Like many companies in modern America, the board of directors is made up of stock holders who are only concerned about the value of their stock, and what other stock holders think. This attitude leads to a "let's grab all the money we can now" mindset and ignores any long term strategy as a pie-in-the-sky idea and not worth considering.
Originally Posted by tholap
Many, many companies in the US have in the past serveral years, sacrificed their reputation to make more money in the short term. Dell did it when they decided "number 1 in tech support" was no longer important and shipped everything to India to save a buck. And many companies have followed that example. So, a major player like HP making a really really stupid decision to not only tank a product they spent billions on after only a few months on the market, but to then turn around and sell it at the cost of the parts, doesn't really surprise me. Makes me sad and angry about what's happend to American bussinesses (sp?) (and the people that run them) in general, but doesn't surprise me.
What I can do is laugh about the fact that they made what appears to be a decision made durring a panic attack "oh no! what will the stock holders think when we tell them it's not selling very well?!?!", and it caused them to lose far more stock value than they would have if they let it go for a year then announced a phase out.
Of course what anyone with any brains is thinking is "why the **** didn't they just lower the price and undercut everyone but still make a profit?". They could have achieved nearly the same result as the current situation, and used the high sales figures to beat up any board member who still insisted it was a bad idea. How does someone THAT brain dead wind up in such a high position in the company? How can a board made up of people who had enough money to buy a huge amount of stock, be filled with such fools?
It has become impossible to give them the benifit of the doubt and say "we don't know everything, maybe they have a plan".