Packard Bell

Two different consumer electronics companies have used the Packard Bell name. The first was an American radio manufacturer founded in 1926,^[1][2] that later became a defense contractor and manufacturer of other consumer electronics, such as television sets. The company was acquired in 1968 by Teledyne, which eventually merged with Nippon Electric Company (NEC) in the 1990s. The second and current company is a personal computer manufacturer, formed when investors bought the Packard Bell name in 1986.

The original Packard Bell

Packard Bell was founded in 1926 as a maker of consumer radios. It later found success in the military electronics industry. and the television market[5]. It also manufactured some of the earliest computers, the most famous of which, the PB 250 released in 1961, was one of the last users of magnetostrictive delay lines as part of its memory. It was also the last machine to be partially based on the original designs of Alan Turing’s NPL Pilot ACE computer. A Packard Bell radio was used as prop in the long-airing Gilligan's Island television show. The modified AR-851 model (antenna and handle added by the prop department), was an important plot device over the course of the three year run of the show.

Packard Bell BV

In 1986, Beny Alagem and a group of Israeli investors bought the Packard Bell name from Teledyne ^[3] and resurrected it as a manufacturer of low-cost personal computers. The computers, among the first IBM PC compatibles sold in retail consumer electronics chains — such as Sears — soon became popular. They also became known for poor quality control. In addition, Packard Bell frequently used motherboards and power supplies in unusual form factors (such as Intel's LPX form factor) that made replacement parts difficult or impossible to find. Packard Bell's old slogan, "America grew up listening to us. It still does", may have facilitated the confusion^[4]. The company also sold nearly identical systems under different names, making comparison difficult. One out of six Packard Bell machines sold at retail was returned, a rate double the industry average.[6]. In 1995 Compaq sued Packard Bell for not disclosing that Packard Bell computers incorporated previously owned parts, a practice still widespread in the computer industry (as Compaq also noted in its suit that it also practiced this, but disclosed it in the warranty statement) [7]. The company was sued several times and paid millions of dollars in settlements. PC World ranked Packard Bell computers of 1986–1996 as the worst PCs of all time, [8] and frustrated users often refer to them as "Packaged Hell",^[5][6]and have even gleefully disposed of irreparable machines with high-powered firearms.^[7] In 1995, Packard Bell acquired Zenith Data Systems from Groupe Bull in a deal which saw Groupe Bull and NEC taking a larger stake in Packard Bell [9] to create a $4.5 billion company. The company now became integrated with NEC Computers. Its 15% market share made it the largest PC manufacturer, in terms of units shipped, in the United States. However, Compaq overtook it in retail sales in mid-1996 and cemented its lead the next year with the release of a $999 PC in March 1997. Packard Bell posted losses totaling more than $1 billion in 1997 and 1998. In the U.S., price pressure from Compaq and, later, eMachines, along with continued poor showings in consumer satisfaction surveys made it difficult for the company to remain profitable and led to Alagem's departure in 1998. In 1999, NEC began withdrawing the Packard Bell name from the U.S. market, while keeping it in Europe, where the brand was untainted by allegations of shoddy quality.[10]

Rebuilding the brand in Europe

While Packard Bell vanished from the U.S. market in 2000, it continues to be a popular brand in Europe as Packard Bell Europe (PBE) and holds third place in terms of consumer sales.^[8] They have also entered the MP3 business and produced a MP3/WMA player called the "AudioDream". In 2004, Packard Bell changed their logo and began manufacturing media products for television and wireless networking. Packard Bell also sells accessories and has started operating in other continents. In September 2006, Packard Bell was bought by John Hui, the former owner of eMachines who sold eMachines to Gateway on January 30, 2004. Now known as Packard Bell BV, the company has relocated to Nijmegen. In August 2007 Chinese PC manufacturer Lenovo confirmed its interest in acquiring Packard Bell in a move to expand its market into Europe.^[9] In August 2007 Acer/Gateway was rumored to be looking to buy Packard Bell. ^[10] The rumor was confirmed in October 2007 when Gateway announced that it had acquired a controlling interest in the parent company of Packard Bell.^[11]

Notes and references

External links

• Packard Bell Official Site
• Support information on old Packard Bell motherboards
• Packard Bell Sells More PCs In The U.S. Than Anyone. So Just Who Are These Guys? 1995 Fortune article