Hewlett-Packard has done what some thought to be impossible: discontinue its TouchPad and drastically alter its path to the future. Some say that the move has been a long time coming and should help the company get some of the issues out of the firm. However, there are others that are confused by the move, especially HP’s decision to consider spinning off its PC business. After all, PCs have been integral to the company’s operation all these years. And now, to think that it’s getting rid of that key sector, is a major surprise. But when it’s all said and done, when the move is taken with a firm grasp on how the market operates, it’s tough to see any good come out of HP’s decision. The new strategy seems contrived and lacking in vision for what the future might hold. In many ways, the strategy is just plain wrong. Here’s why HP’s decision to ditch the TouchPad and potentially spin off its PC business is all kinds of bad, and when it’s all said and done, do nothing to actually help the firm.
of
The PC Idea One of the most surprising moves from HP was its decision to possibly spin off its PC business, an operation has been the backbone of its operation for years, and a key component in its relationships with enterprise users. By spinning it off now, there’s no telling what the future might look like for the company.
It’s A Slash-And-Burn Policy After announcing disappointing financial results, HP could have done more than just initiate a slash-and-burn policy across its business. Yes, there is trouble at HP, but why should the company disintegrate so many facets of its operation? More innovation and product-development is needed at HP, not an outright destruction of many core pieces of its business.
There’s No Vision All HP is saying right now is that it wants to focus its business around the operations that are most profitable. The company specifically says that software and solutions could be integral to its plans. But is that really all HP has planned? In order for the company to be successful, it needs to have a vision of what the future looks like and what it can do to get there. By eliminating several divisions and only focusing on a handful of others, it doesn’t appear to be doing that.
Expect More Acquisitions Let’s face it: HP’s software and solutions operations aren’t exactly the best in the marketplace. There are some gaping holes in its operation that it will need to address. The only problem is, times are tough at HP, which means acquiring other companies seems to be its best bet. Unfortunately, investors who have been selling the company’s stock as of late don’t seem too happy to hear that.
It’s Giving Up A Key Market Yes, HP might have failed in the mobile market, and yes, its acquisition of Palm might have been a bad idea, but by discontinuing its mobile hardware and all but turning its back on WebOS, the company is giving up a prime market that’s set for growth in the coming years. The mobile space means everything right now. When will HP acknowledge that?
Tablets Will Be Lost As noted, HP has decided to discontinue its TouchPad. By doing so, the company is leaving the tablet market. That’s a huge mistake. The iPad has been dominating that space for just a couple years. Prior to that, tablet revenue was practically zero. HP had an opportunity to at least play in a fledgling market that, over the long-term, it could succeed in. But it gave that up.
How Will Consumers Respond? HP might have hurt its reputation with consumers by making its latest move. Let’s face it: when it comes to the TouchPad, only those people that love HP products bought it. The same is true with the Pre and Pixi. By discontinuing the devices so abruptly, and spinning off its PC business, HP has annoyed customers that were trying to be loyal to it. Now, by spinning off its PC business, there’s no telling what the future of that operation will look like. HP might have just lost the consumer market.
Can Solutions Win the Day? It’s understandable why HP wants to focus its efforts on software solutions. For one, its CEO has focused much of his time and effort in that market. In addition, the company has long been an enterprise provider, which makes its renewed focus there make some sense. But there’s still a big question mark over the possibility of solutions carrying an entire business. The enterprise is littered with the remains of companies that have tried and failed to do just one thing really well. Will HP be another?
No Future for WebOS HP hasn’t gone so far as to say that WebOS is dead, but let’s face it: the operating system’s days are numbered. Recent reports suggested WebOS could make its way to cars and appliances, but is that something that shareholders are really after? WebOS was supposed to be the operating system to save HP. Now, it’s the operating system that the company has forgotten.
A Wasted Palm Acquisition When HP acquired Palm last year for $1.2 billion, there were critics, analysts, and shareholders that thought it was a mistake. But all along, HP said it wasn’t. Now that it has destroyed its mobile business, it’s clear that the Palm acquisition was a huge mistake. And all that cash could have been used more effectively elsewhere. Hopefully HP won’t make the same mistakes all over again in the coming months.
Intel Technology Provider Program
Intel Technology Provider Program (ITP) helps resellers better understand Intel products which power the technology they sell, and enables value-add services such as remote manageability or anti-theft tracking. Learn More
WindowsForDevices.com
WindowsForDevices.com is the comprehensive news site covering Windows embedded technologies. Visitors get news, technical white papers, opinion columns and extensive directories covering the products and companies in the marketplace. Click Here
Hewlett-Packard 
10 Key Ingredients That Have Made Apple So Successful
10 Reasons RIM`s New CEO Won`t Fix the Company
Eight IT Jobs Skills That Win Six-Figure Salaries
Social Media Best Practices to Land that Dream Job
Channel Executives On The Move: 2012
Why SOPA Is Such A Big Issue
See All Slideshows
