Friday, August 19th 2011

HP Kills TouchPad, Could Spin Off PC Business

PC major HP announced its decision to scrap TouchPad, the company's flagship tablet device. But in a move that could rattle the OEM industry, there are feelers that HP might spin off its PC business. This is similar to what IBM did with its PC division, resulting in the subsequent creation of Lenovo. This move could take effect as early as by the end of this year. This is one of the most extreme makeovers in the company's 72-year history. It is sought to increase the company's long-term competitiveness against rival IBM.

It is not known if the decision to spin off the PC division will affect any of the 300,000 jobs HP maintains worldwide. HP's PC division (that sells desktop PCs, notebooks, and netbooks and related support services), is its biggest revenue generator, but also it's least profitable division. Whatever the reasoning behind this, the decision is a 180 degree turn from last decade, when HP spent no less than US $24 billion to acquire Compaq Computer, on its road to become the biggest PC vendor.

Source: MSNBC
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35 Comments on HP Kills TouchPad, Could Spin Off PC Business

#1
Batou1986
so Compaq is making a comeback lol
Posted on Reply
#2
FreedomEclipse
~Technological Technocrat~
by: Batou1986
so Compaq is making a comeback lol
Actually no their not..... CompaQ merged with HP back in 2001. If HP were to spin off the PC business. CompaQ would also be gone.
Posted on Reply
#3
pr0n Inspector
This is Dell:
http://content.dell.com/us/en/corp/d/secure/fiscal12q2_release.aspx
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.
This is HP:
http://h30261.www3.hp.com/phoenix.zhtml?c=71087&p=irol-newsArticle&ID=1598003
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.
There's no money in the PC market. Fact.
Posted on Reply
#4
micropage7
i guess its the time for HP to get focus on other like printer and other stuff
Posted on Reply
#5
wickerman
I think HP should go all in with webOS as a software package for mobile devices. With google buying up motorola's mobile division, I'm sure a lot of cell phone/tablet/pmp makers are going to be a bit upset and interested in finding a new alternative, lest they find themselves at the mercy of mighty google who will no longer really need them. Plus with the touchpad firesale, there will suddenly be hundreds of thousands of webOS devices out there already establishing the brand. They really could take advantage of this and turn things around and become a successful mobile device software provider.
Posted on Reply
#6
TheGuruStud
I snagged a couple of the few touch pads remaining yesterday :)
Posted on Reply
#7
wickerman
by: TheGuruStud
I snagged a couple of the few touch pads remaining yesterday :)
6 for me lol :laugh:
Posted on Reply
#8
WarraWarra
For those that is interested there is a few guys trying to port android to the HP touchpad.
"TouchDroid"

Anyone can do it, take a SDK version like galaxy tab or CM7, use the current linux kernel zImage, add dual boot then edit and or replace a few /system/lib + /system/lib/hw from similar hardware and that is about it. :rockout:
Just make sure you have a good init file for the HP Touchpad.

O by the way why is everyone so excited about less than USD$87~$130 touchpads and mobile phones there is 30 or more that falls into this category and most have actual DVB-T and many more features than what Apple would ever dream off + not limited by USA broadcasting law, tax complications and other bogus excuses.

Technologically we are at the bottom of the snail slime list of country's here.
Posted on Reply
#9
xtremesv
Difficult times are coming for the PC.

As I've already predicted, within a decade we'll be playing Crysis V on an iPad 10 using some sort of dedicated cloud service... wireless mirroring will be enough to watch the game in its full glory on an 80" AMOLED 3D TV. Of course, desktop computing won't die but it's gonna be considered retro.

If I were you, I wouldn't buy stocks from any company focused on PC's or parts of them.
Posted on Reply
#10
pr0n Inspector
by: WarraWarra
For those that is interested there is a few guys trying to port android to the HP touchpad.
"TouchDroid"

Anyone can do it, take a SDK version like galaxy tab or CM7, use the current linux kernel zImage, add dual boot then edit and or replace a few /system/lib + /system/lib/hw from similar hardware and that is about it. :rockout:
Just make sure you have a good init file for the HP Touchpad.

O by the way why is everyone so excited about less than USD$87~$130 touchpads and mobile phones there is 30 or more that falls into this category and most have actual DVB-T and many more features than what Apple would ever dream off + not limited by USA broadcasting law, tax complications and other bogus excuses.

Technologically we are at the bottom of the snail slime list of country's here.
Which reminds us, again, that Gingerbread is clunky on tablets and Honeycomb is still closed source. HAIL OPENNESS!
Posted on Reply