Author Topic: HP quits consumer market (Read 1764 times)

bloody000 · « **on:** August 19, 2011, 06:58:39 AM »

http://arstechnica.com/business/news/2011/08/hp-may-get-out-of-pc-business-focus-on-software-services.ars
http://arstechnica.com/gadgets/news/2011/08/hp-washing-its-hands-of-webos-discontinues-tablets-pre-phones.ars
http://arstechnica.com/business/news/2011/08/does-apotheker-need-an-apothecary-why-hp-is-exiting-the-pc-business.ars

tl;dr : HP is done with consumer stuff like PC and webOS.

Freedom Kira · « **Reply #1 on:** August 19, 2011, 08:39:48 PM »

Huh, that's too bad. In the world of pre-built computers, HP is a decent brand. Personally I rank them above average.

JoonasTo · « **Reply #2 on:** August 19, 2011, 08:50:33 PM »

Their PCs are good.
Their shipalong software is complete garbage.

But at least they have good support.

fohfoh · « **Reply #3 on:** August 19, 2011, 10:07:05 PM »

Depends how you look at it. I view Dell and HP as equals in the Desktop and Notebook market. Which isn't saying much.

In any case, HP should be a damn good buy once its stock stops shitting to the bottom. HP's other departments are WAY more profitable than their PCs.

bloody000 · « **Reply #4 on:** August 20, 2011, 06:10:12 AM »

Dell:
http://content.dell.com/us/en/corp/d/secure/fiscal12q2_release.aspx

Quote

Business Units and Regions:

Large Enterprise had $4.6 billion of revenue, up 1 percent from a year ago on strong demand for servers and services. Operating income was $448 million, or 9.8 percent of revenue. Enterprise solutions and services revenue was $1.9 billion, a 3 percent sequential increase. Revenue from client products grew 1 percent for the year and 4 percent sequentially.

Public had record operating income of $484 million or 10.9 percent of revenue. Revenue was $4.5 billion, up 18 percent sequentially and down 3 percent for the year. Enterprise solutions and services revenue was up 7 percent sequentially. Client product revenue increased 34 percent sequentially.

Small and Medium Business had revenue of $3.7 billion, up 5 percent. Operating income was $404 million or 10.9 percent of revenue. Enterprise solutions and services revenue was up 16 percent, driven by a gain in servers of 17 percent; services of 17 percent, and storage of 11 percent.

Consumer revenue was $2.9 billion, a 1 percent increase, with revenue for laptops and desktops up 4 percent. Operating income was $73 million or 2.5 percent of revenue.

Growth countries outside of the U.S. and Canada, Western Europe and Japan increased revenue 14 percent over the previous year and now account for 28 percent of Dell’s total revenue. Specifically, India and China were up 21 and 20 percent, respectively.

HP:
http://h30261.www3.hp.com/phoenix.zhtml?c=71087&p=irol-newsArticle&ID=1598003

Quote

Business group highlights

Services revenue grew 4% year over year with a 13.5% operating margin. HP also announced the appointment of John Visentin as the new executive vice president for Enterprise Services reporting to Apotheker.

Enterprise Servers, Storage and Networking (ESSN)revenue grew 7% year over year with a 13.0% operating margin. Networking was up 15%, Industry Standard Servers was up 9%, Business Critical Systems was down 9%, and HP Storage was up 8%. 3PAR revenue accelerated, with triple-digit year-over-year growth operationally.

HP Software revenue grew 20% year over year with a 19.4% operating margin. HP Software revenue was driven by strong growth in licenses and services of 29% and 30%, respectively.

Personal Systems Group (PSG) revenue declined 3% year over year with a 5.9% operating margin. PSG remains the PC market leader in terms of units, revenue and profit share. Commercial Client revenue grew 9% and Consumer Client revenue declined 17%.

Imaging and Printing Group (IPG) revenue declined 1% year over year with a 14.7% operating margin. Commercial revenue was down 7% year over year with commercial printer hardware units up 1%. Consumer printer hardware revenue was up 1% year over year on 7% unit growth. IPG continued to drive innovation and momentum with digital presses and web-connected printers.

Financial Services revenue grew 22% year over year with a 9.4% operating margin. Financial Services continued to see its strong performance driven by both double-digit growth in lease volume and a healthy improvement in portfolio assets.

fohfoh · « **Reply #5 on:** August 20, 2011, 06:11:46 AM »

Sorry, I meant hardware wise, not company wise.

bloody000 · « **Reply #6 on:** August 20, 2011, 06:20:18 AM »

Quote from: fohfoh on August 20, 2011, 06:11:46 AM

Sorry, I meant hardware wise, not company wise.

I'm adding more info to my first post to point out why they might not want it anymore. the profit is just too low.

bloody000 · « **Reply #7 on:** August 20, 2011, 06:23:12 AM »

OMGWTFBBQ the TouchPad is $99!!!!1111

I'm gonna get it tomorrow. I believe in the the power of community so I'm not too worried about updates and stuff.

Fuck, too late, out of stock everywhere

fohfoh · « **Reply #8 on:** August 20, 2011, 06:27:37 AM »

Quote from: bloody000 on August 20, 2011, 06:20:18 AM

Quote from: fohfoh on August 20, 2011, 06:11:46 AM
Sorry, I meant hardware wise, not company wise.
I'm adding more info to my first post to point out why they might not want it anymore. the profit is just too low.

Heh yeah, ironically, Apple was somewhat the first to slowly move away/minimize damage from the laptops/desktop market. It didn't kill it off per se, but it was the first to really feel the shrink. There were so many articles about it last year and this year. How the iphone, ipad, ipod etc. easily outdo the mb and mbp in terms of margins and volume.

Though that's somewhat unfair and misleading to say. IBM got rid of their computer sub a while back. We now know it as Lenovo.

HOLY SHIT IT'S TRUE! INSTORE OPTIONS FOR THE TABLET FOR SOME RETAILERS ONLY!!!

* fohfoh considers.

chaohellsing · « **Reply #9 on:** August 20, 2011, 06:45:31 AM »

I've never had a good experience with HP.

The Personal Comcrappers aside, their printers, scanners etc. are supposed to be their best products; however, in the past 12 or so years I've had the displeasure of using their software nearly everywhere I went. Jobs, classrooms, offices, houses of family and friends; I got practically a release by release experience with what I consider the cluckiest most user unfriendly software I've ever encountered.

If I need to consult forums to figure out how to do something, the software engineers are severely screwing up.

fohfoh · « **Reply #10 on:** August 20, 2011, 06:47:44 AM »

HP laptops are?/were shit. Their OS is filled with bloat.

@Bloody: IDK about you, but bestbuy is sold out. Futureshop has in-store only. But IDK if this info helps you.

Takeshi · « **Reply #11 on:** August 20, 2011, 06:53:31 AM »

Quote from: fohfoh on August 20, 2011, 06:47:44 AM

HP laptops are?/were shit. Their OS is filled with bloat.

Aren't all laptops bloated with crap? The only reason I waited until cleaning out my HDD is because it took shorter time to backtrack my system than formatting, installing updates, drivers and programs. Though do admit that my newest laptop had a nice feature that disabled the touchpad once a mouse was connected. I miss that since I have to manually disable it everytime I turn it on.

fohfoh · « **Reply #12 on:** August 20, 2011, 06:56:39 AM »

True, but HP laptops in my experience were the last laptops that actually ran as hot as a furnace.

From the outside, pretty hard to destroy. But they imploded easily.

bloody000 · « **Reply #13 on:** August 20, 2011, 07:03:54 AM »

Quote from: fohfoh on August 20, 2011, 06:47:44 AM

HP laptops are?/were shit. Their OS is filled with bloat.

@Bloody: IDK about you, but bestbuy is sold out. Futureshop has in-store only. But IDK if this info helps you.

All my local stores except the Source are OOS. Source say they have two units but could be ghost stock.

Yep ghost stock, it's now OOS too

Xtras · « **Reply #14 on:** August 20, 2011, 08:53:32 AM »

Michael Dell must be having a field day right now. His biggest competitor just folded.

bloody000 · « **Reply #15 on:** August 20, 2011, 09:04:52 AM »

Quote from: Xtras on August 20, 2011, 08:53:32 AM

Michael Dell must be having a field day right now. His biggest competitor just folded.

No.

Freedom Kira · « **Reply #16 on:** August 20, 2011, 10:07:06 AM »

Quote from: fohfoh on August 20, 2011, 06:47:44 AM

HP laptops are?/were shit. Their OS is filled with bloat.

Hmm, not too sure about that. My HP laptop came with Vista installed, which I promptly removed and upgraded to XP (came with an install disc). This was 2.5 years ago. Last year the HDD started having issues; a few bad sectors just wouldn't die. In February or March, I bought an SSD and stuck it in there and installed 7, and now it's the fastest computer I have.

So if Vista was loaded with HP shit, I wouldn't know. But their hardware is pretty decent.

Gamerzhell · « **Reply #17 on:** August 20, 2011, 11:05:38 AM »

Quote from: Xtras on August 20, 2011, 08:53:32 AM

Michael Dell must be having a field day right now. His biggest competitor just folded.

they haven't folded, they are just selling the division, it'll be the same as when IBM sold their pc division to lenovo.

Xtras · « **Reply #18 on:** August 20, 2011, 06:05:45 PM »

Quote from: Gamerzhell on August 20, 2011, 11:05:38 AM

Quote from: Xtras on August 20, 2011, 08:53:32 AM
Michael Dell must be having a field day right now. His biggest competitor just folded.
they haven't folded, they are just selling the division, it'll be the same as when IBM sold their pc division to lenovo.

That's what I mean by folded, not that they went bankrupt, but rather they effectively gave up on it.

They'll lose that consumer trust and the brand loyalty because the product now starts to look shaky to the casual buyer. Yeah, it isn't like there is no competition for the future, but in the immediate aftermath you know Dell's sales are inevitably going to jump since people are going to put their trust in something that to them seems more stable. There is no guarantee that the future of the division is going to go the way of IBM and Lenovo. Each time in corporate history, turmoil is inevitably followed by share loss.

In any case Michael Dell has been taking a few stabs and having a laugh on Twitter/Google+ from what I can see.

bloody000 · « **Reply #19 on:** August 20, 2011, 07:11:05 PM »

Even then consumer PCs will not make much money for Dell. It's a highly saturated commodity market with razor-thin margins.