HP Likely to Keep PC Division, Dell Nods Approvingly

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praack

not sure HP was wrong- I think they made a mistake on execution and lack of preperation -something that IBM did not make a mistake on.

margins are thin, HP is making money but on the volume and Dell is hot on thier heels in the Enterprise side for desktop./laptop. Dell enjoy's having server side solutions as well though.

I look at HP as making the same mistake as Netflix- though the changes may be sound for future proofing- without preparing the customer/shareholder base, without performing the execution right you lose.

And if you then make the comparison with the IBM sale of to Lenovo- you see the differnece there- customers/shareholders were advised, a solid business plan of the future in software/servers was put forth and it went over well

HP has two more years- will still need to shift focus - and dell will buy the pc part at a discount then

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lo_tek

I hope Meg is a bit smarter than Leo was.  The decision to jettison the PC division was the ultimate in folly.  The company would be closing its doors shortly thereafter if they carried that decision out.  I said as much to a professor at a school I'm attending and he disagreed.  I replied that it's sort of like the movie theater business, the theater doesn't make much on the movie itself, they make their money off the concession stand.  But try to take away the movie because of the narrow margins and then keep the concession stand open and see what happens.  I think he understood what I meant, but he just replied,"Oh, they're smarter than us, that's why they're in the position they're in."  "Well, Leo's fired, prof, how smart is that?  And his company's stock dropped 50% in value since the start of 2011. How smart is that?  You tell me."  I had to stop because I didn't want to show him up, he's the professor after all.  But this bit of news vindicates what I've been saying to him.

 

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