IDG News Service
Hewlett-Packard has outlined a turnaround plan that includes slashing the number of PC models it sells by 25 percent over the next two years.
At its financial analyst day in San Francisco on Wednesday, HP also painted a weak financial outlook for the next fiscal year, saying it expects earnings per share of $3.40 to $3.60. That’s well below the analyst estimate of $4.18.
HP’s stock price took a hit after the announcement. It was down around 11 percent in mid-afternoon trading.
News Service (Seattle Bureau)
IDG News Service - Hewlett-Packard, which recently discontinued its TouchPad tablets, took the top spot among tablet vendors behind Apple’s iPad this year through October, according to research from NPD.
HP had 17% of non-Apple tablet retail sales, from January through October, just barely beating Samsung, which had 16% of non-iPad sales, NPD found.
Apple dominates the tablet market and many other manufacturers, like Samsung, have been working hard to get a foothold in the market.
Hewlett-Packard isn’t going out of the PC business after all. Today, CEO Meg Whitman announced the company would continue to make and sell PCs, reversing a decision made by her predecessor Léo Apotheker in August — a decision that riled investors and employees and led to his ouster in late September. Since the August announcement, HP’s future has been repeatedly questioned, as has the competence of its senior management. The appointment of board member Whitman as CEO added to the criticisms.
The world’s two largest personal computer makers, Hewlett-Packard and Dell, said Tuesday that a slowdown in sales to consumers in the first months of the year damped overall revenues.
“The PC market continues to be bifurcated,” Léo Apotheker, the H.P. chief executive, said in a conference call with analysts. He added that “even though our consumer PC expectations had been cautious, the steepness of our Q2 decline is greater than what we had anticipated.”
H.P. said that sales of personal computers in the fiscal quarter ending April 30 fell 5 percent, to $9.4 billion. A 23 percent decline in consumer computer sales far outweighed a 13 percent increase in sales to businesses. Read more
In an ambitious global initiative to link enterprise chief information officers together to discuss their enhanced role in the corporations of the future, IDG and sponsor Hewlett Packard have launched the Enterprise CIO Forum. Designed as a combination of editorial content, research and peer-to-peer exchanges among IT executives, the Forum will focus on how IT has become a driving force in the transformation of many businesses. The Forum is offered in English, German, Chinese and Japanese language versions, each with a full-time manager of content and conversation. The U.S.-based version of the site is kicked off by manager and tech journalist John Dodge, who promises visitors a selection of tools and executive research, analysis of emerging trends as well as daily blogs and conversations among other IT executives. “The enterprise CIO Forum is an online global forum by and for CIOs and IT leaders in the world’s largest multinational companies,” he says at the site.
Week of 2/7
HP enters the tablet competition, iPhone 4 goes on sale at Verizon stores, and a common charger debuts in Europe. Nick Barber with the IDG News Service reports on these and other stories…
IDG News Service (San Francisco Bureau), 2/9/11
Hewlett-Packard rolled out its debut entrant into the red-hot tablet market, the HP Touchpad, as well as two new smartphones — all running the latest version of the webOS acquired last year when it bought Palm.
HP may be behind some competitors in introducing a tablet, but Todd Bradley, executive vice president of HP’s Personal Systems Group, implied that the market is in its infancy as he kicked off the Wednesday event. “The market for connected devices is, conservatively, $160 billion. And we’re in the early stages of a growing market,” he said.
The HP Touchpad will be the first in a family of tablet devices, HP said. It has a high-resolution 1024×768 9.7 inch-display, weighs 1.6 pounds and is 13mm thick. It has a 1.3 megapixel webcam, and allows video calling. It comes with 16GB or 32GB storage and uses the dual-core 1.2GHz Qualcomm Snapdragon processor. The Wi-Fi version will be available this summer in the U.S. and select markets worldwide, with 3G and 4G versions coming later, HP said. A compact wireless keyboard is available for the Touchpad.