Why Hewlett-Packard needs to stop selling computers
If CEO Meg Whitman doesn't completely reinvent the company, HP will end up like Kodak or BlackBerry -- just another case study in corporate neglect.
By Rocco Pendola
NEW YORK (TheStreet) -- The tech gods organized this recall, even if temporary, of the $279 Chromebook laptop that Hewlett-Packard (HPQ) made for Google (GOOG). They want HP out of the business of making computers because it's an artist formerly known as RIM-like embarrassment that they're still in it.
Laptops. Tablets. Potentially a smartphone. Printers. These things spell certain death.
Kodak, as TheStreet's Joe Deaux so perfectly chronicled this past summer, had the first digital camera. RIM previewed the notion of the smartphone with the original BlackBerry. Neither company could see things through.
It's exactly the same situation at HP with one major exception: HP has got nothing. It doesn't have some great technology it can morph into a game changer. It doesn't have a device that predates Apple's (AAPL) iPhone. It's got nothing.
The sooner Meg Whitman realizes this, the better.
If Whitman's any kind of leader, she'll acknowledge that HP has nothing, take the void and turn it into something meaningful. That's a gargantuan task. But, given how often we're told Whitman is such a great leader and CEO, she should be up to it.
We laud Whitman because we consider the turnaround of something that already exists -- HP's largely pathetic business -- more likely than fresh success after tearing something apart and putting it back together again. If you think about it, this is quite a weak endorsement.
A great leader would look at Hewlett Packard, realize the current iteration has no chance of success against a company such as Apple, and reject the same culture of obviousness that plagues most brick-and-mortar retailers. A great leader would earn her respect by undertaking a wholesale transformation of a dying business. She would reinvent Hewlett-Packard, turning it into something unrecognizable to itself.
But she won't. She will not take this Chromebook recall as a sign. Instead, she'll turn a blind eye, stubbornly forge ahead and fail miserably.
History will not take the time to distinguish Kodak from Blackberry and Blackberry from HP. And it shouldn't. It will just line up HP as another case study in corporate neglect and abject failure.
More from TheStreet.com:
This has got to be the most bias/discriminative article I've yet to read. The quality of MSN information has taken a tremendous hit to their credibility by publishing/pushing such garbage on consumers and investors alike. This is one of the worst examples of objectivity that I've seen to date.
HP is a great computer and I recommend them to all my clients when they need something new or better that is suited to their price range and need. It would be all to simple to make a heading that fits the given information. HP may not be making a big splash in the mobile market but they are still one of the best computers you can buy today.
International Hundreds of Billions USDs per year:
The Majority of HP's Business is providing Work Stations, Desktop Business Grade Computers, Servers, high end Laser Printers, etc. to Big Businesses, US Government Agencies, and the US Military (including in USN Ships and USN Submarines). Including Computers with extremely high end Video Cards (almost a computer only used to process video and photos), that Laptops, Tablets, Pads, etc. cannot have (physical size); for beyond 1080p (HQ, HD) Resolutions, that are also used in the Medical Profession (Visual detection of Medical problems not visable to the unaided human eye).
NOT the public "Consumer" Market. Hundreds of Millions USDs per year.
the only PC i ever buy is HP...good quality...if they screwed up one thing...no big deal...what they need to do is go after the private industry and push Dell to the side
Most computers and printers have more capability than most owners want, but less reliability and less life and less
simplicity. Customers don't like that arrangement, and it doesn't have to be that way.
If HP should stop selling computers, then so should Apple. But yet, I don't hear anyone telling Apple that they should stop selling Macs, despite the fact that their iPhones and iPads outsells all their Macs by almost 5 to 1. What HP should start doing is making their own smartphones and tablets so they can compete better with Apple and Samsung in the mobile market, while they can still continue to make PCs for consumers who still want them. Besides, most people fail to realize that smartphones and tablets ARE computers, so even if HP stopped making PCs and started making phones and tablets, they'll still be making computers anyway.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Start investing in technology companies with help from financial writers and experts who know the industry best. Learn what to look for in a technology company to make the right investment decisions.
The ride-sharing startup continues its push into the mainstream by partnering with service industry stalwarts.
VIDEO ON MSN MONEY
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'