The first breakthrough
Bill and Dave believed in making products that would make a difference for their customers. They found their stride with a device to measure sound frequencies: the resistance-tuned audio oscillator, which spawned HP’s first product line.
In Professor Terman’s laboratory at Stanford, Bill had done graduate work on applying the new concept of “negative feedback” to an audio oscillator (a test instrument used to generate frequencies).
Bill had the innovative, elegant and practical idea to add a small light bulb to act as a negative feedback element in the oscillator circuit. This solved the problem of how to regulate the output of the circuit without causing distortion.
Together in the garage, Bill and Dave produced the Model 200A audio oscillator (a name they thought would make them look like an established company with a robust product line).
The 200A was the first practical, low-cost method of generating high-quality frequencies. Other oscillators available at that time were costly–around $500–and unstable. By the clever use of the light bulb, Bill was able to simplify the circuit, improve the oscillator’s performance and reduce the price to just under $55–considerably less than competitive equipment.
Sound engineers used audio oscillators to test audio frequencies, and the HP 200A caught the eye of an engineer with Walt Disney Studios.
After making some modifications to the original design–thus creating their second product–Bill and Dave sold eight Model 200B oscillators to Disney, which needed new ways to monitor sound for its landmark movie Fantasia, to be released in 1940.
Flush with their success, the two men pooled their resources of cash and equipment (to a grand total of $538) and formalized their partnership on January 1, 1939, deciding the company name — Hewlett-Packard Company — on a coin toss.
For the next year, Bill and Dave worked together until, with the addition of two employees, they finally outgrew the cramped garage and moved to new headquarters on Palo Alto’s Page Mill Road in 1940. Dave and Lucile, who were expecting their first child, moved to a house in another neighborhood
The garage today
After the Packards left, the house at 367 Addison was eventually subdivided and changed hands several times. In the early 1980s, after a series of owners and various house remodels, a group of Palo Alto citizens, HP employees and company management worked together to protect the garage and give it landmark status.
In 1987 the garage was registered as California Historical Landmark No. 976 and officially declared the “Birthplace of Silicon Valley.”
HP acquired the property in 2000 and later launched a full-scale preservation effort to save the aging structure and preserve it for future generations.
Although the garage isn’t open for public tours, anyone is welcome to stop by and view it from the street–and imagine Bill and Dave there, tinkering and inventing late into the night.