Linked by Howard Fosdick on Wed 29th Aug 2012 20:25 UTC
Hardware, Embedded Systems Can Hewlett-Packard bounce back? Third quarter results are in and they don't look good. Total revenue is down 5% year over year, and profits tanked on a $9.2 billion noncash write-down on the 2008 EDS acquisition. What's HP's strategy? Meg Whitman has now been CEO of the struggling giant for a year. She compares HP's turnaround to that of Starbucks, saying "Usually these kinds of turnarounds take anywhere between four or five years... There's nothing fancy about these turnarounds. This is not advanced business, this is 101." I question if refocusing on core competencies is enough. Maybe HP needs to get into the smartphone and tablet markets. Maybe it needs to expand its services business. Think I'm wrong? Then bet your money on HP stock and get rich. HPQ trades at its lowest point in a decade and sells for an rock bottom forward P/E of 4.2.
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Too many things around, too few unique
by kingmouf on Fri 31st Aug 2012 09:24 UTC
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Well I think the problem with HP (and most other companies of similar status) is that they offer too many things.

I was looking at their laptop lines. Way too many choices, way too much cost for them. There should be just a couple of different lines and a configurable number of choices for each machine. The end of it. But since they would limit the 100 different models to just a handful, make them worth. Give them unique features and not a "me too". make them recognizable (this is an HP machine).

Also on the servers. They have practically no software. Oracle just killed them (no matter what the courts decided). Look at IBM - it was all the core software from the OS to the database to the productivity and the services as well. That is how they manage to keep all the hardware floating. HP wanted to stay on the proprietary terrain and thought it would do that cheaply with Itanium, so it bet on Intel. I think HP would be better off keeping their design teams after PA RISC rather than using Intel (look at how many millions they are giving Intel!).

WebOS. Now that is an epic failure. They tossed it so fast that it is inexplicable. The whole concept to combine things from smartphones to tablets to printers was a great idea in my opinion. They should have licensed it and keep it alive.

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