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  1. samab's Avatar
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    #21  
    Quote Originally Posted by 65fastback View Post
    second, they are selling on ebay for $250-300 for a 32gb. Thus, you can conclude, they COULD have sold TONS of the 32gb @ $299, only lost ~$35 per unit and made that up easily on accessories and apps within 6 months on each unit, most likely.
    It is precisely this kind of low profit margin that drove IBM to get out of the PC business and why HP is following IBM's business model.
  2. #22  
    Quote Originally Posted by nhavar View Post
    I doubt the vast majority of people buying are doing so to hack Android. That's still a niche kind of use. People overstate the hacking/patching desires of a community. Most people don't care, don't want to dig deep enough, and don't want to void their warranty. Certainly none of the people I saw in line this morning looked to be the Android hacker type (middle aged moms, verbal webOS enthusiasts, and some people just wondering what the line was for.)
    Nobody said anything about a majority but it is a significant number, the thread dedicated to the effort at XDA has over 160,000 views in the past 3 days.
  3. cgk
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    #23  
    Quote Originally Posted by 65fastback View Post
    billion dollar bath????? getting rid of them all at this price point is only costing $100 million.....and that $100 million is a write off. sooooo....not even close to costing them a billion.
    For GAAP guidance, we expect to take a GAAP-only cash charge of approximately $1 billion for restructuring and shutdown costs related to webOS devices.


    Hewlett-Packard's CEO Discusses Q3 2011 Results - Earnings Call Transcript - Seeking Alpha
  4. cgk
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    #24  
    Actually something else in the Q&A I never noticed before:

    Can you just give us a sense of how much of the $332 million corporate investment losses were related to webOS and what the normalized run rate should be there? Because what I'm trying to understand is, if you don't either shut down this business or sell it, it'll be very difficult to get the segment to break even. For example, if you pursue a licensing model and get to $300 million assuming $5 per device, you'd have to sell more than 60 million licenses. So, I'm just wondering how long the leash is to lower the losses here or to get to break-even? Thanks.
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