved planned workforce reductions totaling approximately 24,600 former EDS employees by the end of 2009—a $19.5 billion liability recognized against goodwill.

On November 11, 2009, HP agreed to acquire networking firm 3Com for $2.7 billion in cash. This move represented HP’s strategic entry into the enterprise networking sector dominated by Cisco and reflected broader industry trends where major technology companies expanded beyond their traditional areas amid ongoing financial challenges since 2007.

2010–2012

On April 28, 2010, HP revealed its intention to acquire Palm, Inc. for $1.2 billion in cash and debt, aiming to enhance its position in the mobile sector by leveraging Palm's webOS platform and intellectual property. The acquisition was finalized on July 1, 2010, coinciding with HP’s launch of the inaugural webOS tablet, the HP TouchPad, exactly one year later. Additionally, on September 2, 2010, HP secured a victory in the bidding contest for 3PAR with a $2.07 billion offer, broadening its portfolio in storage technologies. Following the Palm deal, HP gradually retired the Compaq brand.

CEO Mark Hurd stepped down on August 6, 2010, amid controversy, leading CFO Cathie Lesjak to assume the role of interim CEO. Hurd had been instrumental in transforming HP into the world's top computer company by revenue and had overseen acquisitions exceeding $20 billion that expanded HP’s reach into networking and mobile devices. Nevertheless, allegations of inappropriate conduct resulted in his resignation, triggering an 8.4% decline in HP’s stock price and drawing criticism from industry figures such as Larry Ellison regarding the board’s handling of the situation.

Léo Apotheker took over as CEO on September 30, 2010; his appointment attracted criticism due to his prior involvement at SAP during an intellectual property dispute with Oracle involving a subsidiary. Apotheker sought to reposition HP’s focus away from hardware towards more profitable software and service offerings. By August 2011, HP decided to exit smartphone and tablet markets to concentrate on cloud computing and enterprise services while contemplating divesting or spinning off its PC business. This strategy shift coincided with reduced profit margins and waning investor confidence.

HP’s share price dropped further after it unexpectedly discontinued webOS devices and announced plans to sell its personal computer division—the largest globally at the time—and acquired British big data firm Autonomy at a contentious premium of 79%. The Autonomy transaction was scrutinized due to accounting irregularities and internal opposition from HP’s CFO. Analysts characterized these developments as a disorganized strategic pivot that eroded shareholder trust.

On September 22, 2011, Apotheker was dismissed and succeeded by former eBay CEO Meg Whitman, with Raymond J. Lane appointed as executive chairman. Despite his short tenure, Apotheker received compensation exceeding $13 million. Soon thereafter, HP reaffirmed its dedication to the Personal Systems Group after reassessing the PC division’s essential contribution.

On March 21, 2012, HP consolidated its printing and PC units under Todd Bradley’s leadership while printing division head Vyomesh Joshi departed. On May 23, HP announced workforce reductions amounting to roughly 27,000 jobs following a 31% profit drop in Q2 attributed to declining PC sales amid increasing smartphone and tablet adoption.

HP introduced its first net-zero energy data center on May 30, utilizing renewable energy sources to lower operational expenses and environmental footprint.

In July 2012, security flaws were detected in HP’s Server Monitoring Software; patches were promptly released. The following month, hackers compromised HP’s training center website to highlight web security vulnerabilities.

By September 10, 2012, HP updated its restructuring strategy to include cutting approximately 29,000 positions amidst ongoing financial challenges.

In November 2012, HP recorded a nearly $9 billion write-down related to the Autonomy acquisition amid allegations of accounting fraud by Autonomy’s former management and subsequent legal disputes. HP accused previous executives of financial misrepresentation while facing criticism regarding its own post-acquisition oversight shortcomings.

2013–2015

By the close of 2013, HP had eliminated 24,600 positions, with total layoffs reaching 34,000 by October 2014, thereby decreasing its workforce from 317,500 employees. In May 2014, the company revealed plans for an additional reduction of 11,000 to 16,000 jobs to enhance operational efficiency. CEO Meg Whitman highlighted the goal of evolving HP into a more nimble, cost-effective, and customer-centric organization to sustain its competitive edge amid the rapidly shifting IT landscape.

During the HP Discover event in June 2014, Whitman alongside CTO Martin Fink introduced The Machine, a novel computing framework utilizing memristors and silicon photonics. This project accounted for 75% of HP Labs’ research focus and targeted commercialization before the decade concluded, positioning HP as a leader in technological innovation.

On October 6, 2014, HP declared its plan to split into two separate publicly traded entities effective November 1, 2015: Hewlett Packard Enterprise (concentrating on technology services) and HP Inc. (dedicated to personal computers and printing solutions). This restructuring aimed to sharpen market focus and operational clarity. Whitman assumed the role of chairman at HP Inc. and CEO at Hewlett Packard Enterprise; Patricia Russo was named chairman of the enterprise division, while Dion Weisler took over as CEO of HP Inc.

HP unveiled the Sprout personal computer on October 29, 2014, featuring cutting-edge 3-D scanning and mixed reality technologies to broaden its product range.

In May 2015, HP divested its controlling 51% share in its Chinese data-networking business to Tsinghua Unigroup for roughly US$2.4 billion. This move bolstered its collaboration within the Chinese market and optimized global operations.

Facilities

HP’s worldwide operations were coordinated from its headquarters located in Palo Alto, California. Its U.S. activities were managed from a site near Houston, Texas, while Latin American offices operated out of Miami-Dade County, Florida. European functions were headquartered in Meyrin near Geneva, Switzerland, complemented by a research center within the Paris-Saclay innovation cluster south of Paris. The Asia-Pacific region’s offices were situated in Singapore.

Major operational centers included Leixlip, Ireland; Austin, Texas; Boise, Idaho; Corvallis, Oregon; Fort Collins, Colorado; Roseville and San Diego in California; Tulsa, Oklahoma; Vancouver, Washington; Conway, Arkansas; and Plano, Texas. In the United Kingdom, HP maintained a significant facility in Bracknell, Berkshire, along with several other offices including the iconic 88 Wood Street building in London.

Following the acquisition of 3Com, HP expanded its workforce in Marlborough, Massachusetts—where HP Inc. began producing its convertible laptop line by late 2019. The company also upheld substantial back-office and IT operations in Bucharest, Romania and Bangalore, India. The purchase of EDS incorporated Mphasis—headquartered in Bangalore—into HP’s portfolio, enhancing its presence there and supporting its global IT services segment.

Products and organizational structure

HP’s diverse product range encompassed printers, scanners, digital cameras, calculators, personal digital assistants (PDAs), servers, workstations, and computers designed for both home users and small businesses—many integrated through the 2002 Compaq merger. By 2001, HP had positioned itself as a comprehensive provider offering hardware solutions alongside software and IT infrastructure services.

The Imaging and Printing Group (IPG) was recognized as the world’s leading supplier of printing hardware, consumables, and scanning devices across both consumer and enterprise sectors by 2005. Its key offerings included Inkjet and LaserJet printers; Officejet multifunctional devices; Indigo Digital Press systems; HP Photosmart cameras and photo printers; as well as the Snapfish photo sharing platform. On December 23, 2008, HP introduced iPrint Photo for iPhone users to enhance mobile printing functionality.

HP’s Personal Systems Group (PSG) ranked among the top global PC manufacturers by shipment volume and revenue in 2005. PSG handled business and consumer PC lines such as HP Pavilion, Compaq Presario, and VoodooPC; handheld devices like the iPAQ Pocket PC; plus digital entertainment products including HP MediaSmart TVs and servers. The group also maintained a partnership with Apple on iPod products until November 2005.

The Enterprise Business (EB) segment combined HP Technology Services with Enterprise Services (including former EDS), overseeing enterprise security offerings alongside the HP Software Division and the Enterprise Servers, Storage & Networking Group (ESSN). ESSN managed backend infrastructure such as servers and storage solutions while HP Networking (previously ProCurve) was responsible for network hardware product lines.

The HP Software Division concentrated on enterprise software solutions like HP OpenView. Starting from 2005 onward, HP strategically acquired multiple software firms to broaden its portfolio for large-scale corporate clients. Its software suite covered business service management tools, application lifecycle management platforms, mobile applications development frameworks, enterprise security solutions (including ArcSight, Fortify Software, Atalla, TippingPoint), SaaS offerings, cloud computing technologies as well as consulting services.

The Office of Strategy and Technology directed a $3.6 billion research investment budget while fostering a global technical community; it also led corporate strategy initiatives alongside marketing efforts worldwide.

HP Labs operated as the company’s dedicated research arm.

Furthermore, HP delivered managed IT services globally—for instance from its Leixlip campus near Dublin as well as facilities in Sofia and Israel—providing professional desktop support for Microsoft products across EMEA markets covering Windows OS platforms plus Exchange Server, SharePoint services and select Office applications.

Prominent figures

Michael Capellas, the last chairman and CEO of Compaq; served as HP President until November 12, 2002
Barney Oliver, founder and director of HP Labs
Steve Wozniak
Tom Perkins
Carly Fiorina, candidate for the 2016 Republican presidential nomination
Matt Shaheen, executive management consultant at HP Enterprise Services in Plano, Texas; Republican representative in the Texas House of Representatives
Enrique Lores, current president and CEO of HP Inc.

Corporate social responsibility

In July 2007, HP declared it had achieved its 2004 objective of recycling one billion pounds of electronics, toner, and ink cartridges, subsequently setting a new goal to reach two billion pounds by 2010. In 2006 alone, HP recycled 187 million pounds of electronic materials.

The company disclosed supply chain emissions data in 2008 and earned the top spot on Newsweek's 2009 Green Rankings among America's largest firms, credited to its greenhouse gas reduction initiatives and transparency regarding supply chain emissions. In 2010, HP led Corporate Responsibility Magazine's list of the 100 Best Corporate Citizens, excelling in environmental efforts, climate change mitigation, and philanthropic commitments.

Fortune magazine recognized HP as one of the World's Most Admired Companies in 2010, placing it second within the computer industry and 32nd overall. The ranking emphasized HP's social responsibility, long-term investments, global competitiveness, and efficient asset management.

HP's 2010 Global Responsibility report highlighted its worldwide citizenship initiatives and accomplishments, including a 9% decrease in total energy consumption compared to 2008 and the recycling of over 118,000 tonnes of electronic products and supplies during 2009.

In April 2010, Environment California honored HP for incorporating green chemistry principles into its product design process. The following month, HP was named among the World's Most Ethical Companies by the Ethisphere Institute—the sole computer hardware provider to receive this distinction.

Greenpeace ranked HP first in its 2011 Guide to Greener Electronics due to sustainable operations and reductions in supplier greenhouse gas emissions; HP secured second place in the 2012 edition.

The company received accolades for data privacy and security, achieving fourth place in the Ponemon Institute's 2010 survey identifying trusted companies for privacy protection. Since 2006, HP has partnered with U.S. federal agencies to influence privacy legislation and contributed to the Federal Trade Commission’s December 2010 consumer privacy report.

After securing nine consecutive "Most Respected Company in China" awards from the Economic Observer and Peking University, HP China was honored with a "10 Year Contribution" award.

In 2012, the Enough Project ranked HP second among consumer electronics firms for advancements in conflict minerals compliance.

Brand

In 2009, BusinessWeek ranked HP as the world’s eleventh most valuable brand. Following its acquisition of Compaq in 2002, HP continued using the Compaq Presario brand for budget-friendly home desktops and laptops; the HP Compaq brand was maintained for business-oriented desktops and laptops; while Intel-based servers carried the HP ProLiant branding. The HP Pavilion line was aimed at home entertainment laptops and desktops. Servers from Tandem branded "NonStop" were renamed "HP Integrity NonStop."

HP participated in significant sponsorship deals such as supporting Mission: SPACE at Walt Disney World's Epcot. The company served as shirt sponsor for Premier League club Tottenham Hotspur F.C. during two periods: from 1995 to 1999 and again from 2013 to 2014. It also sponsored Australian Football League’s North Melbourne Football Club between 1997 and 1999. In motorsports, HP backed Formula 1 teams including Jordan Grand Prix, Stewart Grand Prix, Jaguar Racing, BMW Williams (previously sponsored by Compaq), and since 2010 has supported Renault F1.

HP held naming rights for the HP Pavilion at San Jose, home arena for the NHL’s San Jose Sharks, until SAP AG acquired those rights and renamed it the SAP Center at San Jose. Additionally, HP maintained corporate sponsorships across various industries, supporting trade organizations such as Fespa (focused on print trade exhibitions) and O’Reilly Media’s Velocity conference centered on web development.

Employee fatality from airplane fall

On December 14, 2000, Elisabeth M. Otto, an HP employee, tragically died after falling from a commuter aircraft shortly after it departed on a routine HP shuttle flight between Roseville and Palo Alto, California. Investigations determined that Otto most likely opened the aircraft door and jumped from an altitude of approximately 2,000 feet. The incident went unreported initially due to passenger shock and ambient noise. Efforts to stop her fall were unsuccessful, and the event was only disclosed by a plane mechanic nearly 40 minutes after the flight had landed.

Financial restatement

In March 2003, HP revised its first-quarter operational cash flow figures downward by 18 percent following the discovery of an accounting mistake. The adjusted cash flow from operations was $647 million, reduced from the originally stated $791 million; $144 million was reclassified as net cash used in investing activities.

Information leak investigation scandal

In 2006, under the leadership of chairwoman Patricia Dunn, HP’s general counsel engaged security specialists to probe board members and journalists suspected of disclosing confidential information about HP’s strategic plans. These investigators employed pretexting techniques—posing as board members and reporters from media outlets such as CNET, The New York Times, and The Wall Street Journal—to obtain telephone records. The leaked data had been published in a January 2006 CNET report. Most employees implicated in this controversy were ultimately cleared of wrongdoing.

Hardware defects

In November 2007, HP issued a BIOS update for numerous laptop models to maintain continuous fan operation as a solution to overheating problems caused by faulty Nvidia GPUs supplied to original equipment manufacturers including HP, Dell, and Apple. The defect originated from Nvidia’s 2007 packaging materials which deteriorated under thermal cycling stress, leading to cracks that interrupted the GPU-to-motherboard connection and resulted in blank display screens.

By July 2008, HP extended its initial one-year warranty to cover motherboard replacements on select models; however, this extension did not apply to all affected units despite evidence indicating widespread defects. This motherboard swap served only as a temporary remedy since the underlying flaw persisted across all devices, including those replaced by HP.

Several online platforms documented this issue extensively, and numerous small-claims lawsuits were filed worldwide. In 2009, HP confronted a class-action lawsuit concerning computers equipped with i7 processors that repeatedly froze soon after startup—a problem that continued even after system replacements.

Legal action against Oracle

HP initiated legal proceedings in California Superior Court accusing Oracle of violating an agreement to support the Itanium microprocessor utilized in HP’s high-end enterprise servers. On June 15, 2011, HP formally demanded Oracle retract its decision to cease software development for Intel Itanium processors and manufacture its own servers. HP prevailed in the lawsuit in 2012, compelling Oracle to maintain production of compatible software. On June 30, 2016, HP was awarded $3 billion in damages after arguing that Oracle’s termination of support damaged HP’s Itanium server business. Oracle declared its intention to appeal both the verdict and the damages awarded.

HP wage and hour lawsuit

On January 12, 2012, multiple class action law firms initiated legal proceedings against HP Inc. and Hewlett Packard Enterprise, accusing them of not compensating California-based sales staff with commissions and incentive pay within the time periods mandated by law. The dispute concluded in 2017 with a $25 million settlement and revisions to HP’s commission payment procedures.

Takeover of Autonomy

In November 2012, HP recorded a significant $8.8 billion impairment charge linked to its acquisition of UK-based Autonomy Corporation PLC in October 2011. HP alleged that Autonomy’s former leadership had artificially inflated the company’s valuation prior to the acquisition, allegations which Autonomy’s executives denied.

At that time, HP was led by CEO Leo Apotheker, who had succeeded Meg Whitman during a phase marked by shrinking profit margins and difficulties breaking into cloud computing and mobile sectors. Apotheker’s approach included purchasing Autonomy for roughly (£7.4 billion), representing a 79% premium over its market value—a move widely criticized as an overpayment and a misguided attempt to redefine HP’s business focus.

Within twelve months, Apotheker was replaced amid internal conflicts and strategic errors, prompting HP to write down most of Autonomy’s recorded value. The company attributed this to "accounting irregularities" committed by Autonomy’s management, who in turn argued that HP’s own poor management and prior awareness of financial concerns contributed to the downfall. Analysts observed that only part of the write-down stemmed from accounting issues, while HP had also significantly overpaid for acquisitions.

Subsequent inquiries were launched by the UK’s Serious Fraud Office (SFO), the U.S. Securities and Exchange Commission (SEC), and the FBI. HP’s share price fell sharply, leading to shareholder lawsuits over the acquisition’s detrimental effect on company value. A 2014 proposed settlement was rejected by a judge amid worries it would protect HP executives from accountability while focusing blame on former Autonomy leaders.

The SFO ended its probe in January 2015 citing insufficient chances for prosecution, though litigation continued in both the United States and United Kingdom. In June 2015, HP agreed to pay $100 million to resolve shareholder claims related to the Autonomy transaction.

Following this settlement, HP pursued legal action against former Autonomy executives in London in 2019 but failed to present definitive proof of fraudulent conduct. Auditors confirmed that no formal conclusion was reached linking discrepancies directly to fraud.

In June 2024, a jury found Autonomy founder Mike Lynch and co-defendant Steve Chamberlain not guilty. Tragically, Chamberlain died in a car accident in August 2024, followed shortly by Lynch’s death by drowning alongside his daughter after their yacht capsized—an incident resulting in seven fatalities.

Israeli settlements

On October 25, 2012, Richard Falk, serving as the United Nations Human Rights Council’s Special Rapporteur on human rights within the Palestinian territories occupied since 1967, urged a boycott of HP and other companies benefiting from Israeli settlement activities on occupied Palestinian land until they adhered to international human rights standards. In 2014, the Presbyterian Church (USA) resolved to divest from HP as a form of pressure on Israel concerning its policies toward Palestinians. The following year, Portland, Oregon's Human Rights Commission recommended adding HP—alongside Caterpillar, G4S, and Motorola Solutions—to the city’s "Do Not Buy" procurement list.

Bribery

On April 9, 2014, HP resolved an SEC administrative action by admitting to breaches of the Foreign Corrupt Practices Act (FCPA) linked to its subsidiaries in Russia, Poland, and Mexico, which involved illicit payments to government officials aimed at securing public contracts. The SEC determined that HP's Russian branch disbursed over via intermediaries and shell entities to maintain a contract with the federal prosecutor’s office; in Poland, gifts and bribes exceeding were given to a government official to obtain contracts with the national police force; and in Mexico, more than in inflated commissions were paid to a consultant associated with company personnel to facilitate a software sale. HP consented to pay to resolve both SEC allegations and a related criminal investigation.

External links