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    Nothing mentioning WebOS

    As I Stood Alone Supporting HP Keeping PC Biz ..It Looks like HP Might Keep It – Sanity is back at HP | Unfiltered Opinion From Silicon Valley

    As I Stood Alone Supporting HP Keeping PC Biz ..It Looks like HP Might Keep It – Sanity is back at HP
    John Furrier | October 12th
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    Hewlett-Packard is considering not getting rid of the PC business unit according to the Wall Street Journal.

    HP is getting some solid leadership with Meg Whitman after some sanity is showing there at HP’s ivory tower. I was the only one jumping up and down saying don’t sell the PC business. Even Apple’s new CEO Tim Cook gave a gesture of the same advice.

    It’s so simple for HP

    1. Keep PC Bus: leverage value chain to get new bill of materials (BOM) under $99 for tablet and phone
    2. Keep WebOS: don’t be dummies – WebOS not good it’s great OS. Even top Apple iPad developers privately told me that it’s really good and the only threat to Apple’s iPad franchise
    3. Tie in cloud to device / hardware
    4. “everything-else as a service”: every other product get into the cloud or service model asap – infrastructure, platform, and software/apps
    5. wrap all kinds of services around it like software etc…
    6. watch the direct and indirect revenue just start pouring in….

    Here is the story from the Wall Street Journal

    Hewlett-Packard Co. is rethinking its plan to spin off its personal-computer division, as fresh analyses show the costs might outweigh the benefits, according to people familiar with the matter.

    Newly-installed chief executive, Meg Whitman, is crunching the numbers of the proposal by her predecessor, Leo Apotheker, to split the world’s biggest computer company in two.

    Neither Ms. Whitman nor the company’s board have made a final decision, according to some of the people. She has said publicly that she would like to make a decision by the end of October.

    The Palo Alto, Calif., company said in August that it was considering strategic alternatives for its PC business, including spinning off the division into an independent company.

    But the new analyses, which Ms. Whitman and other executives are now studying, suggest the company is better off keeping the division, which contributed $40.1 billion in revenue and $2 billion in operating profit in H-P’s last full fiscal year, these people said.

    H-P Chief Executive Meg Whitman, who took over the top job last month, hasn’t made a final decision about whether to spin off the PC business. Above a building at Hewlett-Packard’s headquarters campus in Palo Alto, Calif.

    In particular, separating the PC division would significantly diminish H-P’s buying power with component makers because H-P would lose economies of scale. It could complicate H-P’s supply chain and decrease profit margins on some products, the analyses suggest.

    “If you lose purchasing power and other advantages, then a spinoff isn’t worth it,” one of these people said.

    Some H-P executives still favor a spinoff, one of the people familiar with the matter said.

    “The analysis is underway now,” an H-P spokeswoman said. “We said we would explore all options and that Meg would make a decision based on the data.”

    Mr. Apotheker announced the possible PC separation along with several other moves in August. “Our default option is to see if we can spin this business off to our shareholders,” he said in an interview then.

    Ms. Whitman has served on H-P’s board since January, and in that capacity approved the decision to seek a spinoff.

    In advertisements, the company called a spinoff “our preferred course.”

    Going ahead with a spinoff would present several challenges for the remaining parts of H-P. For instance, H-P would continue to make server computers, but would likely lose the price advantage that comes from buying microprocessors and hard drives in bulk.

    While H-P is the biggest seller of both types of machines, it sells vastly more PCs—14.9 million in the second quarter of 2011 compared with 720,000 servers, according to researcher Gartner Inc.

    There’s a precedent for a profit hit: International Business Machines Corp. said that profit margins on its servers fell following its decision to exit the PC business. Profit margins for the business group that includes servers fell from 41.6% in 2004, the last full year IBM was in the PC business, to 37.7% in 2006, the first full year it wasn’t, according to regulatory filings. By 2010, margins for the group had rebounded somewhat 38.5%.

    Some at H-P still argue, people familiar with the matter said, that separating the PC business would boost the company’s overall profit margins, and possibly its share price, which has dropped 38% since the beginning of 2011.

    In one scenario, H-P and an independent PC company could strike a deal allowing them to buy components together, which could lock in lower costs for the H-P’s server business.

    H-P studied the implications of getting out of the PC business under Mr. Apotheker, too. But some people close to the company said the former chief, whose background was in the software business, seemed predisposed to getting rid of it.

    Mr. Apotheker justified a spinoff by arguing the PC division was on a different track than the rest of the company, in particular its focus on consumers. He said developing cutting-edge consumer devices requires funds that within H-P had a higher return when invested in other areas.

    Mr. Apotheker didn’t immediately respond to an email seeking comment.
    Palm III->Palm IV->Palm V->M130->Tungsten->Treo 270->Treo 600->Treo 700->Palm Pre Plus->FrankenPre 2->Pre 3 & TouchPad
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  2. gbp
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    Sounds good. They (HP's board of directors) should realize that Apple makes 30-50 % margins on their phones / tablets. If they don't have a stomach for putting a fight they will loose the company all together, even the printers and services business.

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