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What Now, HP?

Posted August 31, 2011 7:47 AM

The industry is abuzz with Hewlett-Packard's recent announcement that it plans to abandon its efforts in the smart phone and tablet computer markets and is considering spinning off or selling its personal-computer division, considerably redirecting a company that for many years has been the biggest PC maker. How do you react? How will such moves change the high-technology landscape? How will the rest of the market react? How will HP's decision alter your personal and business plans? How will it change the way the industry looks five years from now? Why?

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#1

Re: What Now, HP?

08/31/2011 10:29 PM

I think perhaps the open source software industry, coupled with increasing complexity makes it hard for a giant like HP to come up with a decent business revenue model without completely rewiring the company.

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#2

Re: What Now, HP?

08/31/2011 11:56 PM

It definitely looks as if HP have been scared of. (Sounds harsh I know) But it does seem odd that a company would dump a large portion of itself. Only have to look not to far to see many companies that are quite happy to be extremely diversified.

on a side note I for one cannot understand their reluctance to get their touch pad running - could have been a really good tool. mind you the world is full of could have beens.

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#4
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Re: What Now, HP?

09/02/2011 11:52 PM

This is not the first time HP has "dumped a large portion of itself"- they started off producing highly specialized test equipment- the best that could be had in the world. When Hewlett and Packard retired, someone decided to take a well-respected name and wallow in the mud of also-ran consumer-grade products- they spun the original test equipment company off as Agilent...

So, what impact will HP's new change of identity have on me? Absolutely none. It has been years since I have even remotely considered purchasing anything associated with HP (which hurts, because I really loved my Palm Tungsten...). As far as I am concerned, HP can do what ever they want, and I will CONTINUE to avoid their products at every opportunity...

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#6
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Re: What Now, HP?

09/03/2011 11:31 AM

"It definitely looks as if HP have been scared of"

this happens when the accountants take over, and all imagination vapourizes.... at a time when opportunity for advancement is at a maximum, and the market has never been larger... talk about a poor idea. they will regret such a decision.

Those without vision shall perish.

chris

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Re: What Now, HP?

09/04/2011 7:50 PM

"this happens when the accountants take over"

It may be an age thing, or I am some what a little more awake than I was at a younger age but bean counters seem to have become a huge problem part of our lives. To the point where it looks as if they are the ones responsible for the upward spiral of national debts. Averice has been around almost longer than life but I blame the rise of the bean counters......arrr sorry starting to rant

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#3

Re: What Now, HP?

09/01/2011 4:25 AM

I've had three palms: two just PDAs, and now a trëo phone/PDA; so the question for me is "Do I buy a pré, not that they've dropped over 50% to buy?".

Is any one likely to take on the support of WebOS? Does that matter?

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#8
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Re: What Now, HP?

09/05/2011 2:31 PM

Should have read "now that they've dropped over 50% to buy?"

We need a stupid checker as well as a spell checker.

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#5

Re: What Now, HP?

09/03/2011 11:26 AM

don't confuse dropping development of WebOS with HP getting out of the PC business

they sell many SFF's to businesses, I also don't hear any talk about abandoning the printer market

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#9

What was an upscale instrument maker doing in the PC business?

09/07/2011 6:18 PM

You can ask the question from the other point of view. Why did they get INTO consumer products in the first place?

Maybe they would prefer to keep their identity as a US-based company and get back into the business of supplying public and corporate research institutions with high-tech help.

I use HP computers. But I also remember the instruments they used to make. And there's a disconnect there. "Why do these computers have the HP logo on them? They aren't even rack mounting!"

There are still plenty of players in the consumer electronics market. But most of them have an international ("multinational") identity. If you want to be a company with a US identity in the world today, you will probably NOT be making consumer products. You will be like Boeing, connected at the hip with the military establishment and providing the world with extremely high-tech complex machines (aircraft) or like Gibson making specialty musical instruments for premium prices.

I have no idea what the HP people are cooking up (except I know they are starting a cloud services business) but I suspect they know what they are getting into (and getting out of).

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#10

Re: What Now, HP?

09/15/2011 3:15 PM

I know that this was touched upon in another reply, but I've got to wonder if the executive staff of Agilent is quietly chuckling to themselves. HP gained their reputation of producing the finest electronics with superb test equipment long before they delved into the then exploding personal computer market. Test equipment is a narrow niche market to be sure but with sound Engineering Research and Development (not market research) a perennial market none the less. Now the test instrument product line has been spun off as Agilent and they are doing just fine still making some of the finest test instruments that can be bought. Meanwhile, the personal computer market have proliferated into a choked marketplace with very little profit to be found and a shrinking maket share.

IMHO, chalk this as a win in the Engineer's column and a loss in the bean counter's column.

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