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:

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

Between 2 Taps - Tap for Tap interview M...
Hello, and welcome back to Between 2 Taps, Tap for Tap’s Indie Dev interview series. [Read more] | Read more »
Facility 47 (Games)
Facility 47 1.0.1 Device: iOS Universal Category: Games Price: $3.99, Version: 1.0.1 (iTunes) Description: You wake up alone and freezing in an icy cell. You try the cell door but it’s locked, it seems that you are stuck with no... | Read more »
The best Photoshop alternative on iPad
Instagram and Lightroom are great and all, but sometimes people need to get extra creative with their image editing.Like, Photoshop creative. If you're one of these people, take a look at our pick for the best mobile Photoshop experience on iPad... | Read more »
The Walking Dead: No Man’s Land guide -...
A new update for The Walking Dead: No Man’s Land was released last week, making it the perfect time for you to head back to your base and take out some walkers. Here’s the lowdown on what’s new to the game, and how to take advantage. [Read more] | Read more »
Goat Rider guide - Tips and tricks to st...
We've all been there. One second, we're riding high on a crazed goat, and the next, we've been tossed off it like someone who's no good at goat ridin'. [Read more] | Read more »
Real Boxing 2 CREED: How to become a gre...
Just in time for Rocky fans who can’t wait to see CREED, the latest movie, we have the official tie-in game,Real Boxing 2 CREED. It builds on the success of its predecessor and there’s lots to take in so we at 148apps thought we’d run you through... | Read more »
CoinOp Heroes 2 guide - How to build an...
CoinOp Heroes 2 justlaunched and, like all clickers, it's dangerously addictive stuff. You have to furiously tap your screen to defeat wave after wave of foes and earn an insane amount of cash to spend on character upgrades and an army of minions... | Read more »
Dr. Panda Firefighters (Education)
Dr. Panda Firefighters 1.0.1 Device: iOS Universal Category: Education Price: $2.99, Version: 1.0.1 (iTunes) Description: FIGHT FIRES AND SAVE THE DAY!Work together with Dr. Panda and his firefighting team to rescue his trapped... | Read more »
Puddle + (Games)
Puddle + 1.0 Device: iOS iPhone Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: Puddle is back in a new "+" edition featuring enhanced graphics, new videos and Apple TV support ! No IAP and No Ads. Dive into Puddle... | Read more »
Football Manager Mobile 2016 (Games)
Football Manager Mobile 2016 7.0.0 Device: iOS Universal Category: Games Price: $8.99, Version: 7.0.0 (iTunes) Description: Football Manager Mobile 2016 is designed to be played on the move and is the quickest way to manage your... | Read more »

Price Scanner via

Adorama Black Friday deals: Up to $400 off Ma...
Adorama has released their Black Friday deals for 2015. Save up to $400 on MacBook Pros, $200 on MacBooks and MacBook Airs, and $270 on iMacs. Use code RYBFDEAL during checkout to see these prices.... Read more
B&H Photo Deals: $200 off 12-inch 1.2GHz...
In addition to the B&H Photo Black Friday week sales we posted yesterday, B&H has lowered their price on two products to $200 off MSRP: - 12″ 1.2GHz Gray Retina MacBook: $1399 save $200 - 13... Read more
Best Buy Early Access: Today only, Up to $125...
Best Buy has iPad Air 2s on sale for up to $125 off MSRP and Apple Watch models on sale on their online store for up to $100 off MSRP with special codes through midnight CT tonight. Choose free... Read more
UPPERCASE DESIGNS Premium Ultra Thin Keyboard...
UPPERCASE Designs today announced its new Premium Ultra Thin Keyboard Protector and its Palm Rest Protector Set for the 12-inch MacBook. The accessories provide durable protection for the 12-inch... Read more
Al Jazeera Launches New iOS And Android Mobil...
Doha, Qatar based Al Jazeera has launched new mobile and tablet apps on the iOS and Android systems bringing the latest Al Jazeera news and programmes live together with on-demand personalisation.... Read more
B&H Photo Holiday Sale: Up to $250 off Ma...
B&H Photo has all new Macs on sale for up to $500 off MSRP as part of their Holiday sale including free shipping plus NY sales tax only: - 15″ 2.2GHz Retina MacBook Pro: $1799 $200 off - 15″ 2.... Read more
Free Aura ‘Ultimate’ Mac App For Gmail Update...
Miami, Florida based Crosscoded has announced Aura 1.2.0, an update to the Mac app for Gmail. Aura mixes the power of a native client with the flexibility of the Gmail web app with support for up to... Read more
Apple Will Edge Closer to Samsung in Smartpho...
Total smartphone shipments for 2015 are projected to decline by 9.7% to 1.286 billion units, according to the latest report from global market research firm TrendForce. Though Chinese vendors have... Read more
Sidefari – Split Screen Multitasking In Safar...
Francisco Cantu’s Sidefari is a simple web browser designed to act as a companion to Safari on the iPad. With multitasking in iOS 9, Sidefari uses the new Safari View Controller to show an extra... Read more
12-inch MacBooks in stock for up to $120 off,...
Adorama has 12″ Retina MacBooks in stock for up to $120 off MSRP including free shipping plus NY & NJ sales tax only. For a limited time, Adorama will include a free Apple USB-C to USB Adapter,... Read more

Jobs Board

*Apple* Retail - Multiple Positions (US) - A...
Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
Merchant Operations Manager: *Apple* Pay -...
Changing the world is all in a day's work at Apple . If you love innovation, here's your chance to make a career of it. You'll work hard. But the job comes with more than Read more
*Apple* Pay QA Manager - Apple Inc. (United...
Changing the world is all in a day's work at Apple . If you love innovation, here's your chance to make a career of it. You'll work hard. But the job comes with more than Read more
Sr Software Engineer *Apple* Pay - Apple In...
Changing the world is all in a day's work at Apple . If you love innovation, here's your chance to make a career of it. You'll work hard. But the job comes with more than Read more
Hardware Systems Architect - *Apple* Watch...
# Hardware Systems Architect - Apple Watch Job Number: 38449977 Santa Clara Valley, Califo ia, United States Posted: Apr. 16, 2015 Weekly Hours: **Job Summary** The Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.