HP announces after poor results with it’s tablet sales, and serious loss of sales in PC device sales and high costs of hardware support it is moving to discontinue all hardware in stages as it moves to focus on software for search & organizational functions. Shares immediately dropped from 4.38 ea to well under 3.80 ea. First thing to be stopped is drivers for windows 2000, XP, and Vista. No further development will be done on drivers for Windows 7, Mac OS/X, and Linux but they expect to leave drivers available for the next few months. Roughly 900 product under development are to be scrapped immediately.
The above is my condensed summary of ‘wall street news’, Reuters, Tech republic, stories published this AM and linked from Yahoo’s home page.
I don’t think that they are getting out of the hardware business per se, but they are getting out of the low-margin PC business (as well as the tablet and likely the mobile phone business).
HP has quite the install base in the data center (both with HP/UX-based machines, as well as Linux machines and even some old HP 3000’s) – most of which are high-margin – so I don’t think that it makes sense for them to exit the hardware market.
maybe you are talking about a different HP because i didn’t read they
were getting out of the hardware business…just mobile stuff (which
they really played badly)…
–
DD
openSUSE®, the “German Engineered Automobile” of operating systems!
3 of them came as subscriptions to my inbox with search phrase that I can’t bring up in the browser but this one does work … er or I hope it does fail… Before It’s News
The article has a link the sites spin-off PC business which opens to a list of PC devices (camera’s, copiers, printers, scanners, PC’s, etc ) which will be deleted from their market and possibly sold off to other takers. Then the article sites, that PC and PC related devices are becoming a playing field of one ‘DELL’ virtually making the PC extinct.
I don’t like the news as I hate WEBOS like the touchpads, cell phones, etc use. Give me a PC with conventional real power any day. Where I can decide if I want something on the WWW or not. If I need a camera I will use a camera not a camera enabled portable browser in the form of a phone, ipad, etc… If I need a phone I will use the landline phone, PC - Phone, or cell, and don’t need games, ads, shopping, and other stuff on such a phone.
I just re-read the link I put in my last post and followed all the embedded links. It appears to me that the HP price per share is being broken down by department. While the primary gest of their concern revolves around WEBOS, & Tablets, they are realizing hard times for their PC sector including their related devices. Remember when the biggest expence to having a printer was the hardware. The ribbon or ink, or toner was the least of the cost factor. Now, you can buy the hardware for roughly the same price as it’s initial supplies. It’s like buying a car for the cost of the fuel and lubricants initially shipped in the car. Where’s the money for material, labor, and factory coming from in this scenario? certainly not from fuels and lubricants if they too are being discounted.
> On 08/19/2011 01:46 PM, techwiz03 wrote:
>>
>> Shares immediately dropped from 4.38 ea to well under 3.80 ea.
>
> what currency is that in?
> my ticker shows HPQ trading about $30 (US) at yesterday’s close and
> about $23 and change just now…
>
> a public ticker show about the same:
> <http://www.google.com/finance?q=NASDAQ%3Ahpq>
>
> maybe you are talking about a different HP because i didn’t read they
> were getting out of the hardware business…just mobile stuff (which
> they really played badly)…
Stock dropped like a rock at the opening bell (down $6 and change, at about
$23.50 right now and steady).
From what I’ve read, they are also shopping the PC business but I can’t find
any clear reference to the laptop segment, where they were doing pretty
well.
On Fri, 19 Aug 2011 17:23:09 +0000, DenverD wrote:
> On 08/19/2011 01:46 PM, techwiz03 wrote:
>>
>> Shares immediately dropped from 4.38 ea to well under 3.80 ea.
>
> what currency is that in?
> my ticker shows HPQ trading about $30 (US) at yesterday’s close and
> about $23 and change just now…
>
> a public ticker show about the same:
> <http://www.google.com/finance?q=NASDAQ%3Ahpq>
>
> maybe you are talking about a different HP because i didn’t read they
> were getting out of the hardware business…just mobile stuff (which
> they really played badly)…
There was an article today on the BBC website that indicated they had
made the decision now.
Also HP have invested a lot over the years in printer and scanner software which they can still use to market their printers and scanners; virtually everything in a PC they have to get from someone else - so it is difficult to differentiate yourself from the box shifters.
I am knocking on wood over the HP printers. They have good Linux support and HPLP manages my printing very well. My plans for my next printer are for a HP monochrome Laser printer.
On 08/19/2011 11:46 AM, techwiz03 wrote:
>
> DenverD;2376497 Wrote:
>> On 08/19/2011 01:46 PM, techwiz03 wrote:
>>>
>>> Shares immediately dropped from 4.38 ea to well under 3.80 ea.
>>
>> what currency is that in?
>> my ticker shows HPQ trading about $30 (US) at yesterday’s close and
>> about $23 and change just now…
>>
>> a public ticker show about the same:
>> <http://www.google.com/finance?q=NASDAQ%3Ahpq>
>>
>> maybe you are talking about a different HP because i didn’t read they
>> were getting out of the hardware business…just mobile stuff (which
>> they really played badly)…
>>
>> –
>> DD
>> openSUSE®, the “German Engineered Automobile” of operating systems!
> I just re-read the link I put in my last post and followed all the
> embedded links. It appears to me that the HP price per share is being
> broken down by department. While the primary gest of their concern
> revolves around WEBOS,& Tablets, they are realizing hard times for
> their PC sector including their related devices. Remember when the
> biggest expence to having a printer was the hardware. The ribbon or ink,
> or toner was the least of the cost factor. Now, you can buy the hardware
> for roughly the same price as it’s initial supplies. It’s like buying a
> car for the cost of the fuel and lubricants initially shipped in the
> car. Where’s the money for material, labor, and factory coming from in
> this scenario? certainly not from fuels and lubricants if they too are
> being discounted.
>
>
Whats the fuzz about HP?
Well, what i hear and read it boils down to HP folding the tablet business.
It was a disaster for HP and competition is though. Especially from Apple.
Also it seems that they had not a good product on the market and the
price was high.
I don’t think they would sell off their printers, but perhaps their pc
line. Its so low margin that it makes no sense really.
What is more tragic is the uncertain future of WebOS.
–
Euer Komputerfriek Joerg
using LXDE on 11.4 x64 and happy with a cup of real hot coffee… http://mzl.la/o4n9Yw
Only time will tell … if it’s of any interest, CTV news Calgary affiliate showed a warehouse where they packaging, PC’s, Monitors, Printers, Scanners and copiers as they aired about HP getting out of PC business being a big plus for dell which hopes to triple their business. In the background was a sign “HP getting out of PC business sale … Prices slashed on all HP products”. In the story, they said HP plans to continue software hardware support, and other software technologies but with interest leaning in the way of electronic reproduction over printed reproduction, they MAY not be willing to stay involved with any part of the hardware side of things.
I could swear I read today HP announced a new PC today targeted to the corporate and consumer market but now I can’t find the article.
It’s a Compaq model.