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HP Shifting Resources from PCs to Tablets

By - Source: CNET | B 25 comments

HP is shifting some of its resources away from a declining PC market.

During the Morgan Stanley Technology, Media & Telecom Conference on Tuesday, Hewlett-Packard CEO Meg Whitman said that the company is shifting resources from PCs to tablets. She said the market moved extremely fast to tablets and smartphones, and HP now needs to manage that transition.

"And it's not that HP didn't try to manage that transition -- they did with the acquisition of Palm," she said. "But as you know, under the previous [management], that took a little detour to nowhere."

HP placed all bets on the webOS operating system when it purchased Palm for $1.2 billion back in 2010. The company planed a long string of smartphones, tablets and PCs based on the platform once the first tablet, the TouchPad, wowed customers. But that never happened, and the doomed device was discontinued less than two months after it hit the market.

In August 2011, then-current Leo Apotheker announced that the company would dump its plans for webOS and throw the non-licensed components into the open-source community. He also mentioned that the company may spin off its personal computer business.

"We believe this bold action will squarely position HP in software and information to create the next-generation information platform," Apotheker said. "This is about a transformation to position HP for a new future and driving shareholder value."

Apotheker was replaced by Meg Whitman as HP's CEO a month later. "I think that what you have at work here, and which may be for the good of the company, is someone who very much has a bit between her teeth and wants to do this job and take on this challenge," Golden Gate University Dean Emeritus Terry Connelly said. "In all fairness, that's what Hewlett Packard needs."

This week during Mobile World Congress 2013, HP revealed a 7-inch Android tablet it plans to sell for $170 USD, a pricetag that's far less than Amazon's own Kindle Fire HD and Google's Nexus 7. It's even less than Apple's overpriced 7-inch tablet, the 7-inch iPad mini. It's also significantly less than what HP charges for its business-oriented Windows 8-based ElitePad 900.

That said, HP isn't bailing out of the PC industry, but merely shifting some its resources away from a declining market to invest more in a lucrative one: tablets and smartphones. "Innovation is not dead at this company," she said. "So, what I did is I increased RD spending...we have to get these products that are close to market to market fast."


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Top Comments
  • 15 Hide
    spentshells , February 27, 2013 6:12 PM
    They are so far out of touch they make dell seem edgy and modern
Other Comments
  • 9 Hide
    g-unit1111 , February 27, 2013 6:10 PM
    Then why did they acquire and kill off Palm? I guess that's a mystery for the ages. :ange: 
  • 9 Hide
    the_crippler , February 27, 2013 6:12 PM
    g-unit1111Then why did they acquire and kill off Palm? I guess that's a mystery for the ages.


    Because they ended up fumbling it too badly to be profitable?
  • Display all 25 comments.
  • 15 Hide
    spentshells , February 27, 2013 6:12 PM
    They are so far out of touch they make dell seem edgy and modern
  • 1 Hide
    g-unit1111 , February 27, 2013 6:13 PM
    Quote:
    Because they ended up fumbling it too badly to be profitable?


    Or maybe they just didn't want competition a la Dexter.

    Quote:
    They are so far out of touch they make dell seem edgy and modern


    :lol:  :lol:  :lol:  :lol: 
  • 5 Hide
    TechnoBowl , February 27, 2013 6:20 PM
    Meg sucks!
  • 5 Hide
    Onus , February 27, 2013 6:46 PM
    HP has forgotten that they are first and foremost a printer company. They have diluted their brand so badly it is likely it will be washed away.
  • 6 Hide
    wlachan , February 27, 2013 6:47 PM
    Right... is that the reason my Touchpad 32GB is not being supported now? IMHO, WebOS is much more user friendly than Android from my consumer POV. Anyway, I have decided to stay away from anything HP since they don't give a xxxx about their customers. They don't even know what they are doing.
  • 0 Hide
    tobalaz , February 27, 2013 7:01 PM
    HP makes solid wireless printers that are easy to use and set up.
    HP made a decent computer once, and still probably do.
    I just don't care how they screwed my aunt out of a 5 year warranty on her laptop because they outsourced the support staff, voided current warranties then as a "peace offering" told her they wouldn't support her laptop which was under warranty but would give her $100 off a new one. Before that she only bought HP and up until that point they had excellent customer service and repair support.
    They REALLY tried hard to drive away their loyal customers, and that's pretty darn sad because they made good printers and pcs for so long.
  • 2 Hide
    twelve25 , February 27, 2013 7:01 PM
    onusHP has forgotten that they are first and foremost a printer company. They have diluted their brand so badly it is likely it will be washed away.


    You know nothing about the origins and history of HP if you think of them as a printer company.
  • 2 Hide
    twelve25 , February 27, 2013 7:03 PM
    So instead of fighting to keep first place in PCs, they decide to tack on as the caboose in a crowded tablet market? Smart move! Maybe if they are really innovative they can make it into the top 20 tablet companies with a 5% marketshare!
  • 1 Hide
    ananke , February 27, 2013 7:10 PM
    g-unit1111Then why did they acquire and kill off Palm? I guess that's a mystery for the ages.


    Because, they had to offset the profit of selling land to Apple in fiscal year 2011 with deferred capital loss from the Palm acquisition. Besides, Palm's IP could been sold to other parties in future, in order to reverse the loss in time of lower taxable profits, i.e. like in year 2013, when projected revenue from PC will be down....
    Nobody ever cared about Palm.
  • 0 Hide
    punahou1 , February 27, 2013 7:18 PM
    I'm confused - I thought they wanted out of the tablet business?
  • 6 Hide
    twelve25 , February 27, 2013 7:22 PM
    punahou1I'm confused - I thought they wanted out of the tablet business?


    That was two or three CEOs ago.....
  • 1 Hide
    XZaapryca , February 27, 2013 7:57 PM
    onusHP has forgotten that they are first and foremost a printer company. They have diluted their brand so badly it is likely it will be washed away.

    I'm sure people said the same thing when HP, the electronic instrumentation company, got into printers. Evolve or die. Applies to more than just animal species.
  • 4 Hide
    InvalidError , February 27, 2013 8:28 PM
    So HP is bailing out of a market they were semi-successful in to re-invest itself in a market where they have for the most part failed in.

    Gotta love how top execs get paid big bucks to effectively ruin a company.
  • 1 Hide
    hero1 , February 27, 2013 9:24 PM
    Oh boy. Get WebOS. Screw it up. Make it open source. Sell it to LG. re-enter the market. How about the quit this drama and stick to PCs. Their quality and customer service suck big time. How in the world are they going to compete with Samsung, Apple and others? Time will tell where this takes them.
  • 0 Hide
    p05esto , February 27, 2013 9:54 PM
    hahahaha, OMG. HP, you are retarded. You stand almost no chance in the tablet area and if you think tablets will ever be work machines like a desktop or laptop you are nuts!!! Imagine an emplyee getting to work in the morning at their cubicle and in place of a keyboard/mouse/20" monitor is a little 10" tablet, LOL. I can't believe how far HP has fallen, it's like they found total idiots to run the company the last few years. Shifting from PCs to tablets, hahahahahahahaha
  • 1 Hide
    Onus , February 27, 2013 9:56 PM
    Yes, HP made top-quality instrumentation, and brought that same quality and service to their printer business; as far as PCs are concerned, they became a printer company. Laserjets were tanks; they just worked, and were unstoppable. Now, they've forsaken all of that. Their "Universal Printing" drivers are a universal failure in managed environments. They're waffling, back and forth, in and out of markets; do they even know what they're doing, or why?

    Hmmm, about to get another spammer-stain on my banhammer...
  • 1 Hide
    p05esto , February 27, 2013 9:57 PM
    spentshellsThey are so far out of touch they make dell seem edgy and modern


    Um, Dell is awesome. Their monitors CAN'T be beat, their servers are the absolute best and their Precision workstation grade laptops are also THE most powerful out there. Dell may not be edgy I guess (don't know what that even means) but their high end products are the very best out there.
  • 0 Hide
    InvalidError , February 27, 2013 10:59 PM
    p05estoif you think tablets will ever be work machines like a desktop or laptop you are nuts!!! Imagine an emplyee getting to work in the morning at their cubicle and in place of a keyboard/mouse/20" monitor is a little 10" tablet, LOL.

    Two words: KVM dock.

    The convenience of mobility with few if any compromises.

    Another option some manufacturers are exploring is 20-24" tablets that can also be used as a display for an external PC or other device.

    Intel's own future plans also consider integrating the PC into displays and some PC/display manufacturers are starting to swing in that direction. We may be going back to the old Compaq/Apple all-in-one style.
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