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  1. #1
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    Default HP to Get Out of the PC Business? Discussion

    Yesterday, HP shocked the Internet with a couple of surprising new announcements. It had been rumored that the TouchPad and Pre 3 mobile devices had encountered surprising resistance, with Best Buy reportedly asking the company to take back 200,000 unsold units. Ridding itself of its PC business, though? No one saw that coming.

    Read the full content of this Article: HP to Get Out of the PC Business?

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    Default Re: HP to Get Out of the PC Business? Discussion

    The PC business spin-off has been rumored for weeks but formally announcing the PC spin-off in the same press release as the WebOS and Touchpad kill-off, that's the biggest Google Page Ranking mistake in recent years. Since there's currently a $99 firesale on the Touchpad, people are asking when there will be a firesale on HP notebooks and desktops? Who can blame them?

    Personally, I think that the announcement has damaged HP in terms of both investor relations and the potential value of the PC spin-off. This is a disaster, and I don't believe that HP can execute the same sort of transformation as IBM.

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    Default Re: HP to Get Out of the PC Business? Discussion

    There's a right way and a wrong way to handle a corporate restructuring. HP needed a corporate restructuring, narrowing of their portfolio (better to do a half-dozen things really well than to do everything a little poorly), and some reinvestment in build quality, but this could have been a good thing for them. The way they're handling it, though, with inconsistent announcement and rumors and now fire-sales of newly-released products...I'll be surprised if they survive at all. This is NOT how you do it.
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    Default Re: HP to Get Out of the PC Business? Discussion

    Getting out of the phone and tablet market was a good idea IMO, I don't see how HP could have competed there effectively (as in, gained any real market share). Get on the Android or Apple boat; you can't take a slice of pie that doesn't exist. WebOS might be cool but the fact is so few people used it - it was a failure for Palm.

    HP has somewhat of a history of buying companies and then going "Oh, we bought this company thinking we could do something, now we don't feel like it so uh, we're just going to assimilate them into our company and put it behind us". Anyone remember the Voodoo PC takeover? Yeah that worked real well ... not a trace of that company left at HP now. There wasn't one even a year after the purchase was completed. Same exact thing with Palm (except it was worse with Voodoo PC since HP ruined a perfectly good company).

    From a business perspective, it seems that HP is saying no to a war of attrition with Apple and Google and going the IBM route. Sounds good to me.

    But then onto the topic of selling their PC business - what!? Whole different ballgame there, I think it's going to hurt them in the long run. HP has the best quality lineup of any notebook manufacturer, especially on the consumer side.
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    Default Re: HP to Get Out of the PC Business? Discussion

    Quote Originally Posted by linuxwanabe View Post
    The PC business spin-off has been rumored for weeks but formally announcing the PC spin-off in the same press release as the WebOS and Touchpad kill-off, that's the biggest Google Page Ranking mistake in recent years. Since there's currently a $99 firesale on the Touchpad, people are asking when there will be a firesale on HP notebooks and desktops? Who can blame them?

    Personally, I think that the announcement has damaged HP in terms of both investor relations and the potential value of the PC spin-off. This is a disaster, and I don't believe that HP can execute the same sort of transformation as IBM.
    You sound like all of the wall street analysts I saw on TV shows Friday. No one seemed to think that HP either handled the news correctly or is implementing a successful strategy here.

    Stock price dropped big on Friday, on top of other recent drops.

    What I wonder is how much Dell and Lenovo (and other?) manufacturers will see increased sales.

    Best one-liner on this was a supposed Michael Dell tweet, something to the effect of "If HP peels off computers, will they name the new company Compaq?"


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    Default Re: HP to Get Out of the PC Business? Discussion

    Quote Originally Posted by AMATX View Post
    Best one-liner on this was a supposed Michael Dell tweet, something to the effect of "If HP peels off computers, will they name the new company Compaq?"

    They were saying the same thing on Tech News Today yesterday.
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    Default Re: HP to Get Out of the PC Business? Discussion

    Quote Originally Posted by AMATX View Post
    You sound like all of the wall street analysts I saw on TV shows Friday. No one seemed to think that HP either handled the news correctly or is implementing a successful strategy here.

    Stock price dropped big on Friday, on top of other recent drops.

    What I wonder is how much Dell and Lenovo (and other?) manufacturers will see increased sales.

    Best one-liner on this was a supposed Michael Dell tweet, something to the effect of "If HP peels off computers, will they name the new company Compaq?"

    Lol I bet Dell must be having such a field day right now. The problem I see with HP is that there're simply too many product lines at any given time with one model barely distinguishable from another and their naming scheme is a mess. Dell learned their lesson by consolidating and categorising their product lines into as few groupings as possible i.e. Inspiron, XPS, Vostro, Latitude etc. If you're budget-conscious, Inspiron's the likely choice; for power your go for XPS or Alienware or whatnot.... This makes it much easier and hassle-free, from the buyer's standpoint, to have a more informed idea of what you wanna get that can best suit your particular needs.

    From my own experience, I found HP's post-sale service as severely lacking compared to Dell...maybe I'd been lucky that Dell had always come through, and the one HP laptop that I'd owned and my experience with their customer service were all sorts of nightmare. While many people may have misgivings about Dell's quality be it their products or customer service, the same can be said about HP, or Acer, or Asus. For me, whenever I need a new computer I'd look at Dell first.

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    Default Re: HP to Get Out of the PC Business? Discussion

    Quote Originally Posted by AMATX View Post
    You sound like all of the wall street analysts I saw on TV shows Friday. No one seemed to think that HP either handled the news correctly or is implementing a successful strategy here.

    Stock price dropped big on Friday, on top of other recent drops.

    What I wonder is how much Dell and Lenovo (and other?) manufacturers will see increased sales.

    Best one-liner on this was a supposed Michael Dell tweet, something to the effect of "If HP peels off computers, will they name the new company Compaq?"

    I'm not sure that this is good news for any Windows PC manufacturer, or for Microsoft itself. If the #1 seller of Windows PCs is leaving the business because it can't make enough money to make it all worthwhile, what does that say about the other players? It indicates that HP looked at the prospects of PC sales and profit margines with the Windows 8 launch coming up in the spring of 2012 and decided that there wasn't a future in selling Windows PCs. Bad news for HP but worse news for Microsoft and all of the other PC brands, and by extension, even the ODMs.

    Michael Dell doesn't have any spectacular results to show, but he has stuck with the core business and has even made moves to shore up profit margins. Not that there's any signs of a potentially successful post-PC business model at Dell.

  9. #9
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    Default Re: HP to Get Out of the PC Business? Discussion

    I remember a time where there were no big companies other than IBM, Wang Labs, NCR and a few others making PC's in the mid to late 80's. Today there are way too many PC makers who have just lowered profit margins to where it's not worth it even for the Big guys.

    Back then you built your own PC and bought the best parts available. I still do that today. I don't buy pre-built desktops from anyone.

    I wouldn't say this is the last exit. It could also be Dell and a few others only to be gobbled up by the Asian PC makers like Lenovo and Toshiba.

    Still PC's will be around for a long time. Not so much for the consumer but for businesses.

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    Default Re: HP to Get Out of the PC Business? Discussion

    Quote Originally Posted by linuxwanabe View Post
    I'm not sure that this is good news for any Windows PC manufacturer, or for Microsoft itself. If the #1 seller of Windows PCs is leaving the business because it can't make enough money to make it all worthwhile, what does that say about the other players?
    (Sorry this is so long. I feel passionately about this issue. Perhaps it should be moved to an Apple-centric news thread, but only mods can do that. In any event, this post flows directly from HP's moves last Friday.)

    I concur 100% (with the above-quoted post), but would add what I think follows, ominously, from this analysis: The Big Winner From This Will Be Apple.

    When HP - and other computer makers - speak of "tablets" taking away their market share, they mean "IPADS," as these make up nearly 90% of the tablet market. And though they have not said this, nor have any other PC makers - yet - the newest MB Airs and the expected MB Pros to soon follow are spooking the market even more than the iPad.

    It is abundantly clear that Apple is adjusting their strategy from making excellent products for which they charge a huge premium and make a lot of money with a 10% market share, to using price, quality and brand cache to go for Volume, seeking market shares of 25% to 75% (the current iPhone and iPad respectively, are even higher than those numbers) in every market segment they go into. With the exit of HP, the increasing weakness of all PC and tablet competitors, who find it increasingly tough to compete on price because they lack the financial capacity to do the necessary R&D and endure short term losses to compete and maintain their market share against the Apple juggernaut, I think Apple is going from 11% presently to 25-30% of the laptop market within 3-5 years.

    All of this depresses me greatly. First, I detest Apple's deplorable corporate conduct - squeezing suppliers, dealing with suppliers who exploit child labor, top executives publicly dissing competitors, petty bickering with companies like Adobe due to Jobs' personal grudge against Adobe's CEO. Second, I personally dislike OSX. and I believe that Apple will ultimately go back to making its products run poorly, if at all, on any other operating system, because it's clear strategy is to get your credit card number and give you one-click purchasing of hardware, software, music, movies, games, "apps," and ultimately perhaps even non-electronic products. This strategy is greatly aided by forcing customers to use their "ecosphere" - OSX/IOS/iTunes, which will soon meld into one unified OS, to the exclusion of all others. Purchase a Mac PC lately? You can't complete its setup without opening an iTunes account; this is but a taste of the future.

    And worst of all, as Apple knocks off competitors consumer choice will plummet for two reasons. First, Apple tends to make 1-3 products for each market segment and "makes choices for us" in their paternalistic and arrogant way. Even if their products are great, with all the amazing technology out there it is impossible to satisfy the needs and desires of more than 10% of buyers with only one or two products. It forces many of us to become Apple customers not by choice, but because the alternatives may be out of business in less than a year leaving us without support. The deterioration of consumer choice will be exacerbated as most competitors utilize the strategy that HP, Dell and Samsung are already employing: design products that mimic Apple's and try to undercut them on price and add a few features. This means that we have the choice of Apple products made by Apple or virtually identical, lower quality products made by the few remaining competitors.

    I wish I had more faith in Google or Microsoft to maintain clear alternatives as Google presently appears to be doing with Android - on phones, not on tablets), but I think both companies have demonstrated a tone-deafness and overall lack of expertise designing products and creating partnerships that provide consumers the kind of elegant, seamless integration of all their devices and media that Apple does and that consumers will come to expect, and demand. I'm rooting hard, and I won't buy an Apple product, even if I pay more for a slightly inferior one, but I'm afraid the deck is heavily stacked against those of us who want choice.

    Bad, bad day for the computer consumer; great day for Apple shareholders.
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