Have you seen the news?  HP is buying Compaq for $25 billion, according to this News.com article:
http://news.cnet.com/news/0-1003-200-7046410.html?tag=tp_pr

I have to say I’m a little surprised.  I knew the tech industry was not doing well, but I didn’t realize that the comapanies of Compaq’s size and age were at risk of being bought out.

What does this mean for Apple?  On one hand it’s the elimination of one competitor, but at the same time it means a larger competitor in HP.

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David Nelson
Mac Observer Forum Mod

<font size=-1>[ This Message was edited by: David Nelson on 2001-09-04 01:35 ]</font>

I wouldn’t be worried about it. As far as I am concerned this will change very little for Apple in the long run. A bigger competitor isn’t necessarily a better competitor (witness IBM, who’s desktop business isn’t doing so hot). I doubt that this consolidation will push margins up or prices down any more than the current situation will, so Apple hasn’t much to worry about there. If anything, less competition will only serve to push prices up and that might help Apple. And as far as product lineup goes, both HP and Compaq have shown little deviation from the standard box containing off the shelf components one their own, so I doubt we’ll see much when they’re acting together. I think the only difference we’ll see is HP’s where we used to see Compaqs.

What I do see though, is HP starting to put a lot more pressure on IBM and Dell in the server space. That might mess up some of Steve’s extreme long term plans, but we’ll see about that when the time comes. As for the desktop, I don’t see much changing.

HP & Compaq are both huge in the business workstation market…note HP UX and Compaq’s Alpha. It makes sense.  Now if IBM showed faith in Gateway, that would be a blow to Apple.  Or maybe Dell and Gateway.  But IBM is more likely to want Dell as a partner.

Silly Question! Why would the Compaq/HP merger have ANY negative effect on Apple?

HP makes GREAT printers! Compaq combines a standard kit of generic parts into typical PC’s.

As long as HPaq keeps supporting the Mac and churns out superior printers, who cares?

One more thing…

If ANYone has to worry about this merger, it’s our good buddy Michael Dell, box-stuffer ordinaire.

HP and Compaq PC boxes are BOTH superior to Dells. So this merger with add to HPaq’s already weighty clout in the PC corporate workstation biz.

Maybe we should all chip in and send Mikey D a box of new BVD’s. He’s probably due for a change about now.

On second thought… just send a case of Depends!

My hope is they come up with a combined name that is shorter. How about HewPaq?

As for a threat, no. Apple has always been their own worst enemy. It comes from being in a class by yourself.

My only concern would be for HP and Compaq employees, and their customers.  Certainly, those being fitted for their ‘golden parachutes’ will do all right.  If the trust-busters don’t object, this merger should stifle any innovation.

A better name would be Hewlett Paqard

I say they call the new company “McDonald’s”.

What, that’s been taken already?

My understanding was that it was a buy out??? Not a Merger.  Does anyone know?  Typically when a company buys out another they normally don’t change the name.  Well I personally think it will have no effect on Apple.  Dell will be the most effected.  I am actually quite pleased with the event.  -Britton

Apple did a very smart thing last week and launched an online store dedicated to Republic of Ireland customers.  Firstly this makes sense as Dell who are based in Limerick,Ireland bombard the Irish public through the media with their special offers.  My partner who is in business and is a PC user constantly recieves faxes and mailed leaflets at least once a week.  This drives herself and myself crazy because along with all the other spam we recieve this is contributing to the waste of good paper.

The UK site offered to Irish customers was not an option as it was easier to go to a re-seller to get good service. Altough this will put preassure on these re-sellers (A friend of mine works for one of them here) it will create some competition in the Apple market here.

This bring me to the second point. The cost of stuff here is outrageous.
Well in January 2002 we go Euro and hopefully this will kick ass with our prices.  You won’t believe this but if you want to buy a motor here you pay nearly twice as much as you would on the continent.  This is due to VRT ( vehicle registration Tax) imposed by the Irish Government and it is ilegal under E.U. law.  And yes we want cheaper food, consumables and computers etc.

That was me on the last post The internet is great. You can have a good anonymous rant after work.

This sucks, at most retail outlets HP and Compaq are the only two “real” computer companies that are displayed. Now there will only be one. Not good for the consumer. Let’s see, buy an HP, or make due with a crappy eMachines or Micron PC.

I’d been at Digital Equipment (DEC) for a little over a year when Compaq bought DEC for a little over US$9B. Compaq had previously bought Tandem. Think of the differences in corporate culture and history: DEC in MA, a long-time No. 2 to IBM in the pre-PC world (and like Xerox, developer of great technology that no one had a clue how to market effectively); Compaq in TX, an IBM clone vendor that got lucky; Tandem in CA (Cupertino), a maker of mainframe-class high-availability systems—and the huge effort required to integrate them. Although HP-Compaq may look like a done deal, even if the EU approves it, there are HUGE challenges (including what to do with their overlapping lines of business). I still have friends who work at Compaq. I currently work at a large firm (once all-Mac for desktops and notebooks, now sadly all-PC) that in 1998 bought another large firm in the same business, and the integration of the two hasn’t gone as smoothly as could be hoped for. What does this have to do with Apple? Don’t forget who turned down Woz’s design for a personal computer: his then-employer, HP.

On 2001-09-04 15:37, Anonymous wrote:
Although HP-Compaq may look like a done deal, even if the EU approves it,

This is an honest question, not something xenophobic nor flamebait:

Why does the EU’s approval or disapproval have anything to do with a merger between to US companies?

Now, if the EU decides that they need to sell off assets in Europe (for some monopolistic/regulatory reason, or because they didn’t bribe the appropriate EU ministers, or whatever), that’s one thing. But does the EU really have the ability to be a showstopper? If so, why? How would the EU react if the US tried to stop, say, Daimler from buying Fiat?

On 2001-09-04 10:00, Anonymous wrote:
HP & Compaq are both huge in the business workstation market…note HP UX and Compaq’s Alpha. It makes sense.  Now if IBM showed faith in Gateway, that would be a blow to Apple.  Or maybe Dell and Gateway.  But IBM is more likely to want Dell as a partner.

I dont think that IBM would do this because they make Apple’s chips. (FYI). IBM is primarly a research company. Have you ever looked at the number of patents they have?!? Joining with any company would lower IBM. I dont think IBM will “merge” with anyone.