HP Ditches Consumer Market?
Since its been in the news a lot this week, I thought I should cover this topic. HP has the largest market share in the consumer PC Market, but sadly this aspect of their business has not been making them the money that they would have liked. Many years ago, IBM found themselves in a similar situation, and they found their way back to success buy focusing on the ‘Enterprise Market”
The Enterprise Market, for those of you who don’t know, is the bigger businesses that require vast amount of powerful and therefore expensive technology. Because they could sell their products for a larger amount of money, their profit margins would increase and make their business more lucrative. Another great thing about this market, is that there is much less competition from other companies. This means that there is much less pressure to reduce prices and that they could potentially build a better monopoly.
In the Consumer Industry, HP has found itself with an image problem. If people want expensive products that they can be proud to show off they will turn to a company such as Apple or AlienWare. HP puts itself in a position where people who own their computers feel a bit ‘meh’ about it. There is no braggability.
For us, this means that we will be seeing much less of HP in our homes over the coming years. We are also witnessing the death of Web OS and their Mobile marker, which has been seen as a great sham by some people, and as an unexpected outcome to others. Got an opinion? Leave a comment below or email email@example.com
- Hewlett-Packard overhaul leaves it as underdog (sfgate.com)
- The Rise and Fall of the HP Touchpad (pamil-visions.net)
- HP’s U-turn (bbc.co.uk)
- In nod to IBM, HP overhaul minimizes consumers (sfgate.com)
- Who should buy HP’s PC division? Samsung? Lenovo? (zdnet.com)
- The New New HP (mfinocchiaro.wordpress.com)