Hewlett-Packard Company (HPQ) Decides to Take the Obvious Path, Finally!

Page 1 of 2

Almost two and a half years ago, Steve Jobs, the late Apple Inc. (NASDAQ:AAPL) CEO, made a comment where he compared traditional computers to trucks. In the words of the iconic CEO,

When we were an agrarian nation, all cars were trucks because that’s what you needed on the farms. Cars became more popular as cities rose, and things like power steering and automatic transmission became popular. PCs are going to be like trucks. They are still going to be around…they are going to be one out of x people.

Now, in 2013, it seems the words of Mr. Jobs are coming true. The ever-dynamic nature of the consumer electronic space has created as well as destroyed competition. We have already observed that the PC market is gradually declining, whereas the smartphone and the tablet markets are gaining more and more momentum. What Apple realized back in 2010, Hewlett-Packard Company(NYSE:HPQ) finally truly realized now, after reporting a record loss of $12.7 billion in 2012.

Hewlett-Packard Company (NYSE:HPQ)

CEO Meg Whitman recently confirmed that the company is looking at entering the smartphone and tablet space, and is also working on storage, networking, and servers. Meg’s statement “I mean company’s like us come back on the basis of great products, great services, that solve really tough problems” clearly tells us that the CEO is pretty optimistic about what is being cooked at HP’s kitchen. She hopes these new fantastic devices will finally make things better for the troubled computer maker.

Now, why did I use “finally” and “truly?” That’s because this won’t be the first time that HP has ventured into this segment of the consumer electronics space. Around two years ago, HP acquired Palm for $1.2 billion and within months since the acquisition, the company had launched a smartphone under the Palm banner. However, things didn’t work out and soon HP decided to close the door on it. The company decided to focus only on what it was best at – making computers, and the rest is known to all of us. HP continues reporting huge losses, its PC shipments went on plunging quarter after quarter, and the company also saw a change in management.

However, under the leadership of Meg Whitman, things have a chance to improve. The CEO is highly focused on getting new innovations out in the market and is banking on them heavily. Earlier, in September, as pointed out by All Things D, Meg stated

We have to ultimately offer a smartphone because in many countries of the world that is your first computing device. You know, there will be countries around the world where people may never own a tablet, or a PC or a desktop. They will do everything on the smartphone. We’re a computing company; we have to take advantage of that form factor. … We did take a detour into smartphones, and we’ve got to get it right this time. My mantra to the team is: ‘Better right than faster than we should be there.’ So we’re working to make sure that when we do this, it will be the right thing for Hewlett-Packard, and we will be successful.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!