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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.

its because you are looking at the small picture. The money isnt in the pc and laptop game. the money is in the server and computing game. If you knew what the cost of a rackmount server and all hardware to set it up right cost you'd shit yourself.

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Their stuff are shit anyway. I stopped recommending them years ago. Their netw hardware cant compete either

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its because you are looking at the small picture. The money isnt in the pc and laptop game. the money is in the server and computing game. If you knew what the cost of a rackmount server and all hardware to set it up right cost you'd shit yourself.

This. HP has been alluding to this for several years now. I didn't think they would take it quite this far, but I knew their PC business was hitting the back burner eventually.

Their stuff are shit anyway. I stopped recommending them years ago. Their netw hardware cant compete either

Not only that, but service is shit as well. Never again will I buy an HP computer.

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I woder what will happen to dell

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Hopefully they get back to their roots and go business/ultra high end consumer only. Back in early 2k they made the mistake of getting into the "junk" computer business along with Dell, IBM, and the rest. I just find it ironic how many people here buy garbage computers and bitch about them yet they wouldn't be caught dead running an amp from the Radio Shack or Best Buy bargain bins...

I would assume over the coming years we will see all the big guys phase out the junk lines and get back to making quality. Sure it's cool to be able to run out and get a laptop for $600, but you get what you pay for. I honestly don't even look at anything south of $1000 (unless it's a referb or clearance or something). :pardon:

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IMHO, HP>Dell

I've ran the same HP laptop since the beginning of 2008 and I've had absolutely no problems with it. Tech support is not needed if you know what you're doing with PC's, which honestly, is not very complicated to deal with. Even if you need tech support, I never had any issues with them. To me, Tech suppolrt is just getting drivers if I need them. Internal problems are a little more complex, but I never dealt with that kind of stuff from HP.

My current desktop is a custom built machine, however my friend has a nice HP desktop that I wouldn't mind picking up and just upgrading the RAM in it

The only drawback to HP, or any "store-bought" PC is the pre-loaded software. I'd never use any of it. Usually, what I do, and did with my notebook, was formatted the hard drive and just install whatever Windows OS it came with. After which, it is a really nice machine.

I'd be a bit disappointed if HP went into quit, because smartphones still will never be able to accomplish half the stuff PCs (or MACs) can. Also, they're not as blind-user friendl, for people like myself who can't see well and rely on screen magnification programs or screen readers.

Just my 2 cents.

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