Greg's Bite: The Great HP Train Wreck, Mikey really likes it!
TweetFollow Us on Twitter

Greg's Bite: The Great HP Train Wreck, Mikey really likes it!

Posted by Greg Mills

The Great HP Train Wreck, Mikey likes it, Michel Dell that is. The immediate stock market reaction to the HP implosion was that HP stock went down 20% and Dell went up 7%. The gut reaction of the market to the HP reorganization was sort of as if HP had done the seppuku ceremony where the ancient Japanese publicly cut their own belly open with a sharp knife. A gory, painful and dramatic way to die, indeed, but it sure makes a statement. The age of the PC is over, long live iPad, to paraphrase Steve Jobs.

Part of the problem for HP is with the general perception of the public that the consumer PC manufacturing division of HP was the bulk of their business. That turns out to not be true, since the profit margins of HP PCs is so low, the manufacturing arm of HP wasn't the money maker the pubic imagined. The misconception also comes from the public face of HP, the consumer products that splash the HP logo everywhere. When I think of HP, I think of cheap printers and expensive ink cartridges cleverly designed to keep me from refilling them.

Another part of the public perception of HP is that the business end of HP they hope to enhance isn't as well known outside of business circles. Server and business software is a big business, so HP will trade the likes of Dell and the other PC box assemblers for competitors in business service companies like IBM, Cisco and Oracle.

Only time will tell whether HP was really smart or really stupid, but the move was "really" something. IBM got out of hardware and concentrated on business software successfully, HP has a much harder row to hoe due to both the weak economy and the fact that the two businesses are not that similar. HP was heavily invested in consumer hardware and the prospects for really cashing out of that business isn't too bright. No one in the PC assembly business is big enough to buy the entire HP hardware business so it will be cut up like a fattened steer.

I have read the prognostication of a number of analysts who figure Dell may be the big winner in all this. The massive change in the industry that led HP to cut its losses and get out of the low profit PC business won't benefit Dell any more that it did HP. Apple is likely to continue to suck up a larger share of the declining PC business with its Mac division, which as grown every quarter for 5 years, as mobile grows dramatically with little real competition for Apple.

The cut throat business of assembling lack luster PCs, that just work, but have no magic, will continue to be a soft business from a profit stand point for who ever survives. I expect Apple and the other PC makers to divide the market share HP is abandoning, rather than expecting one competitor to steal the whole thing. I don't look for Windows machines to jump in price due to HP pulling out, there is too much competition.

That the market is going mobile in the form of tablets and smartphones is evident to the entire industry. HP knew the Palm acquisition and the TouchPad and Palm based smartphones were critical to the long term survival of their business. When the Palm product line failed, HP figured they had better get into another line of business, and they did.

Look for a considerable number of HP employees to be hitting the job market soon and for HP to carve its hardware business up into small enough chunks to be able to sell them off. HP will look much different a year from now. When you see the dramatic moves HP made since they realized they were shut out of the mobile computer market by the failure of TouchPad, the combining of the Apple Lion and iOS platforms clearly shows the way Apple sees the future. Mobile rules!

The MacBook Air and iPad will dominate the Apple consumer computer market soon enough. WiFi devices with hard drives allow mobile flash memory devices with limited memory on board to access those hard drives locally as sort of a wireless server mode. The mobile devices also use the Cloud when mobile and I expect MacBook Air to be available with cellular radios soon.

I look for Apple to slim their product line down again soon. The prospects for a larger iPad is likely as the screen resolution of iPad and apps increase under iOS 5, putting an HD screen on a larger iPad becomes less daunting with easy scaleability. The Apple iPad is just too great a product to remain a one size fits all product.

Samsung and the other handset makers are, as Steve Jobs famously put it, flummoxed by Apple's category defining mobile products. With Palm having bitten the dust, the viable mobile operating systems are left to sort out the survivors.

The recent move by Google to purchase Motorola has upset the remaining Android handset makers more than Google expected. Samsung is dusting off their proprietary OS called "Bada" which is the word Ocean in Korean. To Samsung the answer to the Android bag of hurt is to fragment the handset market even more, by adding its own new platform to the mix at the very same time HP failed with the Palm OS. See: http://gizmodo.com/5401326/why-did-samsung-just-announce-another-mobile-os

Fragmenting the Android OS and having a slew of smaller mobile platforms to compete with is to Apple's advantage. After all, developers can only support so many platforms. In politics the mantra is that "all politics is local" while in the smartphone and touch screen tablet world, the mantra is that "it is all about apps".

Creating a modern mobile platform, attracting and supporting app developers, managing an app store and supplying a desirable hardware selection and then marketing it to a somewhat jaded market place dominated for over four years by Apple, is no easy task. Just ask RIM.

Does the world need another mobile OS? I don't think so but Samsung has the resources to launch a spectacular disaster in the fashion of the recent HP train wreck. Apple just continues to be Apple as the industry sees desperation and disasters in Steve Job's wake. That's Greg's Bite anyway

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

TinkerTool 5.4 - Expanded preference set...
TinkerTool is an application that gives you access to additional preference settings Apple has built into Mac OS X. This allows to activate hidden features in the operating system and in some of the... Read more
Tinderbox 6.3.1 - Store and organize you...
Tinderbox is a personal content management assistant. It stores your notes, ideas, and plans. It can help you organize and understand them. And Tinderbox helps you share ideas through Web journals... Read more
Parallels Desktop 10.2.2 - Run Windows a...
Parallels Desktop is simply the world's bestselling, top-rated, and most trusted solution for running Windows applications on your Mac. With Parallels Desktop for Mac, you can seamlessly run both... Read more
Adobe Premiere Pro CC 2015 9.0.1 - Digit...
Premiere Pro CC 2015 is available as part of Adobe Creative Cloud for as little as $19.99/month (or $9.99/month if you're a previous Premiere Pro customer). Premiere Pro CS6 is still available for... Read more
Adobe After Effects CC 2015 13.5.1 - Cre...
After Effects CC 2015 is available as part of Adobe Creative Cloud for as little as $19.99/month (or $9.99/month if you're a previous After Effects customer). After Effects CS6 is still available... Read more
Adobe Creative Cloud 2.2.0.129 - Access...
Adobe Creative Cloud costs $49.99/month (or less if you're a previous Creative Suite customer). Creative Suite 6 is still available for purchase (without a monthly plan) if you prefer. Introducing... Read more
Tower 2.2.3 - Version control with Git m...
Tower is a powerful Git client for OS X that makes using Git easy and more efficient. Users benefit from its elegant and comprehensive interface and a feature set that lets them enjoy the full power... Read more
Apple Java 2015-001 - For OS X 10.7, 10....
Apple Java for OS X 2015-001 installs the legacy Java 6 runtime for OS X 10.11 El Capitan, OS X 10.10 Yosemite, OS X 10.9 Mavericks, OS X 10.8 Mountain Lion, and OS X 10.7 Lion. This package is... Read more
Adobe Muse CC 2015 2015.0.1 - Design and...
Muse CC 2015 is available as part of Adobe Creative Cloud for as little as $14.99/month (or $9.99/month if you're a previous Muse customer). Muse CS6 is still available for purchase (without a... Read more
Adobe Illustrator CC 2015 19.1.0 - Profe...
Illustrator CC 2015 is available as part of Adobe Creative Cloud for as little as $19.99/month (or $9.99/month if you're a previous Illustrator customer). Illustrator CS6 is still available for... Read more

Tap Delay (Music)
Tap Delay 1.0.0 Device: iOS Universal Category: Music Price: $4.99, Version: 1.0.0 (iTunes) Description: Back in the “old days”, producers and engineers created delay and echo effects using tape machines. Tap Delay combines the warm... | Read more »
This Week at 148Apps: July 20-24, 2015
July is Heating Up With 148Apps How do you know what apps are worth your time and money? Just look to the review team at 148Apps. We sort through the chaos and find the apps you're looking for. The ones we love become Editor’s Choice, standing out... | Read more »
Red Game Without A Great Name (Games)
Red Game Without A Great Name 1.0.3 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0.3 (iTunes) Description: The mechanical bird is flying through an unfriendly, Steampunk world. Help it avoid obstacles and deadly... | Read more »
Warhammer: Arcane Magic (Games)
Warhammer: Arcane Magic 1.0.2 Device: iOS Universal Category: Games Price: $9.99, Version: 1.0.2 (iTunes) Description: Engage in epic battles and tactical gameplay that challenge both novice and veteran in Warhammer: Arcane Magic, a... | Read more »
Mazes of Karradash (Games)
Mazes of Karradash 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: The city of Karradash is under attack: the monsters of the Shadow Realms are emerging from the depths.No adventurer is... | Read more »
Battle Golf is the Newest Game from the...
Wrassling was a pretty weird - and equally great - little wressling game. Now the developers, Folmer Kelly and Colin Lane, have turned their attention to a different sport: golfing. This is gonna be weird. [Read more] | Read more »
Qbert Rebooted has the App Store Going...
The weird little orange... whatever... is back, mostly thanks to that movie which shall remain nameless (you know the one). But anyway it's been "rebooted" and now you can play the fancy-looking Qbert Rebooted on iOS devices. [Read more] | Read more »
Giant Monsters Run Amok in The Sandbox...
So The Sandbox has just hit version number 1.99987 (seriously), and it's added a lot more stuff. Just like every other update, really. [Read more] | Read more »
Fish Pond Park (Games)
Fish Pond Park 1.0.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0.0 (iTunes) Description: Nurture an idyllic slice of tourist's heaven into the top nature spot of the nation, furnishing it with a variety of... | Read more »
Look after Baby Buddy on your Apple Watc...
Parigami Gold is the new premium version of the match three puzzler that includes Apple Watch support and all new content. You won't simply be sliding tiles around on your wrist, the Apple Watch companion app is an all new mini-game in itself. You'... | Read more »

Price Scanner via MacPrices.net

2.8GHz Mac mini available for $988, includes...
Adorama has the 2.8GHz Mac mini available for $988, $11 off MSRP, including a free copy of Apple’s 3-Year AppleCare Protection Plan. Shipping is free, and Adorama charges sales tax in NY & NJ... Read more
Sale! 13″ 1.6GHz/256GB MacBook Air for $1099,...
B&H Photo has the 13″ 1.6GHz/256GB MacBook Air on sale for $1099 including free shipping plus NY tax only. Their price is $100 off MSRP, and it’s the lowest price available for this model. Read more
iPad mini 4 To Be Upgraded To iPad Air 2 Spec...
There’s a certain inevitability about making Apple product predictions this time of year. Come September, we can pretty reliably count on the release of refreshed iPhones, along with the iOS 9... Read more
Apple restocks refurbished Mac minis for up t...
The Apple Store has restocked Apple Certified Refurbished 2014 Mac minis, with models available starting at $419. Apple’s one-year warranty is included with each mini, and shipping is free: - 1.4GHz... Read more
13-inch 2.5GHz MacBook Pro on sale for $899,...
Best Buy has the 13″ 2.5GHz MacBook Pro available for $899.99 on their online store. Choose free shipping or free instant local store pickup (if available). Their price is $200 off MSRP. Price is... Read more
21-inch 2.9GHz iMac on sale for $1299, save $...
Best Buy has the 21″ 2.9GHz iMac on sale today for $1299.99 on their online store. Choose free shipping or free local store pickup (if available). Their price is $200 off MSRP, and it’s the lowest... Read more
Free Image Sizer 1.3 for iOS Offers Photo Edi...
Xi’An, China based G-Power has announced the release of Image Sizer 1.3 for the iPhone, iPad, and iPod touch, an important update to their free photo editing app. Image Sizer’s collection of easy to... Read more
Sale! 13″ 1.6GHz/128GB MacBook Air for $899,...
B&H Photo has the 13″ 1.6GHz/128GB MacBook Air on sale for $899 including free shipping plus NY tax only. Their price is $100 off MSRP, and it’s the lowest price available for this model. Read more
13-inch Retina MacBook Pros on sale for $100...
Best Buy has 13-inch Retina MacBook Pros on sale for $100 off MSRP on their online store. Choose free shipping or free local store pickup (if available). Prices are for online orders only, in-store... Read more
Will BMW’s i3 Electric Vehicle Be The Automo...
The German-language business journal Manager Magazin’s Michael Freitag reports that Apple and the German performance/luxury automaker Bayerishe Motoren Werke (BMW) are back at far-reaching... Read more

Jobs Board

*Apple* Retail - Multiple Positions (US) - A...
Job Description: Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
*Apple* Retail - Multiple Positions (US) - A...
Job Description: Sales. Specialist - Retail Customer Service and Sales. Transform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
*Apple* Customer Experience (ACE) Leader - A...
…management to deliver on business objectives Training partner store staff on Apple products, services, and merchandising guidelines Coaching partner store staff on Read more
Project Manager - *Apple* Pay Security - Ap...
**Job Summary** The Apple Pay Security team is seeking a highly organized, results-driven Project Manager to drive the development of Apple Pay Security. If you are Read more
*Apple* TV Product Design Internship (Spring...
…the mechanical design effort associated with creating world-class products with the Apple TV PD Group. Responsibilities will include working closely with manufacturing, Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.