RUMOR: HP getting out of the PC business?

I can only say that the its an interesting decision, the PSG was not worth the effort, they constitute about 5% of the profit margin.

The best thing that they can do is to only focus on the envy line and professional line, raising their profit margins, and leaving the rest of the market for others, lenovo, dell, asus, lg, samsung, and so forth. Thats where their profits are pretty lower (for everyone for that matter) and the branding is still present only due to the maintenance of the brand

An apple like development of their line is the best thing that they can do if done right

 

Very sad about this indeed. HP makes the best consumer notebooks for the money, imo. Hopefully the sale of their PC division doesn't change that. I suppose it didn't hurt IBM/Lenovo quality that much.

I just can't understand why they would want to get out of the PC business. Tablets and smartphones I can see.

 

"Spinning off" doesn't necessarily mean selling. It could mean separating the PC division from the rest of HP to form a new, independent company. As explained near the end of this CNET article, HP could spin off the PC division in one of three ways, and an analyst predicts that the formation of a new company is the likeliest outcome:

What will HP do with its PC business? | Nanotech - The Circuits Blog - CNET News

 

Which seems to confirm what the BBC article, among many others, is saying.

Also, from the source you cite:

The possibility exists that HP won't take this action-just like the possibility exists that the sun won't rise tomorrow. I think it's fairly clear what direction the business is hoping to take.

 

Maybe not the ThinkPad line, but their consumer-grade notebooks are nothing special.

 

Did IBM even have a consumer line before they sold to Lenovo?

 

I was just in a big electronics store and walked past the huge HP Tablet display, touting "Get this for back to school". Wow, I feel bad for any parent or student that bought one of these. Money is tight when you go back to school, and this is now a dead end purchase.

As for my HP Laptops, I'm not worried at all!

 

On the other hand, any parent who is like "I'm going to buy my kid a TABLET for school!" deserves a little slap to the back of the head. Why get something for back-to-school that you can't actually do schoolwork on? After all, it's somewhat easier to type an English paper when you have a keyboard to type with...

 

A quick search shows the IdeaPad line wasn't released until 2008. Lenovo bought IBM in 2005. I'll have to throw my hands up on that one. Still, I think Lenovo really should have kept their consumer and ThinkPad businesses entirely separate, especially because the ThinkPad name had/has a ton of equity in it.

 

I feel like a spinoff could be beneficial. The PC group could have more autonomy and creative freedom being unshackled by HP's business oriented ways.

If things were to go in a direction where selling them completely would be more beneficial, I wonder who would buy them?

My vote is on Acer, they love buying brands it seems. Packard Bell in the UK, Gateway here in the states...having a name that isn't seen as "2nd tier" in the eyes of American consumers is something I feel they'd love to have in their arsenal.

 

They already do. That's why they call their consumer laptops IdeaPads instead of ThinkPads.

 

You know who I would loooooove to see the spun-off HP division go to? LG. I love their other electronics products, really well made, but they've got a long, hard road ahead of them trying to get enough brand recognition in the US laptop market to sell laptops here. They could skip that step entirely, and enter the market with massive penetration, if they owned the names "Pavilion," "Envy," "ProBook," and "EliteBook." They'd get a ton of manufacturing facilities to boot to take a budding laptop division and make it huge. And the achilles heel of HP's consumer line, the build quality? LG has that down. Really, really well.

I see it as a win-win. Both the spun-off HP computer division and LG bring something to the table that results in synergy.

Heck, the P330 could be the next-generation "Envy," with future 15" and 17" models following that design and engineering aesthetic.

 

Investors Rebel Against H-P Plan - WSJ.com

 

All 9 of those suckers .

 

At this point, it's hard to imagine how HP is going to get "top dollar" for its PC division, since the long rumored spin-off was announced at the same times as the WebOS kill-off - it isn't the same thing as putting up a "Going Out of Business Sign," but the damage has already been done. In the minds of consumers, HP is getting out of the PC business. And they probably are.

The real issue is that the PC division is too big and expensive to sell off to the logical bidders, such as the ODMs. HP might still be number one in the PC segment, but it seems that predictions of a "post-PC world" are coming true.

There are bigger issues here, not for HP, but for Microsoft. If the biggest Windows PC brand can't afford to stay in the PC business, what does it say about the future of Windows? It seem to me that the HP board of directors decided that the Windows PC business is in the toilet and when Windows 8 drops, the water is just going to keep on swirling. It should be panic time at Microsoft. Are we indeed at the end of PC-era?

 

I disagree. They don't factor all good will they get from consumers.
The problem of this decision starts in Public Relations and will extende well beyond it.
This will hit any consumer division they have, printers etc, they all will get a big hit. The coherence - maybe you call self image - of the firm is at risk.
This also shows the awkward decision process of HP in later times. For example the Palm buying.
The 20% drop in stock value shows the hit the firm took just into the market.
They didn't had anything to even offset the throwing the towel into the ground.

Jaguar etc...
The eventual spined-off HP PC division can't be called HP anymore. Maybe they will go for Pavillion or go to Compaq.

 

Portable stuff is still a PC. All smartphones are PC's.


linuxwanabe
Maybe Microsoft can buy HP PC division, kills WebOS and puts Windows in every former HP Phone/Tablet.

 

Not gonna happen. HP is dumping liquidating inventory. Touchpad 16GB for $99 and 32GB for $149. Going, going, gone. The Touchpad liquidation has put a major stink on the whole HP PC division. People are starting to wonder when HP is going to have a firesale on desktops and notebooks. This is a major PR disaster!

As far as the definition of a PC, in the popular mind a PC is something running Windows. Blame all of Apple's "I'm a Mac/I'm a PC" commercials.

 

"This is a major PR disaster!"

I totally agree with that.

ref C
Doesn't matter what people think. What matters is how the function works.

 

Too bad whatever the truth finally turns out to be, hey at least if it's true think of the great laptops deals that will be out there.

 

The market just took a dump on HP.
Job well done Mr. CEO. The news release timing is absolutely immaculate.
The announcement is JUST before a large back-to-school sale and a quarter before the consumer electronic holiday binge. This all likely drives the valuation of that division lower before the "spin-off/sell".
Acquisition in tech often ends in bust. $10 billion down the toilet.

How did this guy EVER end up at the top??!!

<---- Does not own HP stock.

 

Hey guys, I bought HP envy 14 few days ago and now I'm wondering whether I should return it or not... Will tech support still continues after HP close its PC line? I need a notebook for college but is it safe to buy it now? Thanks a lot!

 

They are not bankrupt hence they will honor all the warranties etc. If you have 3 years warranty it will be honored until the end of that term. Besides, who knows what will happen to Dell or any other manufacturer from now on since they are all having trouble keeping their margins. For some reason I have a feeling that this move will increase the cost of personal computers (including portable ones like tablets).

 

If you keep it, you would almost certainly continue to get support through the end of the laptop's warranty, even if you have a 5-year warranty. If you return it, you would definitely lose a restocking fee (15%?). I would just hold on to it.

 

HP is not necessarily closing its PC line. They are exploring their options. These options include keeping it, spinning it off, or keeping it. No matter which of these outcomes actually happens, your ENVY will be covered by warranty, you'll receive tech support, and you won't be hung out to dry.

 

You have plenty of reasons to return an Envy 14, namely the screen, the touchpad, the keyboard......you get the picture.

However, there are other less tangible reasons to return your Envy 14, such as resale value. A Macbook Pro has a stellar resale value, but can you say the same thing about an Envy 14? It's not that HP is liquidating its PC line in the same way as the Touchpad, although that's the new public (mis)conception?

Your best bet is to return it.

 

To be honest, I have mixed emotions about HP support. From experience, I'd say its acceptable for a notebook that's only a few hundred bucks, but I wouldn't accept it in the $1,000+ category.

And honestly, we don't know how HP will divest itself of the PC business, but judging by the rapid liquidation of the Touchpad.....the signs aren't positive for people who are concerned about long term support and resale values.

Right now, I'd return an Envy 14. Period.

 

Why would you return an ENVY 14?

The rapid liquidation of the Touchpad has thus far only happened in Canada, and that was only at two stores in Canada. Nobody can even say for sure that was ordered by HP either; the closest evidence to suggest that was only a rumor. This rumor, by the way, suggested that the price drops would happen in America starting today too... as I'm typing this, these price drops have not happened here. Thus, that rapid liquidation may not have had anything to do with HP.

HP announced they were discontinuing production of webOS devices. The fate of the Touchpad and other webOS devices is not tied to that of HPs PCs, and vice versa.

I just don't see what bearing this has on tech support. HP is not closing down its PC business, and may or may not be selling it/spinning it off. HP is not going out of business either. Whether or not somebody is happy with his/her level of support from HP will vary based on their personal experience, but what is happening at HP right now will not affect their level of tech support/warranty, for better or for worse.

I'm not even saying I love HP tech support either. I've been a Dell guy for the last 10 years until I got my ENVY last month. So far my experiences with HP tech support have been mixed. I'm just trying to say that I would not expect HP tech support to be affected by their announcements, for better or for worse, and I see all over the place that people are acting as if HP is going out of business or closing off their PC group immediately. Not happening.

 

This is clearly false... they are having a fire sale in the U.S. and every retailer is taking part in the liquidation. But on the brightside they are getting strong demand, free PR and flooding the market & hurting Apple all in one graceful move.... One can ever consider it a massive distraction.

 

Guess I missed where in America it's happening. I haven't seen it anywhere for less than the regular price, and I've looked at several websites, to include HP's, which says it's out of stock. Perhaps I missed something. Who is liquidating in America?

EDIT: Ok, I stand corrected. I guess everybody who dropped the price in America was sold out before I even rolled out of bed. My bad.

 

Most retailers are returning their stock to HP to liquidate. They might have a different agreement in Canada allowing BB to sell at a loss and getting reimbursed by HP.

 

No worries about Envy 14. I have got 7 years ago a Clevo 17" with no brand at all and was fixed. Besides this are big numbers laptops so components will always be available.

Clap clap!

 

Already? There is no confirmation of a sale. Or HP will sell it even for 1 dollar?

 

HP doesn't have a restocking fee. This news is no reason for anyone who recently bought an HP laptop to return it. Even if they do completely sell off their PC division to a different company, warranties will still be honored and I doubt much would change. I wouldn't worry about resale value, either, at least not anymore than any other PC.

 

How exactly is it hurting Apple if HP is ruining its own reputation by having an 80% off firesale on a few hundred thousand tablets when Apple is selling tens of millions at full price?

The only one getting hurt is HP. At a time when HP should be trying to boost the public image of its PC division for a potential sale, instead it's conducting the $85/99 Touchpad firesale, sending consumers the message that its liquidating inventory and going out of business.....when it isn't.....or is it?

 

Like I said: "the screen, the touchpad, the keyboard......"

But more than that, the Touchpad firesale leads me to believe that HP management is willing to take very drastic steps. I don't see HP committing to updates for WebOS for any defined period, and I don't see any assurances for Touchpad customers. Is HP going to stockpile spare parts or replacement units when they're liquidating the tablets at $85-99?

I've never seen this sort of panicked liquidation before from a company the size of HP and I wonder about the future of HP. There's nothing reassuring about recent developments.

 

I wouldn't mind if a company looking to get into the PC business like HTC purchased HP's PC division. Moreso HTC than Samsung.

Like the Lenovo acquisition of IBM's Thinkpad division back in 2005.

 

For the Touchpad, I agree. Owners are going to have to rely completely on 3rd-party support now and I feel for anyone who bought one from HP when it first came out, though I am sure they can get a refund if they try.

Their PC business is a different story, though. They aren't dropping PC's all together, they are just going to sell or spin-off their PC division. It is going to be the same thing as IBM/Lenovo back in 2005 and there is no reason for anyone who bought an HP laptop to worry

 

I see! Well I think I'll wait for my Envy 14 to deliver here and then see how it goes... Thank you all for giving me suggestions. I appreciate it! XD

 

a new post from the PSG of HP.

HP: A Toast to Opportunity

Either where they go, i'd probably still buy from them.

I really can't see myself buying from sony again nor buying dell products.

 

The news arrived just a few days after my purchase of Elitebook 8460p. I hope that HP and/or the new owner of the PC business will honor my 3-year warranty. ..So far, 8460p has been a great machine to me. Its built is sturdy and the craftmanship is first-rated.

 

I hope lenovo will acquire HP's pc division.

 

The HP Business machine division is growing and more profitable than the consumer side, although their announcement might hurt that going forward since no IT buyer wants to buy from a company that might abandon them 2-years from now. They'll have to do some damage control with their enterprise customers in the weeks ahead and come up with a good story / explanation of why it's still a good idea to go with HP products. Frankly I think HP should spin off their PC division if they really hate the drag it puts on their stock that much. A separate PC company might be more nimble, and at least free from being treated like the ugly duckling within the company if that's how it is.

 

So the Thinkpad would then be called Elitebook?

 

Thinkbook?

Elitepad?

^Elite Thinking.

 

ThinkElite?

 

So since their tablets are dirt cheap now ($99) should i pick one up? worth the investment even though there would be no support for it

 

That is a matter regarding your intended use for the device. I see no problem if you are looking to just surf the web and listen to music and play with some apps. Just don't expect anything new like updates and applications.

 

I had a fairly low opinion of the HP Touchpad when it was a live and expensive product, but now that it's dead and cheap, I have an even lower opinion.

In life, sometimes it pays to pay for quality. He who buys cheap buys twice. If you want an iPad, get an iPad, don't be tempted by an 80% discount on something you don't really want.

Besides the awful thick, cheap, heavy feel to the Touchpad, not to mention the slow and buggy interface, I noticed a large percentage of display models tend to be inoperative. I really have to wonder about reliability.

The thing that never ceases to amaze me is that despite the heavy use from an interested public, iPad display models always seem to be up and working, and not just in Apple stores, but in big box stores as well.

 

I just don't understand that HP would announce such plans, now people will be afraid to buy HP, and get something else instead that haven't planned to stop PC production.