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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RE: Printers and stuff...
by bassbeast on Fri 31st Aug 2012 00:55 UTC in reply to "Printers and stuff..."
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Actually some of the Compaq stuff was pretty well built, especially their small business offerings. i have a Compaq I use at the shop as a nettop and that thing has been running 8 solid years, never a bit of trouble, just a really well built machine.

What killed HP for me was when they were stupid enough to get into Dell's race to the bottom and for several years there it seemed like the two of them were having a contest to see who could build the worst junk towers possible. Anybody ever have to work on one of those Pavilion mini-towers? What a giant POS! Micro PSU you could only get from HP and was ALWAYS woefully underpowered, no room for the fans to breathe, much less for expanding squat, the entire design was just shockingly bad.

So I'd say their problem is gonna be how to get their rep back after years of selling total junkers. Before the race to the bottom i used to buy HP and they were well built, now I've moved on to Asus and Samsung for laptops and home built for desktops just to try to avoid the junkers. I will give them credit on their larger laptops, my oldest insisted on going out and buying his own instead of shopping online and the HP 17 inch he's had for 2 years now, works like the day he bought it, but its gonna take more than a couple of good laptops to fix their bad rep.

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