HP did WHAT?!

Date: January 14, 2012 |admin | Ecommerce

Notes on Hewlett Packard’s decision to drop the PC business and cancel the TouchPad. (Pt. 4 in the cloud series) Stills are from HP commercials featuring Serena Williams youtu.be Shaun White youtu.be and from KickthePJ’s entry into a Hewlett Packard competition youtu.be You can search out other spots and entries on YT. There are dozens. “The Computer is Personal Again” is a photograph by Duncan licensed under (cc). www.flickr.com HP. Giant corporation. They’re the world’s largest manufacturer of PCs and they suddenly said they want out of the business. Spin off or sell? They didn’t know. Or they weren’t saying. It came as a surprise to customers… to retailers… and to employees. Way to handle an announcement, HP. Disclaimer: I’ve done some contracting with HP’s Personal Systems Group through Michael Witlin Associates. I worked with some current HP employees at other companies. I’m a little upset they were treated so rudely. Look. Strategically, this is probably a good idea for HP. Margins on PCs are razor thin. Other parts of the company are much more profitable. But HP built up a huge brand. Remember: “The Computer is Personal Again” The snowboard guy. The tennis lady. The dress designer. Dr. Dre. The YouTube contest. And behind marketing: An efficient supply chain. A responsive channel. Strong design. Variations for every market. And then they just dumped a tankerload of doubt and uncertainty on the whole business. Oil spill. Everyone’s rattled. And then the TouchPad

Comments

jeremyshaw

Date: August 29, 2011 |

Another awesome explanation, Mickeleh! I hate what razor blade companies do with that tactic and you couldn’t have put it more accurately, too - give the razor away and sell you the blades for a ridiculously high price! >=( Grrr!

bandgeekmike

Date: August 29, 2011 |

I didn’t recognize any of those HP PC advertisements. :(

hfGermany

Date: August 29, 2011 |

Nice one! One more interessting point in Leo Apothekers agruments: We are leaving the Tabletmarket, because it would be too expensive to compete against a well known market leader.
Know they are entering a market with a high investment (10bilion for autonomy) and 2! well known competitors, Oracle and IBM…

But even if this thoughts might be valid for the company, the distribution of the news was so bad that no scale would masure it.

mickeleh

Date: August 29, 2011 |

@bandgeekmike see the links in the doobily doo.

mickeleh

Date: August 29, 2011 |

@hfGermany Thanks for the added insight. I agree completely. Saying you want to get out of the PC business without any information on how or when you will accomplish that undermines everyone’s confidence. It’s also very rude.

hfGermany

Date: August 29, 2011 |

@mickeleh Bah, I just re-read my post … “Now” instead of “Know”, “thought” instead of “thoughts” the only excuse for those really bad typos is: I was in a hurry to go to lunch ;)

mickeleh

Date: August 29, 2011 |

@hfGermany Some day YouTube will let us edit our comments. Google has the technology—they use it on Google+

ZoeDahmen

Date: August 29, 2011 |

@mickeleh That’s probably because those people are looking for very different things. For those of us who’ve “grown up” using final cut, as I have, imovie just doesn’t do it for us. To me, imovie is frustrating but I’m sure to people who have always used imovie Final Cut X seems really great, especially if they’re planning on transitioning from amateur work to professional work. But most of the people I’ve talked to in the professional world hate FC X.

lightanddarklove

Date: August 29, 2011 |

@mickeleh very possible. I wonder if a current PC company will gobble them up, or if a newcomer to the PC world will take them on. Maybe Microsoft will start going into the hardware business again (I’m assuming at one point they did).

mickeleh

Date: August 29, 2011 |

@lightanddarklove Microsoft IS in the hardware business. Very successfully. They make XBox. (also a variety accessories for PCs (keyboards, mice, etc.). Amazon lists over 400 different Microsoft accessories. Mind-boggling. But I doubt that they will make PCs. That would put them into direct competition with their primary customers for Windows: other PC manufacturers.

As for who might buy HPs PC business… stay tuned.

a24q7

Date: August 29, 2011 |

THAT WAS YOUR BEST EPISODE TO DATE. kEEP UP THE FINE WORK!

bandgeekmike

Date: August 30, 2011 |

@mickeleh Oh. I see!

Stevo6452

Date: August 30, 2011 |

Your good u are. >subscribed<

lightanddarklove

Date: August 31, 2011 |

@mickeleh I didn’t think about that (the putting themselves into competition with their customers). Though they could stop selling XP to other PC making companies and set up a monopoly of sorts, not that it would be good for consumers, but it might be good for them.

I knew Microsoft made XP but I didn’t know how many PC accessories they made. Though I didn’t see any non x-box harddrives. They could sell hard-drives pre-loaded with Windows to do-it-yourself pc building consumers.

Amberspaz55

Date: August 31, 2011 |

You’re so good at explaining this stuff XD a lot easier than trying to find it myself =P this is why I use what the buck for celeb news, philly D for news about dumb asses being dumb asses, Wheezy waiter for explosion news, and you on tech stuff =P

Tripp426

Date: August 31, 2011 |

@kloklo1274 And yet Hewlett-Packard came into existence long before harry potter. Ironic.

mickeleh

Date: August 31, 2011 |

@Amberspaz55 OMG OMG OMG I think this is my favorite comment. Ever. *dies*

mackenzii709

Date: August 31, 2011 |

I actually managed to get one of those touchpads a couple days ago at a futureshop.

Amberspaz55

Date: August 31, 2011 |

@mickeleh Don’t die! =O If you die, how will I get my tech news!?! I’m far too lazy to google this stuff myself. Also, that’d be pretty sad ='(

juliuschas

Date: August 31, 2011 |

Tech companies are like sports teams: they can’t wait to unload their star players. I think I’ll need a six-pack of Mickelob’s to think this one through. And why didn’t all my online tech stores tell me about the Touchpad virtual giveaway?

AlbaG50

Date: September 2, 2011 |

I was expecting the HP sauce. Maybe it knocked the tomato sauce off the shelf

MissSoyJoY

Date: September 2, 2011 |

They’re doing a Spinoff. not dropping the PC business.

MrAndroidGeek

Date: September 12, 2011 |

“is they keeping Printers ” EPIC comment

Lightfromsirius

Date: October 13, 2011 |

HP understand Steve´s iCloud and lost no time to change the way.

scrahan81

Date: December 15, 2011 |

leo apotheker = ceo fail

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