HP split PC controversy: a broken wrist or a self-destructive career

A broken wrist, or a self-destructive career? It times Xin Yun This issue of the guests are well-known communications experts ye Gartner Asia-Pacific Hardware Systems Group chief analyst Tang Xin is slightly June management consulting analyst "to destroy a great enterprise, a few months is enough."　　"The sound of Wall Street and Silicon Valley came after HP CEO Apotheker claimed to split the PC business unit while shutting down the tablet and smartphone business and strengthening business software and cloud computing services." Compared with 2005 when IBM gave up the PC business, HP's "broken wrist" made many people feel very suddenly. Behind Mr Lee's decision, the personal Computer business unit's future direction is not clearly planned, touchpad listed only 49 days has been "dying", and its similar to the direct surrender to Apple seems to hurt many HP investors and the firm supporter of the brand.　　HP is still in the top spot in the global PC industry, and many American columnists have expressed the same view: HP's abandonment of the company's most important asset is no doubt a way to self-destruct. Doing business is like raising pigs, only making the most money, in an exchange with the IT times, Xiang that it is a common idea for American companies to give up the unprofitable business: "When IBM sold the PC business to Lenovo, I had a conversation with their senior executives and the words of the other side shocked me." For them, they only do the most lucrative things. Enterprises and important products almost equal to a pig, fatten can make money on the line, can not make money to sell it. Make such a big decision, especially simply. The same is true for HP, which has taken decisive action when it recognizes the meager profits of the PC business. "HP jumped to the top of personal PC market share after the 2002 takeover of Compaq, but its profits have fallen markedly in recent years. Third-quarter earnings in fiscal year 2011 showed that HP's third-quarter revenue rose only 1% from a year earlier. HP will cut its financial forecasts for the fiscal year every quarter.　　The PSG (Personal Systems Group), which Hewlett-Packard gave up, revenue 9.6 billion dollars to 31% of the overall revenue, but only 569 million dollars in profit margins, less than 6% per cent, far below other sectors. HP's market share in PCs and tablets was 18.5% last year, down from 15% in the second quarter, while Apple's market share rose to 21.1% per cent (including the ipad). Analysts think there are many reasons for the sluggish HP PC business.　　At the same time, some domestic analysts believe that HP's decision is "wise".　　Xiang said that there were some voices that HP chose the timing of the "broken wrist" is a turn too fierce, but the actual HP identified the future trend will come one day. "As the PC industry competes more and more fiercely, making profits becomes more and more difficult." and relatively, enterprise-class business because the user value is high, the user picky degree is lower, becomes the more main profit direction.　　"Xiang said. The reason for losing to Apple is that it threw 1200 million-dollar takeover of Palm, and the introduction of the webOS system of smartphones and tablets, but the move to HP is only a bleak market reaction, touchpad even by Best Buy refused to sell.　　When he talked about competing with Apple on many occasions this year, he said that Hewlett-Packard would "win all", but said recently that "companies that have perfected hardware and software like Apple are rare". Tang Xin said that webOS did not take the same approach as Android with a large terminal vendor, but relied on its own development of mobile terminals, too slow in the industry.　　In addition, touchpad positioning in high-end business, the target customer base is very small, in iOS and Android has become the industry standard situation, still go to the minority routes naturally difficult to gain market favor. And ye that, compared to iPad2 and a large number of Android tablet, touchpad is slow to launch, configuration is not high, pricing is too high. The high turnover frequency of HP's leadership may have had a certain impact on the progress of the entire eco-chain, "Touchpad, the top leaders of Lenovo, Acer and Dell, have not changed much." But HP has changed from Carly to Hurd to Mr. Apotheker over the years. The takeover of Palm is the decision of HP's former CEO, Hurd, and changing the leader may have more or less strategic impact. "For Hewlett-Packard," to win all, Xiang that is precisely its failure. Hewlett-Packard's former CEO, Carly, had argued that it was going to be big to be competitive, while Mr. Hurd, the successor, continued to slash costs and lay off layoffs while continuing to merge companies. Over the past decade, Hewlett-Packard has spent billions of of billions of dollars on mergers and acquisitions, with employees growing twice times, while companies are expanding and growing at a slower pace. Xiang said: "The change of professional managers too much, excessive mergers and acquisitions, the product line dragged very long, it seems that anything can be done, the actual lack of a truly strong cohesion of the direction." In fact, enterprises and people, the energy to do products Limited, Apple's product surface is relatively narrow, all the power to concentrate, so that products do strong, do a good job.　　"Who is the potential successor?" Dell, Lenovo and Samsung, the PC market share after Hewlett-Packard, are considered potential buyers of HP's PC business.　　It is learnt that Taiwanese foundry companies are keen to become the successor rather than Samsung with their close ties, thus reducing the impact on PC 0 components.　　And webOS's more than 1500 mobile internet patents seem to be worth the interest of other smartphone makers in the context of patent lawsuits and Google's acquisition of motorcycles. At present, Hewlett-Packard Personal Systems Group Executive Vice President Tode Bradley pointed out that the PC sector valuation should be more than 10 billion U.S. dollars. But ye that this part of the valuation should not be so huge. Although Lenovo is keen to expand overseas markets, it may value HP's procurement relationships with the U.S. government and many large business education institutions, but from several major rivalsPerspective, the acquisition of HP's PC division does not gain as much benefit as Google's acquisition of a motorcycle. For webOS's patents, Tang Xin that Google has taken out half of the cash to buy motorcycles, should not consider any more action. Microsoft is likely to buy a large chunk of HP's split assets. To avoid a patent falling into the competition, Apple could have bought it, after all, after having been involved in the Palm bid.　　In addition, for Asian companies, Huawei is likely to acquire a portion of its patents after weighing the risks. (as of press, get the latest news, according to U.S. media reports, HP split case is far from dust settled.) Hewlett-Packard PC business leader, personal Systems Group PSG executive vice President Tode Bradley in a recent letter to partners and customers, said HP may also consider retaining the PC business. "Keeping the PC business in HP has not changed, and we are making the decision to make PSG stronger." ”)