The first Compaq computer was its eponymous Compaq Portable. It was a suitcase-sized clone of the original IBM Personal Computer, with an Intel 8088 CPU running at 4.77 MHz running Microsoft MS-DOS. It was hardly the first non-IBM computer to run MS-DOS, but it was the first legal IBM PC clone with a high degree of compatibility.
Compaq announced it in November 1982 and shipped the first unit in March 1983. It originally cost $2995 for a single-drive unit. A dual-drive unit, which was much more useful, cost $3,590.
The first Compaq Computer
The Compaq Portable wasn’t very portable by today’s standards. It was the size of a suitcase and it weighed 28 pounds. But you could pack up and move it a lot faster than an IBM PC. In the days before laptops and LCD screens, the Compaq Portable was as portable as you could get.
Portable suitcase-sized computers existed before Compaq, but Compaq was the first to make a suitcase-sized computer that was compatible with the IBM PC.
What “Compaq” meant
The name “Compaq” allegedly meant Compatibility and quality. It also resembled the word “compact” but may or may not have been a play on that word. In time, Compaq also made desktop computers, but even in the 1990s, I had to remind people of that. Many people thought Compaq only made portables.
Compaq’s Deskpro 386, announced in September 1986, was the beginning of the end of IBM’s leadership in the PC market. From 1986 onward the industry followed Compaq, not IBM.
When it came to quality, Compaq meant it. In the early 1990s, I worked on a lot of Compaq Portables. I never had to fix one. I would install upgrades in them to make them useful past their point of obsolescence. By the time I was working on them, they were well over 10 years old. Y2K did them in more than anything, because it provided a convenient excuse to replace the old beasts with something newer.
Compaq’s strategy and philosophy
IBM built the IBM PC with off-the-shelf chips and other parts, so Compaq could just buy the same chips. Compaq could license MS-DOS from Microsoft. The only thing Compaq couldn’t buy was IBM’s BIOS, a ROM chip that many programs relied on. Compaq had to clone the BIOS. To do this, they treated the BIOS as a black box, entering every possible value, observing the output, and writing code that behaved identically. Programmers who had seen IBM’s BIOS code couldn’t work on Compaq’s BIOS.
The result: Essentially 100% compatibility. It sold a relatively modest 53,000 units in 1983. More importantly, it was profitable. It took nearly 4 1/2 years for Compaq to sell 1 million computers, but the company set industry records for profits in each of its first three years. Profits matter a bit more than sales, as Commodore can attest.
Compaq thrived through the early 1990s, but stumbled late in the decade with its acquisition of Digital Equipment Corporation. Ultimately this acquisition made Compaq vulnerable as well, leading to it becoming an acquisition target itself. Today, the once mighty upstart that took on IBM and became the darling of the industry is little more than a memory.