/What a difference a day makes!

What a difference a day makes!


I’m going to guess you have already heard the news that HP has thrown in the towel on WebOS and is also looking for ‘solutions’ to get out of the PC market?

If you haven’t heard, then I’m guessing you were on away on a bachelor week holiday or you’ve won the lottery and don’t care about anything anymore.

For the rest of us, this is BIG news! The world biggest PC manufacturer is getting out of the PC business!

A figure released recently claimed that HP had to sell 7 PCs to make the same profit that Apple makes on a single iMac sale.! WOW! Margins are now so low in the consumer PC business that even HP with it’s economies of scale is finding it not cost-effective.

Two months and they give Up Against iPad!
HP have also decided to cancel their, recently announced,  iPad competitor the HP Tablet, which was only released in June. Best Buy are reportedly asking HP to take back approximately 250,000 units that they cannot sell (even after dropping the price by $100). So HPs venture into the ‘Post-PC’ era of mobile devices has also failed.

That means they are admitting that their purchase of Palm last year and their plans to utilize the WebOS on Phones, Tablets and even onto their PCs was a bad idea.

What Next?
So what are they planning to do? Well it would appear that they planning to buy UK company Autonomy, which will help them move into the enterprise software and services market, just like IBM did in the 90s. But is there enough room in that Global market for another big player? IBM only made $2 billion dollars last quarter, compare that to the $28 billion that Apple made in the same quarter and it would seem that perhaps HPs new direction is not exactly clear cut.

Personally I think the problem is that the PC industry has not evolved, they are all black boxes with forgettable names and forgettable experiences. I mean what is a HP Pavillion vs a Presario or a HP Pro 6000 vs a 4000? It’s just too confusing for Consumers especially against the rest of chaff from Acer and Dell. The problem is nothing stands out! There is no designer brand between the PC manufacturers. Add to that the junkware they insist on piling on the PCs and it all adds up to a less than ideal ‘user experience’.

I guess time will tell, but for now, the Tech industry is in a dramatic state of change.

As for the other PC manufacturers in the world like Lenovo, Dell, Acer and Asus – I guess they are are going to be clenching their butt cheeks and hoping that Microsoft can pull a spectacular surprise from the hat with Windows 8!  Otherwise there are going to be a lot of new ‘Enterprise Services’ companies springing up in the next few years.