Let's hope the PC drama at Hewlett-Packard Co. (NYSE: HPQ) has played itself out for now.
Yesterday, HP made a 180-degree turn on its PC business, announcing it would not spin the $40 billion unit off after all. New CEO Meg Whitman doesn't deserve all the credit -- she had endorsed the spinoff plan earlier in her five-week-long career with HP. (See: HP Needs a Higher Bar for Whitman.)
HP's off-again, on-again relationship with its PC business has not impacted the supply chain so far. In fact, the decision to use up inventory on a last run of its TouchPad no doubt eased the oversupply situation the supply chain finds itself in as it enters the fourth quarter. (See: HP Chooses the Lesser of Two Evils.)
The real question facing HP -- as well as all other PC makers -- is the fate of the overall PC market. Supply chain executives got some guidance this week at the Electronic Components Industry Association executive conference. Len Jelinek, director and principal analyst for semiconductor manufacturing at IHS iSuppli, said the tablet fan base is still missing one significant group: IT managers. Until tablets make the transition from entertainment device to workhorse, they won't get a share of the all-important IT business budget.
"PC is still the dominant system," Jelinek told the conference. "It is still at the point where it is a computer. It sits on the desk. It computes. It needs another innovation. The desktop computer is still loved by the IT guys because they can still control the content."
HP and Acer Inc. have done well in the PC market, he said. The netbook, an attempt to change that market, started out well because of its price point. However, there were too many other choices in the market, and demand dropped off.
The ultrabook -- the super-thin notebook computer on which many component makers are pinning their hopes -- may be the form factor that lifts the PC out of the doldrums. It still faces power consumption issues, and it will have to integrate a touch screen. The ultrabook needs to be a flat tablet with all the operating power of a PC. "That could be the killer app," Jelinek says.
Will HP turn its eye toward the ultrabook? If so, it probably has a lot of catching up to do. The company is throwing all its marketing muscle behind its new suite of security services, measuring itself against IBM (which exited the PC market more than a decade ago). Still, as IHS iSuppli pointed out in September, HP sold more computers in the second quarter than any other vendor without even trying. (See: The 'Whoops' Business Strategy in the Supply Chain.)
If it applies itself fully to the next-generation PC, I wouldn't bet against HP. Its corporate mantra (I think) still is "Invent."
It’s a drama and game play between the top officials. I don’t think they can spin off the PC business that much easily because that’s their core business area. More over they cannot play well in software business because still they have products and suits only from earnest while Mercury. They had spend a quite some time for tablet R&D and its webOS.
If you really want to impress me, let's see an Ipod/Smartphone/Blackberry, etc. that drew power from light. Now that would be an innovation worth gold, or lithium, eh?
Interesting thread. I doubt if I have ever seen any such bag with a specific pocket for lunch. Maybe, more than the space, we need to reduce the weight of what we carry in our bags- laptops, chargers, batteries et al.
This idea is really cool and i think u need to patent this idea before some one steals just kidding. definitely with more and more gadgets coming up we need to find a solution to carry them with less effort. I would prefer something light wait.
It would really help me because i carry 2 bags hope i can fit my lunch into the same bag .
It is very good news. HP has capability and there is lots of space for innovative ultrabook with low low power and many more innovative features. We wish to see some good products from HPin coming months.
"Someone will get rich inventing a carrying case that can hold a laptop, tablet, smartphone, & space for lunch."
Hi, pocharle
You made me laugh with that. :) I'm glad someone else thinks of space for lunch when thinking of a carrying case, too. What I haven't found yet is a laptop case with a specially designed space for lunch.
Flip-flopping definitely comes with a price where your stakeholders (particularly the investors) begin to lose confidence in the company's strategic plans and long-term growth. I don't think any reputable company can afford to make such haywire decisions in the long run.
Good news! I think this is the right decision for HP. The former CEO really messed up with his strategy and vision. The company lack backbone to push through in the tablet market, andhe you think the right decision was to drop the profitable PC market, that was a mess.
It is good seeing HP reversed the decision to spin-off their PC division. This has been their core business line and the most profitable to the company, PCs industry has to continue to be part of their future.
Nothing wrong with adapting, but flip-flopping comes with a great price. For one thing your customer base(s) begin to lose their grip on what you represent, what you stand for and what your overall position is.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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