Linked by Howard Fosdick on Fri 23rd Nov 2012 14:03 UTC
In the News Hard to believe, but articles are popping up at business websites claiming that venerable Hewlett-Packard may fail. In their most recent fiasco, HP wrote off a loss of $8.8 of their $11.1 US billion acquisition of Autonomy and have alleged fraud in the deal. Revenue is down 7% from a year ago and the stock has hit a 10-year low. The company is laying off 27K employees but that may not be enough. Some speculate HP might be broken up into parts with buy-outs involved. This article from last May offers a good in-depth analysis of how all these problems came to pass.
Permalink for comment 543029
To read all comments associated with this story, please click here.
Comment by kaiwai
by kaiwai on Fri 23rd Nov 2012 14:45 UTC
kaiwai
Member since:
2005-07-06

Why is this surprising? crap laptops of poor quality, desktops with low quality out of date components, printers whose ink cost a small fortune, the lack of any sort of value added justification that pulls a customer to their products over Dell, IBM, Lenovo etc. then add on top of that the money wasted hand over fist keeping Itanium alive when the writing on the wall was the moment the AMD Hammer was launched then Intel played catch up.

What is probably more annoying is this, they have all the raw ingredients to turn around the company just as Sun Microsystems had all the raw ingredients to turn the company around but this is what you have when you have a clueless CEO running a company. Running a technology company isn't just the allocation of resources to departments but leading from the front but far too many times the CEO's of said companies just simply don't have a clue about technology itself. I doubt we'll see much of a change - best case scenario we'll see HP split up and sold off or worse case it simply limps along and becomes a parasite on the economy sucking up much needed capital from credit market.

Edited 2012-11-23 14:47 UTC

Reply Score: 11