Hewlett-Packard explains abandoning webOS: a bleak outlook for losses

Hewlett-Packard CEO Li Ai (Leo Apotheker) Sina Science and technology Beijing time August 19 Morning News, Hewlett-Packard CEO Li Ai (Leo Apotheker) and CFO Keshy Les (Cathy Lesjak) in Thursday, attended the earnings conference call,　　The status quo and prospects of performance are explained. They said the main reason for abandoning webOS was because the sector's operating losses were so severe that it amounted to $322 million trillion, or even more than $266 million trillion in revenue.　　Even if the recovery plan is deployed, it will take years and no guarantee of success. Although the design of webOS is ingenious and attractive, he says, "Touchpad sales are not up to our expectations."　　"and disclosed that the sector will be closed in the fourth quarter of this year. When it comes to Google's takeover of Motorola, Apotheker said the mobile market is going through some big changes, "This week's news is just another indication of the pace of change in this area."　　"In other words, webOS is inherently difficult to compete with Android, and Google's foray into the hardware sector will further increase the difficulty of competition." Apotheker acknowledges that tablet computers have had a substantial impact on the PC sector. HP needs enough flexibility if it is to remain the world's largest PC maker.　　That is why he is considering splitting the business, which will take at least 12-18 months. Apotheker also announced the appointment of John Visentin (John Visentin) as executive vice president for business services.　　Although the Japanese earthquake has had an impact on the supply chain, he believes the strategic plan announced in March this year is still correct, and that the company will remain focused on growth opportunities for software, cloud computing and higher margins. Hewlett-Packard at the meeting announced the purchase of 25.50 pounds (42 U.S. dollars) per share of the British software company Autonomy all the circulation of shares. The deal is expected to be completed by the end of the year.　　The latter's products can help companies analyze unstructured data, operating margins of more than 40%, and revenue keeping double-digit growth.　　Apotheker said the revised four-quarter guidance forecast is in line with HP's current reality. Reiss explains HP's financial data. He said the gross margins of print, webOS and services were lower than in the same period last year.　　The company's PC revenue fell 3%, but it remains the world's largest notebook maker, with a market share of 18%. Although Hewlett-Packard cut the price of touchpad by 100 dollars, the company soon found that prices could not create demand, according to Barclays.　　HP, which generates about $0.05 trillion per share for webOS, will further increase its losses, so the company does not want to continue this "risky, no return" investment, but it is expected to charge a cost of $1 billion. The lower supply of printer cartridges at the end of the quarter reflected the economy, he said. And because of the uncertainty of the economic outlook, the companyThe growth forecast for the fiscal quarter is also lower than in the past. Asked which areas would underperform in the next two quarters, Mr. Lee said the region would grow and others would fall. Consumer PCs will slide and corporate PCs will grow.　　The public sector has also been affected by budget shortages.　　As to why HP's profit margin is only 12.5%, he explains, mainly because of the replacement of new leaders, the increase in coverage and the type of service. When it comes to the takeover of Autonomy, Mr. Lee said the move could speed up the company's development in the area of corporate information management, and that the company's profitability is strong.　　But he said autonomy would still operate as an independent entity, but would provide HP channels as soon as possible to achieve synergies. Apotheker said he would not comment further until the board approved the spin-off of the PC business.　　webOS has a number of future development options, including licensing and any other possibilities. HP's shares fell 6% per cent in regular trading in Thursday, after trading down 10%. (PEI)