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HP wants to exit PC business


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Although the world is dependent on personal computers, making them has not been a great business for most American companies for almost a decade.Hewlett-Packard's announcement that it was considering offloading its PC business, even though it is the undisputed worldwide market leader, is a sign of the difficulties.

If HP goes through with the idea, it would follow IBM which was one of the first to recognise the long-term problems and, in 2005, sold its business to Lenovo, a Chinese company. Other American makers like Compaq (acquired by HP), Gateway and Packard Bell were absorbed by others or just faded away. Depending on how HP sheds the unit - it could sell or spin it off as a separate company - only two American PC makers would remain.

One of them, Dell, struggles for every percentage point of market share.The other, Apple, prospers. And the reason it does highlights the shift from a PC-centric era to one dominated by smartphones and tablets. HP, Dell and every PC maker worldwide, has been unable to make a tablet consumers feel they must have. HP has killed its tablet, the TouchPad, after just a few weeks on store shelves.

Computer makers are expected to ship only about 4% more PCs this year than last year, according to IDC. Tablets, in contrast, are flying off store shelves. Global sales are expected to more than double this year to 24.1 million, according to Forrester Research. More than two-thirds of those tablets, however, are sold by Apple. Sales of its iPad pulled in $9 billion in just the first half of the year, 30% more than all of Dell's consumer PC business in the same period. The joke in Silicon Valley: there is no tablet market, only an iPad market.

The other observation is no joke: Apple is the only maker with strong PC growth. Spending on desktops and laptops grew 16% in the latest quarter, while Dell's consumer product sales increased 1%. "The tablet effect is real," said Leo Apotheker, HP's chief executive, in an interview on Thursday, acknowledging that the TouchPad had failed to live up to expectations and that it would have cost too much to compete. "It's very different from where the business was going 10 years ago," Apotheker said.

http://articles.economictimes.indiatimes.com/2011-08-20/news/29909344_1_tablet-touchpad-pc-business

Can't really see a big company doing this.

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i lived down the street from them for years... i used to work there when it was compaq, and saw the changes they made, now its a college campus for lonestar college... and there's still many empty buildings there... but HP still owns most of the property... they're just leasing it to Lonestar until the buildings are fully occupied by them. Sucks to see them shutdown a part of history down, I even own a HP computer myself.

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i lived down the street from them for years... i used to work there when it was compaq, and saw the changes they made, now its a college campus for lonestar college... and there's still many empty buildings there... but HP still owns most of the property... they're just leasing it to Lonestar until the buildings are fully occupied by them. Sucks to see them shutdown a part of history down, I even own a HP computer myself.

Yep. I own an HP desktop and laptop, and my family has 2 more HP computers, along with a couple HP printers. I guess when the market turns, things like normal computers get slapped into history. I never did like those new touch pad things..

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wow... that doesnt even see right... oh well, survival of the fittest i guess

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Shit my HP laptop is brand new! Does that mean Im screwed if they stop making laptops and something on mine breaks?

I hope the whole world doesnt use Apple one day. Im not a super trendy Mac fag. Sorry I dont feel the need to spend $2400 on a Macbook when my $800 HP does the EXACT SAME stuff!

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fuck em. hp makes crap.

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it has nothing to do with the market... it has everything to do with the damn CEO, they're just being dicks at this point...

please, be so kind as to elaborate upon this statement.

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