Aug 22, 2011

Why is HP leaving the PC business?

It doesn't make sense that HP, the most popular brand of PC's, printers, and servers, would abandon the PC market. They have more sales than Apple and Dell - why would they choose to abandon success?


HP's CEO doesn't want to compete with Dell, on a pc profit margin of only 5%. His goal is to transform HP into a software company with higher profits, to compete with Microsoft (33%), SAP (17%), and IBM (13%). The board of directors hired a CEO with software company management experience so that he could transform HP into a more profitable company, even though that means it's going to kill the products for which they have been traditionally known.

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