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  1.    #1  
    HP CEO change conference call LIVE transcript.

    Pls read from the end to the top of the lines, thanks.

    4:35 pm Wrap up from Meg: "Business is about relationships. You've got to get to know me... we're going to invest in those relationships."

    4:34 pm Lane jumped in to rant about PSG some more. "We thought PSG would be stronger for customers than inside. If it can't be stronger on the outside than it stays inside. The same for investors. It'll be the easiest decision we ever made -- investors and customers will tell us."

    4:33 pm A: (Whitman) I have talked to the executive council, and we talked about bout keeping people. We've got to work as a team, the employees want to be led. They bleed HP blue, they are excited about this, they want very much for this company to succeed. We may not keep everyone, but we'll keep the vast majority of people who want to believe."

    4:32 pm Q: Meg, have you spoken to your key reports? How will you keep them?

    4:32 pm A: (Lane) "I'm not sure it's important to dwell on the timeline. It wasn't last week, it wasn't a month ago... it was more like, you don't deliver a quarter, you make some big announcements that get communicated poorly. How long do you go along with that?"

    4:31 pm Q: Can you walk through the timeline of when you decided to have discussions with the board on exec change?

    4:30 pm A: "The best thing we can do is get to a decision on PSG as fast as possible. It's not fine wine, it doesn't get better with age. We've got to get to a decision and communicate it."

    • 4:30 pm Q: You're reconsidering the PC business -- how you plan to manage that?

    • 4:29 pm A: (Whitman) "In the end the only thing that will rebuild confidence is if we deliver."


    4:29 pm A: I am hard-pressed -- I can't think of a name I would select today I would pick over Meg.

    • 4:29 pm Lane is not happy that everyone is questioning the board.

    • 4:29 pm A: (Lane) I go back to my last answer. I don't think we should go back in history, but this board did not select this Leo, and I remember people wondering if Leo had picked the board. You remember all that?

    • 4:28 pm Q: One of the board's key roles is selecting a leader -- I think this will set a record for hiring and firing a leader. Have you really vetted this process? How do investors gain confidence in the board?


    4:27 pm Lane really going to the mat for the board here.

    • 4:27 pm A: I'm proud of the individuals on this board and the way they work together.

    • 4:26 pm A: They work really well together -- the openness, the tough questions. We're embarrassed about the communication of these decisions, but we carefully consider the decisions.


    4:26 pm A: (Lane) I'm giving you an answer right from my heart. In January I added five new members. This is not the board that was around for pretexting, or the board that fired Mark Hurd. This is not the board the press wants to write about. It's not this board.

    4:25 pm Q: It appears as though investor confidence in the board is low -- are you changing anything?

    4:25 pm A: There was not a better choice on the outside. If we thought there was a better choice, we would have conducted that search.

    4:24 pm A: We looked at some inside that aren't ready, we looked at an interim role. We considered other board members. I knew from the beginning of the process that the strongest candidate to do this -- I've seen Meg lead. I predict the HP employees are going to get on her side. It was almost like weeks ago I knew where the process woud come out. The question was would she change her life to do this?


    4:23 pm A: (Lane) As we started thinking about this and collecting data, we of course, we had to think about what options we had. We knew we had outside options, but we had fairly recent data from last year's search. We had internal candidates, we have at least three or four people on the exec committees. There was a desire to reach inside, and that strong desire led us to say "do we have an internal candidate first... because we can't find anybody better outside."

    4:22 pm Q: Some people think it's hasty and premature to name a permanent CEO rather than conduct a comprehensive search?

    4:21 pm A: (Lane) That doesn't mean we're transforming HP... we've stricken that word from our language.

    4:20 pm A: From what I know now, the strategy is right and the initiative we undertook on August 18th are right.

    • 4:19 pm A: (Whitman) The answer is yes. I am supportive of the actions announced on August 18th, but I am now deeply involved and will review the initiatives.

    • 4:19 pm Q: When Mark Hurd left HP, the company was quick to say there wouldn't be a significant change to strategy, and some of that didn't come through. Are you going to review the financials and strategic decisions?

    4:18 pm A: (Ray Lane) Yeah, one, this is a big company that requires the executive team to be on the same page. And we didn't see an executive team that was working together. The biggest was operating execution, the ability to get down deep into the businesses. Third was communications, we struggled in the August 18th announcements and how we've communicated to our customers, press, and partners. I look at those three, and look at Meg, and her strongest attributes are leadership, team play, and operations.

    4:17 pm Q: Can you be more specific about the areas of execution that were lacking under Leo that you expect to improve?

    • 4:16 pm Q&A time!

    • 4:16 pm She's going through HP matters again. "And now it's time to get to work."

    4:16 pm "We will work hard to attract and retain the most innovative workforce."

    • 4:15 pm "As CEO I'm focused on ensuring that HP delivers on its commitments to its partners and customers."

    • 4:15 pm It sounds like things are status quo for PCs and webOS.... which is to say things are still completely up in the air.

    • 4:14 pm "We continue to investigate options to recognize the value of webOS software."

    • 4:14 pm "With PSG, we expect the board to make a determination by the end of the quarter."

    • 4:14 pm "The current plan includes the spinoff of PSG and the discontinuation of TouchPad and webOS products."

    4:13 pm Back to Whitman. "By executing our strategy we can deliver higher value... we'll continue to invest in servers, storage, software, PCs, and service-level offerings."

    4:13 pm "We have less certainty with revenue, specfically our hardware businesses."

    4:12 pm CFO Cathy Lesjak now talking about financials. They're.... mixed.

    4:11 pm "Going forward HP will have no higher priority than to meet the challenges of today's macroeconomic environment... at the same time we have to deliver great products."

    4:11 pm "HP really matters. It matters to Silicon Valley, to California, to the US, and to the world."

    • 4:11 pm Turning it over to Whitman. "I'm glad to be speaking to you all as CEO of HP."
    • 4:10 pm "We're at a critical moment -- we need renewed leadership."

    • 4:09 pm "Meg has a solid understanding of our company and our products.
    "
    • 4:09 pm "Meg is a technology visionary with deep experience and recognized management experience."

    • 4:09 pm "That brings us to the announcement we're making today. We're fortunate to have someone of Meg's caliber to lead HP."

    • 4:08 pm "At the same time the board began to observe weaknesses... it became obvious when I talked to you after we made our announcements."

    • 4:08 pm This "resulted in a series of decisions to better capitalize on trends."

    • 4:07 pm Explaining the Apotheker hire. "In order to grow, HP needed to make strategic investments... Leo was tasked with leading the future of HP."

    • 4:07 pm The board believes the CEO change was "absolutely necessary."

    • 4:07 pm Ray Lane on the line. "Thank you for joining us. This board of directors cares deeply about HP, and we are deeply committed to the future of this iconic company."

    • 4:06 pm Okay we're on -- Steven Fieler from HP is on the line, as are Ray Lane, new CEO Meg Whitman, and CFO Cathy Lesjak.

    Source: HP CEO change conference call | This is my next liveblog
  2. #2  
    That's not actually a full transcript, but more of a summary.
  3. cgk
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    #3  
    Stronger statements than I expected - basically WebOS is dead.. it's not coming back (barring some miracle licensing deal) Whitman has been on the board for eight months, for all we know, she was all for killing it and spinning off the PSG, so it's business as usual...
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    #4  
    • 4:15 pm It sounds like things are status quo for PCs and webOS.... which is to say things are still completely up in the air.

    • 4:14 pm "We continue to investigate options to recognize the value of webOS software."

    • 4:14 pm "With PSG, we expect the board to make a determination by the end of the quarter."

    • 4:14 pm "The current plan includes the spinoff of PSG and the discontinuation of TouchPad and webOS products."
    How far does the stock have to fall before they realize they're going in the wrong direction?
  5. #5  
    This reminds me of that scene from Michael Clayton, practicing lines in front of the mirror.
  6. #6  
    this HP/webOS thing is far better than any TV novella. Now it's time for evil stepmother to come in.
  7. #7  
    Wow... Is HP really dead? If they are essentially going to tow the line that Leo did, then why get rid of him? They obviously believe in his strategy.

    Leo was just a scapegoat.
    The vision was, and is, still obviously entrenched within HP.

    They think that they can just go into being a world class service organization by merely dumping their hardware divisions and proclaiming to the world "HP is here for all your technological service needs!". It should be pretty clear to any rational person that they needed to build up their service division THEN phase out their hardware over time.
  8. #8  
    ha! They fire a guy only to continue in his footsteps. I can't believe they think it was how it was said and not what was said. Hp is going under bad.
  9. #9  
    Even if HP keeps the PC hardware, I think they won't make any more webOS device.
  10.    #10  
    I don´t know if HP realize that the tablets global sales are going to grow 260% in this year, reaching 63 million units sold for 2012, according to Gartner.

    (Original information tweeted in spanish, related to el país spain daily news)

    and you can find that info here as well:

    http://www.forbes.com/sites/briancau...tablet-market/
    Last edited by akitayo; 09/22/2011 at 10:55 PM.
  11. cgk
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    #11  
    Quote Originally Posted by akitayo View Post
    I don´t know if HP realize that the tablets global sales are going to grow 260% in this year, reaching 63 million units sold for 2012, according to Gartner.

    (Original information tweeted in spanish, related to el país spain daily news)

    and you can find that info here as well:

    Chart Of The Day: Apple Still Has No Rival In Tablets - Forbes
    But what's changed since last week? last week, Lane and the CTO were saying that HP is simply incapable of building tablets that can compete with the Koreans. So 63 million units might be sold but clearly HP thinks that it can't sell enough of them at a profit to make it worth their while.
  12.    #12  
    Quote Originally Posted by CGK View Post
    But what's changed since last week? last week, Lane and the CTO were saying that HP is simply incapable of building tablets that can compete with the Koreans. So 63 million units might be sold but clearly HP thinks that it can't sell enough of them at a profit to make it worth their while.
    There are some ways to spread the break even point. If HP want to get the Initial investment from the very begining , they can´t compete, but if they spread it through certain time and calculates it for a lower price unit, the consumer can have a better priced tablet.

    Of course it will depend on replacing the plastic with some metal instead, including a sd slot, a rear camera, a better dual-core processor and not necessary the magnetic hardware for wireless charging. IMHO not everybody want it. This way HP will avoid to have a fat tablet.

    A free Google-like turn by turn is maddening. Other software apps: Google Goggles, Google Sky, and Bar Code Scanner.
  13.    #13  
    Now you can download the full official HP conference call transcript from this link:

    http://phx.corporate-ir.net/External...xUeXBlPTI=&t=1
  14. #14  
    Quote Originally Posted by akitayo View Post
    Of course it will depend on replacing the plastic with some metal instead, including a sd slot, a rear camera, a better dual-core processor and not necessary the magnetic hardware for wireless charging. IMHO not everybody want it. This way HP will avoid to have a fat tablet.
    No, it won't. Metal cases are overrated. The major reason the iPad has a metal backing is aesthetics. There are many composites that are far stronger and lighter than the iPad's aluminum, and composites allow much better transmission and reception of radio waves.

    The Touchpad's thickness has nothing to do with the plastic back, and everything do do with poor use of available space. Were the touchpad designed with a single PCB and a custom sized battery, it could be the same thickness as the iPad 2.

    For proof, we need only look at the Galaxy Tab 10.1. It's actually thinner than the iPad 2 and it has a fully plastic case.

    A metal case makes induction charging impossible. Induction charging is one of the massive benefits of WebOS devices. It's also one of the few market differentiators WebOS products have. I personally know half a dozen TouchPad owners, all of them love the induction charging.

    I could care less if a WebOS tablet is a few mm thicker. I gladly take a table that is 2 or 3 mm thicker if it included a full sized USB port or two, USB host, HDMI out, and a full-sized SD card slot.
  15.    #15  
    Quote Originally Posted by Toasters View Post
    No, it won't. Metal cases are overrated. The major reason the iPad has a metal backing is aesthetics. There are many composites that are far stronger and lighter than the iPad's aluminum, and composites allow much better transmission and reception of radio waves.

    The Touchpad's thickness has nothing to do with the plastic back, and everything do do with poor use of available space. Were the touchpad designed with a single PCB and a custom sized battery, it could be the same thickness as the iPad 2.

    For proof, we need only look at the Galaxy Tab 10.1. It's actually thinner than the iPad 2 and it has a fully plastic case.

    A metal case makes induction charging impossible. Induction charging is one of the massive benefits of WebOS devices. It's also one of the few market differentiators WebOS products have. I personally know half a dozen TouchPad owners, all of them love the induction charging.

    I could care less if a WebOS tablet is a few mm thicker. I gladly take a table that is 2 or 3 mm thicker if it included a full sized USB port or two, USB host, HDMI out, and a full-sized SD card slot.
    Yes to distribute the components in a better way as you said is a better way maybe to make it thinner, however I remember that someone in HP said that the touchpad was not thicker for the induction charging component.

    I know the induction charging is one of differentiations of the device and I like it as you do, but does everyone like it or needed it as we do ?

    About the back cover and frame both plastic as the TouchPad the general opinion out there was that it looks glossy and cheap and the Samsung galaxy tab doesn´t.
  16. #16  
    Quote Originally Posted by akitayo View Post
    Yes to distribute the components in a better way as you said is a better way maybe to make it thinner, however I remember that someone in HP said that the touchpad was not thicker for the induction charging component.

    I know the induction charging is one of differentiations of the device and I like it as you do, but does everyone like it or needed it as we do ?

    About the back cover and frame both plastic as the TouchPad the general opinion out there was that it looks glossy and cheap and the Samsung galaxy tab doesn´t.
    If induction charging doesn't make it thicker and doesn't cost much, why get rid of it? Why even make it an option?

    Palm and HP always have made it an option of sorts, in that the inductive charger (the expensive part) has always been sold separately.

    Further, hardware component options tends to make devices thicker and heavier. For instance, the main reason few PC laptops are as thin as Apple's Air is because most PC's are built using a component model allowing various modules for wifi and the like. The Air is built with most of the hardware decided by Apple and very few options.
  17. cgk
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    #17  
    Quote Originally Posted by akitayo View Post
    There are some ways to spread the break even point. If HP want to get the Initial investment from the very begining , they can´t compete, but if they spread it through certain time and calculates it for a lower price unit, the consumer can have a better priced tablet.

    Of course it will depend on replacing the plastic with some metal instead, including a sd slot, a rear camera, a better dual-core processor and not necessary the magnetic hardware for wireless charging. IMHO not everybody want it. This way HP will avoid to have a fat tablet.

    A free Google-like turn by turn is maddening. Other software apps: Google Goggles, Google Sky, and Bar Code Scanner.
    But that's an accounting and manufacturing answer - that doesn't answer the cultural and organisational question - that the people at the top don't think they can compete so they will not.
  18. #18  
    Quote Originally Posted by CGK View Post
    But that's an accounting and manufacturing answer - that doesn't answer the cultural and organisational question - that the people at the top don't think they can compete so they will not.
    I agree that this is the problem, but it is simply bizarre that HP's leadership believes they cannot compete against the Koreans (read: Samsung). How is that possible?

    HP is a massive, vertically integrated consumer electronic manufacturing company. They make computers, printers, cameras and all manor of other devices. They are very competitive on price and features. Yet for some reason they don't believe they can make competitively priced tablets?

    The only possible rationalization for that belief is the fact that Samsung does manufacture most of the core components in many of their phones and tablets. They manufacture the most expensive parts, ARM processors, flash memory and screens, so presumably receive the best pricing possible on those components.

    Here's where the HP argument starts to slip. Samsung does not make the processor for some of their tablets and phones. The Galaxy Tab 10.1 uses an Nvidia processor, some of their phones use others. We only need look to Apple and Amazon to find companies that make none of those core components, yet are very competitive on price and features.

    These statements by HP's leadership seem to be little more than a cop out to justify the poor initial sales of the Touchpad. Had HP priced it competitively from the start - say $299 & $349 - added a small handful of features (full sized USB with host, sd card slot , rear camera, photo managing software, etc) the Touchpad would likely have seen impressive initial sales.

    Yes, that would be pricing it very close to cost, but costs would drop as production went further. They could also have recouped revenue by arranging a share of e-book and media purchases from Amazon, NetFlix or both. Selling a tablet near cost, building up the user base and recouping the investment from recurring revenue shares of media sold to the device's users is how both Apple and Amazon have made bucket loads of money.
  19. cgk
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    I don't think it is the pricing - I think culturally HP is simply not geared up to develop cool tech that creates a buzz, they can turn out grey boxes and a few nifty laptops but beyond that nobody seems to know what to do or how to fix the problem, so they want to retreat into the enterprise sector where cool doesn't matter.
  20.    #20  
    Quote Originally Posted by CGK View Post
    I don't think it is the pricing - I think culturally HP is simply not geared up to develop cool tech that creates a buzz, they can turn out grey boxes and a few nifty laptops but beyond that nobody seems to know what to do or how to fix the problem, so they want to retreat into the enterprise sector where cool doesn't matter.
    Totally agree with you.
    HP have made great concepts like showed on the videos below, I don´t know why they take a lot of time to launch them to the real world . Imaging webOS on those hardware concepts., that will be REVOLUTIONARY.

    The HP Flex was made for the Real Steel movie.

    Videos:

    HP Future Tech: HP Flex


    HP Future Tech: HP Curve



    P.S The flexible HP tech already exists and was presented by Phil Micknney early this year.

    or maybe webOS on a oncept smartphone like this one: ( If HP decided to come back to that arena again)

    Last edited by akitayo; 09/25/2011 at 11:49 PM.
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