HP's transformational path: Follow IBM's exit PC focus on software services

Introduction: Foreign media in Thursday wrote that Hewlett-Packard CEO Li Ai (Leo Apotheker) is currently working to achieve its "recovery plan."　　Under the plan, HP will abandon its smartphone and tablet business, while splitting or selling its PC business, into a second "IBM". The following is a summary of the article: The reorganization plan, announced by Apotheker in Thursday, conveys a clear message that HP has failed to meet the needs of individual users and business users.　　As a result, HP needs to quit most of its personal-consumption businesses, as IBM did six years ago. HP's restructuring plan consists mainly of three parts: first, HP will stop making tablets and smartphones in October; second, it will split or sell a PC business, and by the end of next year HP will be sold in the name of another company; third,　　HP plans to spend about 10 billion dollars to buy commercial software developer autonomy. HP is the world's largest technology company in terms of revenue, and after the reorganization, HP will continue to sell servers and other equipment to corporate customers as IBM does.　　Enterprise customer business revenue at present, although no PC business contribution, but the profit margin is higher. Lee Ai has not disclosed whether it will lay off staff. HP plans to invest about 1 billion dollars to restructure and pay for the costs involved. HP employs more than 300,000 people worldwide.　　HP hopes to build an IBM-like business model that focuses on business and government sales. Apple wins when HP makes this transition decision, the pressure on Steve Jobs and Apple should not be underestimated. Apple is currently the world's hottest consumer electronics manufacturer, the iphone and ipad are popular with users. Brian Marshall, an investment agency Gleacher & Co, said in an interview: "Apple has single-handedly defeated HP in three of businesses, such as PCs, smartphones and Tablet PCs." "Hewlett-Packard has decided to avoid its sharpness and to compete with other industry giants, namely IBM, Oracle and Cisco," said Marshall. HP's transition is significant given that he spends most of his career in SAP, the German business software developer. Marshall said: "This is Li Ai's strengths, and now he has to come up with his own skill." "HP's restructuring plan clearly did not impress investors. After the news of the reorganization, and HP's third-quarter earnings were lower than expected, HP's regular trading in Thursday closed at $29.51, down 1.88 from the previous trading day, down 6%.　　In the intraday trading, the unit fell 10% to 26.61%. Mr. Lee Ai, who is losing his face, has sought to help ease the pressure of scandal through drastic reforms, leaving a mark on the history of the company he inherited last year. Mark Hurd, Hurd's predecessor, was forced to resign from a sex scandal a year ago. To divest most of HP's personal consumer business, Lee AIThe department is tweaking HP's hardware-focused strategy for the last 10 years. Obviously, the short board of HP's personal consumption business is the lack of mobile devices with market influence. Despite spending 1.8 billion of billions of dollars on the acquisition of Palm, hoping to catch up and overtake rivals in the smartphone and tablet markets with the webOS system, this hope is now dashed.　　HP officially renounced webOS in Thursday. While the industry's evaluation of webOS is good, the iphone, the ipad and smartphones running Google's Android operating system dominate the fastest-growing consumer electronics sector. HP lags behind rivals in terms of profitability.　　Market Research institute Gartner data shows that webOS smartphone global market share is less than 1%. In an interview, Apotheker said HP would try to find a way out for webOS, such as in PCs, printers and other devices, or authorized for use by handset makers.　　Apotheker said he was disappointed with HP's mobile device design, saying it would cost a lot to turn the business around. "HP's involvement in the tablet market is too late to attract too much attention," said Charles Golvin, a research analyst at Charles Golvin, a market researcher. They realize that the chances of success are slim. Golvin said HP could authorize the use of webOS for cars and consumer electronics manufacturers.　　But with Google's free Android system positioning itself in the same market, HP is also facing serious challenges. Joen Rubinstein, Jon Rubinstein, the former CEO of Palm, said last December that Palm had decided to sell because its management was aware that its business was only a small success but could not survive on its own in the long term.　　Given its size, he says, HP seems to be the best choice to help palm products attract more users. The PC business is HP's biggest source of revenue and the least profitable business, mainly because of falling PC prices and fierce market competition. Ticonderoga Nomura analyst Shaw, an investment firm, said that HP's abandonment of the PC business amounted to another recognition of Apple's dominance in consumer electronics.　　The PC business also weighed on HP's share price, even if it accounted for only 15% of the company's profits. He said: "Apple is a very strong competitor, Hewlett-Packard may be aware of the need to cut off the low margin of business, and should not be late." "Abandoning the PC business will make HP's future trajectory similar to that of rival IBM.　　As an important participant in the PC market in the the 1980s, IBM sold its PC business in 2005, instead focusing on software and services. In fact, the acquisition of Autonomy reflects HP from the host vendor to the software and servicesThe great determination of the manufacturer's transformation. In the third quarter of July 31, HP's net profit has increased, but the company expects its share price to be under pressure in the fourth quarter, which is expected to be lower than previously expected. HP also downgraded its full-year revenue forecasts for the current fiscal year. (Xuan Chen)