HP wants to exit traditional PC market with stranded profit bottleneck

On the weekend, the PC giant Hewlett-Packard announced that it would quit its traditional PC and mobile smart device business and instead specialize in software markets and corporate solutions, Yao Hongwei. Let many industry personage sigh unceasingly is, HP's this exit and a few years ago IBM is the same, became the PC market future unpredictable another proof. Why has HP, who has been sitting on the top of the global PC market for years, suddenly opted to leave? Analysts, the global economic depression, rising raw material prices and mobile smart equipment, from all aspects of the reduction of traditional PC manufacturers profit, HP's exit is also understandable.　　At the same time, the "King abdicated" also to the second-ranked Dell and PC software giant Microsoft caused great pressure.　　Despite being the leader of the PC market, HP has no "king" feeling this year: PC business margins have fallen from the former double-digit to single-digit levels, and have been kept low and sluggish; share prices have shrunk by more than half since the start of the year; Rating agency Standard Poole also threw HP into the negative watch list for a sudden exit. In fact, while the traditional PC market has been in a state of malaise, Apple's two-digit profit margins have been particularly conspicuous in contrast to the prevailing single-digit profit margins. Some people think that the sale of mobile smart devices, not only make Apple make a big profit, and even improve the performance of its computer sales, and Hewlett-Packard had hoped to be able to make a breakthrough in mobile smart devices, but finally hit the wall.　　Not so long ago, HP's Touchpad proved it in Best Buy. In the end, Touchpad's less than 10% per cent sales rate left HP completely bereft of interest in the new market for smart mobile devices, and the traditional PC market seemed to be on the rebound, eventually making it opt out of the hardware market outright.　　To clean up the "failure", Hewlett-Packard Touchpad a 99 dollar sale and tried to buy a UK software company to concentrate on developing its software business. Many in the industry believe that HP's exit is a "meat cut", whatever the reasons, the withdrawal will be a big blow to its profits, investment and reputation. At the same time, the sudden transition makes it hard to make a comeback in a few years, but its top brass has apparently weighed the pros and cons.