subject: Hp's Prospect Remains Uncertain [print this page] The analysts said that, although HP decided to keep the PC business, the company's prospects are still uncertain. In the second day after it decided to reserve the PC business, Hewlett-Packard's shares rose. The news put an end to the concerns of the outside world that the world's largest PC maker may withdraw from the business.
But while investors are optimistic about this decision, some analysts still question the prospects of this giant of the industry as the company is facing its most turbulent era of the history. The analysts said that Hewlett-Packard's experience in the past 14 months is the most typical example of self-destruction.
Hewlett-Packard's CEO Meg Whitman announced that it will retain the PC business. She said Hewlett-Packard is better to stay together with the company's personal systems group. Since HP's former CEO Leo Apotheker announced that the company was considering stripping PC business, there is uncertainty surrounding the business.
By combining years of real estate, finance, human resources and IT and other fields, Hewlett-Packard has obtained strategic and financial advantages. If spinning off the PC, we will lose a lot of that advantage. Whitman said that ultimately, the spin-off's costs and risks may be greater than the value we may obtain.
While this may end up some uncertainty, but analysts worry that HP's turmoil is far from over. HP has become a weak and threatened company. The analysts urged investors to temper reduction until the situation is stable. He said that this unstable situation has been fully reflected in the past three months. Damage has occurred.
Apotheker even revealed that HP was considering stripping the PC business in the absence of a clear plan, which shocked the analysts in particular. They believe that giving up PC business will result in huge loss of HP's supply chain advantage. Whitman also agreed with this viewand admitted that the move may hurt the brand of HP. The analyst said Whitman tries to make the company's future development direction by a rapid response, reducing the uncertainty of HP's strategy.
However, the specific direction of development is still in dispute. Indeed, some analysts believe that HP should give up its PC business to abandon the low-margin consumer market, instead focusing on more profitable corporate market. Marshall said that Given HP's status quo, keeping the PC business may be reasonable. But we expect in the next three to five years, HP will instead focus on the enterprise infrastructure, which is similar to IBM's move at the end of 2004.
