HP Reboots to Confront the "Tablet Effect"
Amid consumers' passion for the iPad and rivals, the tech giant will explore the sale of its PC division and dump its own tablet, the TouchPad.
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#1 Aug 20, 2011
Even if the Enterprise is HPs rightful future, a big struggle going forward will be "consumer confidence". Pulling the tablet after such a short period of time, even if financially a reasonable move, will make consumers question company commitment to future products and technology. This can hurt. HP's past ten years have been filled with twist and turns, tumultuous turnover at the top, and changes in strategic direction. How do you convey commitment and stability to your customers? Dropping the entire consumer business...is this HP: Innovator turned Dinosaur? Never mind promising stability to its 300K+ employees...Investors have been understandably critical of yet another dramatic HP milestone. The PSG business is the lowest margin BU in HP's current organization (5.9%), from that perspective it makes sense. Maybe the financial services piece is next (also single-digit margins). How does that fit in with the vision of "expand[ing] the company into software and services that help customers deliver computing over the Internet, via the so-called cloud."
HP: Innovator turned Dinosaur
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