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http://www.insanely-great.com/news.php?id=1751

HP's New Branding: Compaq = Cheap and Nasty as Dell, HP = Apple
By Remy Davison, Insanely Great Mac
February 26th 2003

HP positions itself to go after Apple, Sony.

Hewlett-Packard is planning a marketing assault which will further distinguish its HP 
and Compaq brands. HP plans to target Apple's multimedia market with its Media PCs, 
while its Compaq logo will be dedicated to the low end of the market, aiming squarely 
at Dell.

"One is going after Sony and Apple (Computer), and the other is going after Dell 
(Computer)," said Jim McDonnell, vice president of marketing in the personal systems 
group at HP, who is quoted in a c|net Asia article.

The company will market HP as a 'premium' brand, employing MS's Windows XP Media 
Center OS. Features will include the ability to record TV shows and showing digital 
photos on a TV. HP has said that it has sold all the Media Center PCs it has built, 
but would not provide precise sales figures.

HP plans to equip its Media Centers with large hard drives and, in some cases, a DVD 
recorder. HP laptops are also expected to ship with Media Center features.

Like most other manufacturers, HP is predicting that DVD recorders will be the hot 
ticket item on most PCs by the end of the year.

By contrast, Compaq will be a 'value-for-money' brand, which will compete with Dell 
primarily.

HP saw substantial falls in sales in the most recent quarter. The company recorded a 
profit, announced Tuesday, but failed to meet analysts' expectations. HP's total sales 
fell $1.2 billion from the year-ago quarter.

Analysis: Without being complacent, we think HP are going to be at least a year too 
late with this, even though DVD+RW is beginning to gather some critical mass. Aside 
from the iBook, there is no Mac you can't buy a DVD-R drive with (yes, I'm excluding 
the old CRT iMac). It's also unlikely that Windows PCs will develop the kind of 
software integration and ease-of-use associated with iDVD, iMovie, iTunes and iPhoto. 

HP cites the success of its relatively early inclusion of CDRWs in its range as one 
reason for getting behind DVD burners. Music's one thing; video is another. From a 
(very) unscientific straw poll of Mac and PC users, early adopters have already got 
their DVD burner (SuperDrive or kit). They want it, they use it. DV cams are still not 
exactly everyone's toy. And would you hook your PC up to the VCR to capture programs? 
My (ancient) Power Mac 8100AV has a video capture card, but I wouldn't drag anything 
but my PowerBook to the VCR to capture video (which I do). 

We'll concede there's one very good idea here: I'd really like to see Apple include 
TV/VCR capture on every Mac it produces. We have every possible way of outputting 
video, and FireWire for DV capture, but it'd be a v-e-r-y useful thing to be able to 
slam in an RCA or S-video cable into the back of the PowerBook/iBook and record 
anything. Maybe even a hardware MPEG-1/MPEG-2 encoder. After all, CaptyDVDworks even 
with G3 Macs, so the iBook needn't be excluded.

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