HP Spinning off its PC manufacturing business is an opportunity for other vendors like Dell, Acer and Lenovo to start plotting their next move to have a way of getting bigger piece of the hardware cake.
And I Believe also that all the high-tech products such as pcs and mobiles aren't reliable as were few years ago. The competition to catch up the top, includes to produce a lot of new models that minimize the research time, the testing time and finally, the evaluation time.
@Nemos am thinking that might be the reason why HP intends to abandon that sector. You have correctly analysed it! Searching for materials, astronomical demand for quality products from both consumer and enterprise, time and money spending on those are far too huge. In software technology sector, hardly can such huge amount of time expending in software development.
Servers and software services? @t.alex if you take tour to IBM servers and software, especially IBM's Power System, Systems P, I and Z( mainframe) are perfect example and in particular enterprise market with attention on cloud/virtualization computing. May be HP is also eyeing similar market sector - software and servers for enterprises of all levels.
Dancing? How about crying on HP's Grave? HP PCs were always more expensive and touted as better product, but costumers did not see it that expect for some corporate deals. I am surprised that after acquisition of Compaq things did not improve in HP image. With Lenovo and other computer manufactures quality has improved and price was always lower than the equivalent HP product. On the other hand a competition is good.
@Hwong,you are right, I feel HP will allow for more less quality products in their name if they stop supporting old pc business. They have made a name and that name can be taking advantage of .
This is really a big concern,I am thinking of the number of HP pc that are in circulation right now. Hp products are known for their durability and stability and more so availability and right now people know HP, probably more than other manufacturers and people still prefer their laptops and printers.
I quite agree that Hp produces on the the best PC and printers but the ink like you rightly said are just too expensive and some how this opened the market for the fake HP products or should I say less quality products
"I bought HP Deskjet printer a few years ago, and now is still functioning well. The only bad thing is the ink cartidge being expensive."
The same with me and the HP laptop computer I I have been using for a year and half is still working fine. However, the CPU is AMD technology and it used to overheat. I wondder what would happen if I ever have to replace it.
General feeling is net margin from PCs, as line of business, is approaching "zero" threshold and trend will be negative, quite soon. For other products in consumers segment, as t.alex has well mentioned, net margin is still alive due to continous needs of replaceable components. Imo, HP has taken that decision to launch definitely WebOS as new asset and business line for making better financial results.
I wouldn't want to dance on HP's grave yet either, because my first computer bought in 1990, was a HP and served me for my years without any problems.
I know HP have done pretty well in the PC division which have generated revenue over many years. However, lets face it, this is the best ever business decision for HP. It's been long awaited. pulling out of tablets and smartphone market after a massive poor sales record is a good move.
I hope HP is able to continue support services for existing customers.
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.
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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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