HP: surrender to Apple to “IBM”
If the former IBM Chairman Louis Gerstner, former CEO of HP Kali, Chairman and CEO Steve jobs, Apple now three people to sit together, certainly having all sorts of: Louis Gerstner could not conceal his hour, and Steve Jobs had a knowing smile; Kali you might have failed. Because the three lead changes, continues today, almost determines the fate of their company for the next ten years. The most attention, is now HP: on August 19, announced it will sell its mobile phones and flat-panel computer business, splitting and PC.
This scene, as a waiver of consumer business started, is far from “Apple”, to “IBM” the most radical step.
Division of inevitability
HP’s policy changes, both suddenly and reasonable.
Suddenly, HP phones and tablets sold for businesses just getting started, to mobile and Tablet business, its last May for $ 1.2 billion acquisition of the old Palm PDA and Smartphone giant. Acquisition, HP Executive Vice President, global Todd Bradley says smartphones will be part of HP’s future mobile strategy, promoting the company changes its business model, device paradigm shift to the Internet.
Also, embarrassment is that in February this year, released in San Francisco scenery HP webOS products, launch of TouchPad tablet, Veer Smartphone, webOS2.1 operating system, seems to want from the Terminal, the operating system level to break Apple ‘s.
HP executives seem to have forgotten policy over the past year. CEO Apotheker said, this is a difficult but necessary decision; Chief Financial Officer, said, HP easy flat prices also cannot create demand.
“It is equal to surrender to Apple and Google. “Mobile Internet industry, General Secretary of Li Yi to the business daily said.
That’s right, buying Palm, HP intends to create a “Apple of the” mobile Internet business models. But it was clearly overestimating the its experience in the field of mobile Internet. Palm webOS operating system independently, but the decline was a noble, had not been able to build biological circle, little-application development. Around Apple Developer tens of thousands, number of downloads of millions.
Analysis of Li Yi, HP acquisition of Palm’s policy is somewhat contradictory. Advantage of Palm webOS and not Terminal, HP took over the focus should be placed in the digestive tract on webOS value, or even go the way of open source, and not busy pushing their own Terminal, so away from the partner. In his view, the opponent deliberately copy Apple mode will not succeed.
HP Lei·lanen with action, non-Executive Chairman, surrender to jobs. He said that only a company can successfully integrate hardware, software, “it as a special case because of a man”. He said apparently Steve jobs.
HP to make decisions, and Google. Rise or even Android makes Steve Jobs nervous. When Google announced the purchase of Motorola after the move, sparked open camps such as HTC, Samsung partner of Carnival.
As for the split PC, not cause much surprise. Lenovo announced the purchase of the end of 2004 when the IBM PC, HP PC some assertions will follow in its footsteps. Earlier this year, also has been rumored, it talks with Samsung, Hon Hai.
Split even sell PC, HP has taken 10 years ago. Kali in the brave choices in his autobiography said that HP 2002 considered sold or broken up PC, only print Imaging possibilities, but fears hit which do not make a decision.
Now split and sold assets are mainly concentrated in the consumer business. This means, of the last century 80 ‘s the consumer electronics market Hewlett-Packard, is about away from the general public, entering the B2B model.
Too late to IBM?
But Li Yi believe that HP suffered direct pressure, not from Apple and Google, HP mobile Internet has been no real, far from being defeated.
“Real pressure is it contradictory business model. “He said, HP selling consumer businesses, indicating that it is out of the last large and comprehensive pursuit, out of the shadows on a large scale, the real software and service transformation, that is, pursuit of IBM.
IBM HP at least 18 years of experiences and lessons. Louis Gerstner also had plenty of reason towards the current CEO of HP, a former CEO Kali Apotheker expression of pride.
IBM Service transformation motive since 1993. In the who says Elephants can’t dance, Louis Gerstner said with IBM service company in charge of that year he met Danny, the latter told him that the company’s future should not provide products and services in the traditional sense, is the basis behind the service. Stayed at McKinsey and express Louis Gerstner was passionately decided to charge a big bets, turn IBM into a services company. 8 years later, in 2001, IBM added 80% in the $ 25 billion in revenue, from the services business.
That year, HP announced the acquisition of Compaq. Kali is often talked about, the importance of software and services in the Internet age, but the important goal of Hewlett-Packard at that time remains, individuals, businesses, utilities market comprehensive, keep sizes continue to grow. It’s also one of the principles of the HP way.
Kali lack Louis Gerstner that proactive and challenge of courage, some easier to compromise.
She says in his autobiography, even software business as others, but the companies still have the ability to achieve the mission. Then again, the company may choose means of acquisition, but financial pressure, take this strategy almost unlikely in the near future, even a low-priced products, there are difficulties.
In 2007 after the PC business pass Dell, HP seems to have forgotten the potential for crisis. Fortunately there is, the financial crisis of 2008 “saved” it, and let it realize that losing edge PC unable to support the development, you must reverse the momentum. Thus, CEO Hurd come to dominate madness of mergers and acquisitions, including acquisitions, EDS, HP has spent about US $ 20 billion.
The incumbent CEO Apotheker further reinforces this strategy.
HP seems to have missed the best period away from the hardware, transition services. The total revenues of 126 billion dollars, PC business is accounted for 40 billion dollars, far more than the 2005 IBM PC business relative proportion of the total revenues. Also, most embarrassing is that large scale PC operation, to raise the threshold for disk access to the “impossible”. Dell CEO Michael Dell on Twitter ironically said that HP and PC to “divorce” is said to “separation”. HP’s official stance on the Twitter revealed a helpless and unwilling, “not so fast as you think, we are now is still the world’s largest PC manufacturer. ”
But capital markets on the “split”, generally is considered to be leveraging leverage for the transition changes hands, in the past it had sold Agilent semiconductor by similar modus operandi. Michael Dell remarks, derision said HP is all out in a “unknown” time, in an “unknown” strategy, the PC business to “unknown” for disk access.
Of course, HP PC business may be “release eight” to retail in order to find more buying Consortium. But that would take more time. You know, in 2011, Dell, Acer notebook business is likely to rise above it, when the premiums may be lower.
Of course, HP IBM may mean new life, it is already the world’s second-largest software services companies. However, its profit structure will be the key to the constraints. In 2010, IBM $ 99.8 billion in revenue, about 80% of HP’s revenue last year, but IBM net profits are HP 1.7 times.
HP, once sold PC revenues to shrink one-third, faced with integration, I am afraid it is not optimistic about the profit structure.
Current CEO he seems to be of changes you can experience full of pride. The day before yesterday he external stressed: “we will enter a key to HP’s history section. ”
But the reality is that HP had no choice.
The business journal