# Compaq Computers: Rod Canion

- Show: [How I Built This](https://hardwarepodcasts.com/podcast/how-i-built-this)
- Published: 2017-05-22
- Length: 38m
- Page: https://hardwarepodcasts.com/podcast/how-i-built-this/2017-05-22-compaq-computers-rod-canion

## Summary

Rod Canion, who co-founded Compaq with Jim Harris and Bill Murto, explains how they reverse-engineered the IBM PC to create the first portable IBM-compatible computer, the Compaq Portable. Canion details the strategic decision to reverse-engineer the ROM legally, the rapid prototyping process that resulted in a rugged 28-pound device, and the pivotal moment when IBM launched its own portable, causing Compaq's orders to vanish. He describes the high-stakes gamble of continuing production and storing inventory in trailers, betting that IBM's product would be delayed or inferior, a strategy that ultimately allowed Compaq to outsell IBM's portable and establish the IBM-compatible PC standard.

## Chapters

- [0:00](https://hardwarepodcasts.com/podcast/how-i-built-this/2017-05-22-compaq-computers-rod-canion#t=0) Introduction: Rod Canion and Compaq's Origin
- [2:35](https://hardwarepodcasts.com/podcast/how-i-built-this/2017-05-22-compaq-computers-rod-canion#t=155) Leaving Texas Instruments and Forming Compaq
- [4:27](https://hardwarepodcasts.com/podcast/how-i-built-this/2017-05-22-compaq-computers-rod-canion#t=267) The Idea: Portable IBM-Compatible Computer
- [7:56](https://hardwarepodcasts.com/podcast/how-i-built-this/2017-05-22-compaq-computers-rod-canion#t=476) Reverse Engineering and Prototyping the Compaq Portable
- [10:27](https://hardwarepodcasts.com/podcast/how-i-built-this/2017-05-22-compaq-computers-rod-canion#t=627) Manufacturing and Dealer Sales Strategy
- [13:09](https://hardwarepodcasts.com/podcast/how-i-built-this/2017-05-22-compaq-computers-rod-canion#t=789) Legal Strategy: Reverse Engineering the ROM
- [15:38](https://hardwarepodcasts.com/podcast/how-i-built-this/2017-05-22-compaq-computers-rod-canion#t=938) IBM's Portable Launch and the Order Crisis
- [18:22](https://hardwarepodcasts.com/podcast/how-i-built-this/2017-05-22-compaq-computers-rod-canion#t=1102) The Trailer Gamble: Storing Inventory
- [21:28](https://hardwarepodcasts.com/podcast/how-i-built-this/2017-05-22-compaq-computers-rod-canion#t=1288) Outselling IBM and Establishing the Standard
- [25:53](https://hardwarepodcasts.com/podcast/how-i-built-this/2017-05-22-compaq-computers-rod-canion#t=1553) Personal Stress, Divorce, and Being Ousted
- [32:43](https://hardwarepodcasts.com/podcast/how-i-built-this/2017-05-22-compaq-computers-rod-canion#t=1963) Compaq's Merger with HP and Legacy

## Topics

- [Starting a product company](https://hardwarepodcasts.com/topic/starting-a-company)
- [Mechanical engineering](https://hardwarepodcasts.com/topic/mechanical-engineering)
- [Intellectual property](https://hardwarepodcasts.com/topic/intellectual-property)
- [Scaling production](https://hardwarepodcasts.com/topic/scaling-production)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Leadership, teams & culture](https://hardwarepodcasts.com/topic/leadership-and-culture)

## Most relevant to

early-stage companies

## Mentioned

- Compaq (company)
- IBM (company)
- Texas Instruments (company)
- Kleiner Perkins (company)
- Osborne (product)
- Compaq Portable (product)
- IBM PC (product)
- IBM Portable (product)
- PS2 (product)
- Apt App (product)

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- [S4E48 Paul McEnroe | Inventing the Barcode (UPC) & Scanner](https://hardwarepodcasts.com/podcast/being-an-engineer/2023-12-15-s4e48-paul-mcenroe-inventing-the-barcode-upc-scanner) (Being an Engineer)
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- [Ep. 26 | Microchip's Steve Sanghi on How to Bring a Company from Debt to Billions](https://hardwarepodcasts.com/podcast/moores-lobby/2021-06-08-ep-26-microchips-steve-sanghi-on-how-to-bring-a-company-from-debt-to-billions) (Moore's Lobby)

## Citing this page

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