Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Subscribe
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Subscribe
    Home Latest News
    • Mobile
    • PC Hardware

    HPs Two-Tone Retail Stylings

    Written by

    Rob Enderle
    Published December 11, 2003
    Share
    Facebook
    Twitter
    Linkedin

      eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

      Recent reports from financial analysts and feedback from large enterprises agree: Dell and Hewlett-Packard currently top the heap in mobile sales, despite their very different routes to that position.

      Outside the enterprise, Dell and HP have pursued distinct sales channels. Dell mostly sells direct (notwithstanding some localized efforts, such as mall kiosks and placement in membership stores like Costco). HP has a direct presence but is better-known for its retail efforts; currently, its the most powerful PC vendor in retail.

      But when it comes to retail, HP is actually two vendors in one. Much like General Motors does with cars, HP has two complete desktop lines: the HP Pavilion and the Compaq Presario. Whats HP up to? When you to go to a store like Best Buy that segments products by line, you might see an area dedicated to Sony, an area dedicated to HP—and another area dedicated to Compaq. That gives HP twice the shelf space and twice the opportunity to capture revenue. I think this multi-brand strategy is behind recent sales numbers that show HP growing substantially faster than both the market and Dell.

      The differences between the HP and Compaq brands dont stop there, of course. While there was initially a lot of overlap between the Pavilion and Presario products, HP is slowly moving the lines away from each other. The HP Pavilion line is more of a packaged offering, particularly in consumer product sets, with a warmer industrial design.

      Compaq is more basic, with sharp lines that identify a more crisp and technology-oriented nature. Personally I like the Compaq line better because it has a very high-tech look with which I identify. This is by design, much like it is with Buick and Chevrolet; these products (which are almost identical inside) are supposed to target a specific audience that may be buying from Dell, Toshiba, Sony or Apple today. It looks to me like HP Pavilion is targeting Apple, Sony and Toshiba, while the Compaq Presario is targeting Dell Dimension, Gateway and Acer.

      As time goes on, youll see these lines move further and further apart. If HP is pushing performance and value, it will likely be in the Compaq line (I expect the Presario brand, which seems redundant to me at this point, will fade over time); while features and advanced capabilities will fall in the Pavilion line. For instance, on the desktop side, the new “X” product, which is positioned against the Dell XPS and products from companies like AlienWare and Falcon, will be branded Compaq, much like Corvette is a Chevrolet brand. The HP Pavilion, much like Buick, may never have a product in this space. HP does have a Cadillac line, currently populated with its Media Center products, which may expand over time (this is still somewhat confusing because the Media Center laptops are part of the HP Pavilion notebook line, but the desktops are in the Media Center line. I expect this will get fixed next year.)

      The battle between HP and Dell will be particularly interesting to watch because it seems to parallel the battle between Ford and GM. In that battle Ford eventually had to acquire other brands or face being trivialized in the market, and GM has had serious problems with husbanding the brands while creating a balance between differentiation and common parts. Like Ford and GM, I expect both Dell and HP are in for a similar learning experience, and as we go through the maturing of this market, like it was with the car market, it will be interesting to see how many independent U.S. domestic brands we have in a few short years.

      Rob Enderle is the principal analyst for the Enderle Group, a company specializing in emerging personal technology.

      Rob Enderle
      Rob Enderle
      https://enderlegroup.com
      Rob Enderle is a principal at Enderle Group. He is a nationally recognized analyst and a longtime writer for eWEEK and Pund-IT. Enderle is considered one of the top 10 IT analysts in the world by Apollo Research, which evaluated 3,960 technology analysts and their individual press coverage metrics.
      Twitter

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      MOST POPULAR ARTICLES

      Artificial Intelligence

      9 Best AI 3D Generators You Need...

      Sam Rinko - June 25, 2024 0
      AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
      Read more
      Cloud

      RingCentral Expands Its Collaboration Platform

      Zeus Kerravala - November 22, 2023 0
      RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
      Read more
      Artificial Intelligence

      8 Best AI Data Analytics Software &...

      Aminu Abdullahi - January 18, 2024 0
      Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
      Read more
      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Video

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2024 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.