HP to spin off PC business to focus on enterprise software

179111213

Comments

  • Reply 161 of 253
    melgrossmelgross Posts: 31,901member
    Quote:
    Originally Posted by GQB View Post


    Actually, what's perfectly obvious is that they will simply license WebOS to anyone who wants to use it. They said as much months ago, even before the touchpad crashed and burned.



    And now that it's proven its worth by crashing and burning, it's worth nothing, and no one will be interested. At least, not for phones and tablets.
  • Reply 162 of 253
    melgrossmelgross Posts: 31,901member
    Quote:
    Originally Posted by Dick Applebaum View Post


    Do you really think there is no chance for WebOS?



    I never had any hands on -- but from what I've read and seen, it is a better "Tablet OS" implementation than Android, QNX, WinMobile 7 (or whatever it's called).



    What if HP offered free WebOS licenses for tablets -- with tie-in apps to support their business/cloud services? HP would get to offer "tablet solutions" for its services -- the licensees would get an entre into business sales.



    ... Or HP could just write iPad / iPhone apps.



    I used a Pre for a few days. It was different, but nothing to write home about. It wasn't "discoverable" in the sense that iOS is, and the copy, Android, to a slightly less extent is.



    I haven't played with the tablet, but when it shows up in the remainders bin for $49 I'll likely pick it up. Just read all of the reviews. Every one said that while it had promise, there were too many problems. HP quickly came out with an OS update that was supposed to clear up the hesitations and sluggishness, but only a little bit here and there. So HP said that they were going to up the CPU speed from 1.2 GHz to 1.5. I guess that won't happen now.



    Not one reviewer said that they could recommend this over an iPad. Not one! In fact, most said that they couldn't recommend it at all yet. They will never get the chance now.



    There is just no way that another company would be so dumb as to buy into a failed product. They will get tagged with that failure. It will become their failure.



    Right now, both business and government are moving, in a big way, to the iPad. despite some people still wanting to think these things are just media devices, they are very strong in the creation and business markets. A number of industries are so strongly committing to the iPad, that when asked point blank if they will consider writing software for Android tablets, they say no. Getting them to commit to a failed OS would be almost impossible. Why would they?



    Remember the old slogan? "it's the software, stupid!" Well, the iPad has all of the software in business. And a tablet is going to cost the same as the iPad anyway. So why should businesses buy something else? I can't think of a single reason.
  • Reply 163 of 253
    rot'napplerot'napple Posts: 1,839member
    Quote:
    Originally Posted by Apple ][ View Post


    I don't feel sorry for them. I enjoy watching dumb bastards suffer, so I was actually over at precentral for a quick minute before to put a smile on my face.



    Some of those people apparently live in an alternate reality and they were denying all the signs of doom up until the very end, much like Hitler must have felt in his bunker towards the end. If only the "fruit company" weren't so good at advertising. If only millions of clueless sheep didn't buy the fruit tablet. If only Best Buy sales people did a better job at selling.





    Alright, who is going to do that YouTube video of Hitler's Reaction to HP and the WebOS... You already listed the script. Good job!

    /

    /

    /
  • Reply 164 of 253
    Quote:
    Originally Posted by melgross View Post


    Wow! You actually remember Ling Tempco Vaught?



    Yeah... Jimmy Ling was the wonder child of buying/selling companys.



    AIR, he took his little company, and bought Chance-Vaught Aircraft... sliced/diced/parlayed that to where he bought a major steel company -- may have been US Steel.



    Tempco was a big part of his empire -- I forget what they did -- insulation or something to do with chemicals.



    Anyway, he'd leverage his little company worth $100 to buy a bigger company worth $1,000. Divide the big company into 3 parts and sell them each for $750 each, while retaining the cash -- at least, that's the way I remember it.



    I think Ling would approach a company with lots of cash and say (essentially) "Lend me the money so I can buy you out"... and he'd convince then to do it
  • Reply 165 of 253
    Quote:
    Originally Posted by melgross View Post


    I used a Pre for a few days. It was different, but nothing to write home about. It wasn't "discoverable" in the sense that iOS is, and the copy, Android, to a slightly less extent is.



    I haven't played with the tablet, but when it shows up in the remainders bin for $49 I'll likely pick it up. Just read all of the reviews. Every one said that while it had promise, there were too many problems. HP quickly came out with an OS update that was supposed to clear up the hesitations and sluggishness, but only a little bit here and there. So HP said that they were going to up the CPU speed from 1.2 GHz to 1.5. I guess that won't happen now.



    Not one reviewer said that they could recommend this over an iPad. Not one! In fact, most said that they couldn't recommend it at all yet. They will never get the chance now.



    There is just no way that another company would be so dumb as to buy into a failed product. They will get tagged with that failure. It will become their failure.



    Right now, both business and government are moving, in a big way, to the iPad. despite some people still wanting to think these things are just media devices, they are very strong in the creation and business markets. A number of industries are so strongly committing to the iPad, that when asked point blank if they will consider writing software for Android tablets, they say no. Getting them to commit to a failed OS would be almost impossible. Why would they?



    Remember the old slogan? "it's the software, stupid!" Well, the iPad has all of the software in business. And a tablet is going to cost the same as the iPad anyway. So why should businesses buy something else? I can't think of a single reason.



    "Remember the old slogan? "it's the software, stupid!" Well, the iPad has all of the software in business. And a tablet is going to cost the same as the iPad anyway. So why should businesses buy something else? I can't think of a single reason."



    Well... when you put it that way...



    I would only add to potential customers (especially business, education, medical, government..) why wait -- your time is now?



    ... but where's the fun in that?
  • Reply 166 of 253
    ouraganouragan Posts: 429member
    Quote:

    Hewlett Packard, the world's largest PC maker, has announced plans to spin off its PC business and scrap its recently acquired webOS smartphone and TouchPad tablet business to focus on software and services.



    According to a report by Bloomberg, HP "has been aiming to lessen its dependence on lower-margin PCs, where growth has stalled as consumers flock to tablet-style computers like those made by Apple."





    This is the kind of news that you should expect on April's Fools Day.





    First of all, you don't give up the No. 1 position among computer builders.



    Second, HP is known for its computers and printers, not the quality of its software which is, at best, mediocre.



    Third, any company (like IBM, Dell, etc.) can offer its services and there is no need to divest itself of its hardware design and manufacturing component.



    Fourth, to abandon computer hardware design and manufacturing goes against the tradition and almost 100 years of history at Hewlett Packard.



    Fifth, computer hardware design and manufacturing is making money for Hewlett Packard. There is no need to abandon a successful business making money for a new venture.





    Finally, computer hardware design and manufacturing is such an important part of Hewlett Packard that it cannot be abandonned by the Board of directors of Hewlett Packard unless they get approval by 2/3 of the shareholders of every class in value and number.



    April's Fools Day comes early this year. Or it comes for a second time this year.





  • Reply 167 of 253
    BRIEF-HP CEO: HP is at critical point in its existence



    SAN FRANCISCO, Aug 18 (Reuters) - Hewlett Packard Co <HPQ.N>:

    * CFO says took $0.05 charge to EPS due to poor demand for touchpad in addition

    to the loss already expected

    * CFO says would expect an even larger loss for webos in Q4 if business

    continued in present form

    * CFO says services revamp is 4-6 quarter journey, expects services margins to

    be 12.5% during this time

    * CFO says continues to be challenged by macro uncertainties that may impact

    consumer, commercial businesses

    * CFO says dropping long term financial target of a $7 EPS in 2014

    * CFO says expect to take cash charge of about $1 billion for restructuring,

    shutdown costs related to webos devices

    * CEO: HP is at a critical point in its existence



    ((San Francisco Equities; tel: +415 677-3939))



    ((For more news about Hewlett Packard Co click here: [HPQ.N]))



    HPQ after hours -15.86% for the day.
  • Reply 168 of 253
    apple ][apple ][ Posts: 8,697member
  • Reply 169 of 253
    melgrossmelgross Posts: 31,901member
    Quote:
    Originally Posted by Dick Applebaum View Post


    Ha!



    You forgot the HP iPod



    Yeah, well, that was then.
  • Reply 170 of 253
    melgrossmelgross Posts: 31,901member
    Quote:
    Originally Posted by Dick Applebaum View Post


    Yeah... Jimmy Ling was the wonder child of buying/selling companys.



    AIR, he took his little company, and bought Chance-Vaught Aircraft... sliced/diced/parlayed that to where he bought a major steel company -- may have been US Steel.



    Tempco was a big part of his empire -- I forget what they did -- insulation or something to do with chemicals.



    Anyway, he'd leverage his little company worth $100 to buy a bigger company worth $1,000. Divide the big company into 3 parts and sell them each for $750 each, while retaining the cash -- at least, that's the way I remember it.



    I think Ling would approach a company with lots of cash and say (essentially) "Lend me the money so I can buy you out"... and he'd convince then to do it



    I was sorry when it went. I liked the guy. I also invested in the company when it was on the way up for a while.
  • Reply 171 of 253
    aaarrrggghaaarrrgggh Posts: 1,583member
    Quote:
    Originally Posted by island hermit View Post


    Give it time... Google will make an offer to HP for WebOS.



    I would guess HTC would make the first move.
  • Reply 172 of 253
    Quote:
    Originally Posted by Commodification View Post


    Sweet!!! $100 Touchpads here we come!!!!!!



    That's what I'm hoping for. At that price, I'd buy a couple of them. Woot? NewEgg? Where do you think they will be liquidated?
  • Reply 173 of 253
    melgrossmelgross Posts: 31,901member
    Quote:
    Originally Posted by Dick Applebaum View Post


    "Remember the old slogan? "it's the software, stupid!" Well, the iPad has all of the software in business. And a tablet is going to cost the same as the iPad anyway. So why should businesses buy something else? I can't think of a single reason."



    Well... when you put it that way...



    I would only add to potential customers (especially business, education, medical, government..) why wait -- your time is now?



    ... but where's the fun in that?



    This is really very interesting because this new tablet segment is still so very new. The iPad hasn't been out for more than 18 months! 18 months!!!



    Yet, after just three months, we were seeing business software appearing. Tim Cook expressed his own surprise that the tablet was taking off so well in business because of how conservative business normally is. Jobs said that iPad sales were being driven by sales to business. I agree.



    When I was on line to buy my iPad2, all the people around me were buying it for their businesses! I was amazed by that. I'm more amazed that GE has written a sophisticated app for this and said that, nope, no current plans for anything else. I'm seeing that often.



    http://www.informationweek.com/news/...less/231300594



    The Eu has standardized on the iPad for their legislators, and so has the Canadian Parliment.



    Even the Pope is using it.
  • Reply 174 of 253
    asciiascii Posts: 5,941member
    I'm shocked. I thought WebOS had a lot of potential. It does sound like they're doing an IBM. But low margin is low margin, who wants to be in that kind of business?
  • Reply 175 of 253
    Quote:
    Originally Posted by drhamad View Post


    OK am I the only one that is going to point out that nowhere in this article does it mention a spin off? The headline probably was not written by the author, so that doesn't count. All the article says is that HP is considering strategic options for the PC division... and even that is a one-liner.



    You need to read a story written by a responsible journalist if you want the rest of the story:



    The HP board's authorization of "the exploration of strategic alternatives for its Personal Systems Group (PSG)" includes "a broad range of options that may include, among others, a full or partial separation of PSG from HP through a spin-off or other transaction."



    http://www.pcmag.com/article2/0,2817,2391379,00.asp





    DED's stuff is mostly vitriol. News ain't his forte. Pissing on his "enemies" to quiet the demons in his head is where he is at.
  • Reply 176 of 253
    Quote:
    Originally Posted by rp2011 View Post


    This is bad news for all of us. We need strong competition to drive innovation and competitive pricing. Hopefully the spun off HP can survive and thrive. Or be sold to capable hands.



    This is the new (yawn) conventional wisdom.



    Heard it before.



    Us Mac heathens are perfectly happy with the 'innovation' and the 'competitive pricing' from Apple, thanks.
  • Reply 177 of 253
    I am thinking out loud here.



    With recent events it appears that the iPad may not get any meaningful competition for another 6-12 months (or longer).



    Apple's CFO, at the last earnings call forecast lower gross margins for this quarter because of a product transition,



    It doesn't look like that will be an iPad 3 with a Retina Display and/or an A6 CPU.



    It doesn't appear that the iPhone 5 will be out in time to have any major downward effect on GPM.



    iPods, Macs, AppleTV?



    Nah!





    What if Apple does this:



    1) Bumps the RAM and SSD size on the iPad (especially the largest model)

    2) Adds Thunderbolt and USB/FW access

    3) replaces the various cell radio chips with a 3G/LTE world radio chip

    4) FFF -- Furnishes a Fine Finder-like App

    5) Robustifies iPad Pages, Numbers and Keynote bring them into line with iWork and Office

    6) keeps the prices level the same except a new high-end model.



    This would definite have a downward effect on GPM but would eliminate a lot of SKUs -- 2 WiFi only and WiFi + Cell in each Model.



    It would, likely, push the date for meaningful competition to 18 months.



    Nothing I've seen or read about comes close to iOS 5 on an iPad 2 (or even an iPad 1).



    That could be game, set and match!
  • Reply 178 of 253
    melgrossmelgross Posts: 31,901member
    Quote:
    Originally Posted by ouragan View Post


    This is the kind of news that you should expect on April's Fools Day.





    First of all, you don't give up the No. 1 position among computer builders.



    Second, HP is known for its computers and printers, not the quality of its software which is, at best, mediocre.



    Third, any company (like IBM, Dell, etc.) can offer its services and there is no need to divest itself of its hardware design and manufacturing component.



    Fourth, to abandon computer hardware design and manufacturing goes against the tradition and almost 100 years of history at Hewlett Packard.



    Fifth, computer hardware design and manufacturing is making money for Hewlett Packard. There is no need to abandon a successful business making money for a new venture.





    Finally, computer hardware design and manufacturing is such an important part of Hewlett Packard that it cannot be abandonned by the Board of directors of Hewlett Packard unless they get approval by 2/3 of the shareholders of every class in value and number.



    April's Fools Day comes early this year. Or it comes for a second time this year.









    I can't agree with this. They certainly can give that position up. Little in the way of profit, little in the way of growth for the future, and from the looks of it now, shrinkage.



    HP has had a pretty good record of software. Back when, they had the best, and one of the most popular desktops (UI). they are an enterprise company that sells solutions like iBM. They're looking to buy another big software company.



    IBM did exactly that. They divested themselves of their large, and still profitable PC division, and of their HDD division. They did this to be able to be platform neutral in many of their businesses. They even offer Apple products as part of that, and software for Apple products. HP is looking at this, and decided that it was the best way to go. These services and software products are much more profitable than their PC business.



    So HP has been designing and making computers for 100 years? Wow! No wonder they turned SWs' idea for the Apple down. HP was founded in 1939, not quite 100 years yet.



    It's barely making money for them, and with the contraction of the business this year, the writing is on the wall. Computer manufacturers are being squeezed. Sales are down, profits, if any are down, and it looks to be more of the same. The only one doing well there right now is Apple, as far as sales increases and profits are concerned.



    I don't know why you are arguing against them doing it. It's a done deal.
  • Reply 179 of 253
    Quote:
    Originally Posted by libertyforall View Post


    HP is *NOT* killing WebOS!!! They are just spinning off the hardware side of it!! Nice misleading reporting, AI!



    To call this crap misleading is being kind. I'll put it more plainly: It is just simply wrong. It has no support in fact. It is bullshit.



    As such, it is irresponsible journalism.
  • Reply 180 of 253
    melgrossmelgross Posts: 31,901member
    Quote:
    Originally Posted by AppleLover2 View Post


    You need to read a story written by a responsible journalist if you want the rest of the story:



    The HP board's authorization of "the exploration of strategic alternatives for its Personal Systems Group (PSG)" includes "a broad range of options that may include, among others, a full or partial separation of PSG from HP through a spin-off or other transaction."



    http://www.pcmag.com/article2/0,2817,2391379,00.asp





    DED's stuff is mostly vitriol. News ain't his forte. Pissing on his "enemies" to quiet the demons in his head is where he is at.



    What that business-speak means is that if they can get a high enough offer, they will sell the division. If they don't get a high enough offer, they will likely spin it off. They won't shut it down, because that would cost ten billion, and gain them nothing, short term.



    But the fact that they stated this publicly is important. It puts everyone on notice to get their pencils sharp.
Sign In or Register to comment.