An Assessment of Hewlett-Packard One Year After the Merger (3Q03)

July, 2003


A year after HP’s acquisition of Compaq, some of the consequences of the merger are beginning to become apparent. HP’s sales during 2002 were a credible threat to IBM’s dominance of the market, but HP lags far behind in profit margin. Part of the reason for HP’s poorer profitability is tied to difficulties in aligning products and personnel.