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Sounds like HP is doing what IBM did not too long ago. Getting out of commodity markets and into markets where profits are higher and it's easier to differenti
by bradfa 15y ago
Sounds like HP is doing what IBM did not too long ago. Getting out of commodity markets and into markets where profits are higher and it's easier to differentiate yourself from the masses. IBM is still strong in what they do even though they got out of the PC business and pretty much everything else consumer focused. Now HP is doing the same thing and they're getting torn a new one.
Plus, figure that even if the consumer business made about $800 million last quarter (between PCs and printers), selling those businesses off for a couple billion, putting the cash in the bank, then laying off all the employees (or transferring them to the buyer) will fill the bank account, reduce head count (and expenses), and allow for more focus on less products that each have higher margins.
Putting it that way, it sounds like combining the Apple and IBM business models to me. Simplify and specialize, focused on the enterprise (where the money is these days).