Analysis says HP's exit hardware business is not good for Dell

Lead: MarketWatch website Friday, Hewlett-Packard said this week that it plans to quit the PC business.　　The news is good for Dell in the short term, but in the long run, Dell's future development is not worth watching. The following is the full text of the article: the operating profit margin for the consumer PC business was only 2.5% per cent, according to previous quarterly results released earlier this week by Dell. HP's PC business had a 5.9% per cent operating profit margin for the same period, but Hewlett-Packard CEO Lee Ai (Leo Apotheker) still decided to quit.　　Like Hewlett-Packard, Dell's PC business last quarter was roughly unchanged from the same period last year, while total revenue grew by only 1%. Some investors may think Dell can be unaffected by the shift in the market from laptops to tablets and other mobile devices. However, these investors should focus on Dell's performance data. Dell CEO Michael Dell has done a great job to drive Dell's rapid growth in emerging markets such as Asia.　　Over the past few years, Dell has added thousands of employees in Asia, making sales in India and China rise by 21% and 20% Year-on-year in the previous quarter. In emerging markets, Dell's revenue growth in the previous quarter reached 14%.　　However, even in emerging markets, the operating profit of Dell's consumer business in the last quarter remained at $73 million trillion, with a revenue of $2.9 billion. Dell will get a short-term boost after HP exits the PC market. However, one revenue no longer increases, while a business with a profit margin of only 2.5% is still not worth looking at.　　Despite Dell's other business performance, the PC business continues to weigh on Dell's performance. IBM and HP have already announced their exit from the PC market.　　However, if you look closely at HP's operating profit margins for the last quarter, it is inevitable that Mr. Ai has decided to abandon the PC business. In the software business, Dell's operating profit margin reached 19.4%. That could explain why Apotheker wants to buy a British software company, Autonomy. In addition, HP's image and print business operating profit margin of 14.7%, service business operating profit margin of 13.5%, enterprise hardware business operating profit margin of 13%, financial services business operating profit margin of 9.4%.　　In other words, once HP abandons the PC group, the operating profit margin of its remaining business is close to or over 10%. Dell is the only company that has retained a PC business in three of America's biggest consumer hardware companies, possibly because of Michael Dell's personal reasons. Michael Dell promoted the rise of the industry at the University of Texas student dormitory 25 ago.　　However, he should probably see that the current performance of the business in the future will gradually be discarded by consumers. HP's share price is expected to Neinian in the short term, as Wall Street analysts resist what they don't know. HP's shares fell sharply in Friday. The fall again suggests that if you buy and sell stocks based on the recommendations of analysts or brokers, investors will be the last to knowMessage, so it is likely to be a loss. HP is unlikely to have a "V-shaped" recovery in the future.　　In the long run, however, if the US stock market improves, HP will perform better than Dell, especially given that HP will benefit from a spin-off of the PC business. Hewlett-Packard also gave up the tablet and smartphone product lines it had bought from Palm. Apotheker has found that in the competition with Apple and Android, HP has a poor outlook in this area. However, Michael Dell may not have seen this. (Chu Yue)