AP Press just reported today that HP is exiting the consumer electronics business. Recently HP started shipping the HP Tablet, which a couple weekends ago was marked down by $100, typically a bad sign. HP spent $1.8B on Palm two years ago to get webOS, which is the OS used to power the HP smartphones and tablet. I thought after the Microsoft debacle of shipping the Kin and then canning it weeks after shipping it was a mistake that no other company would follow!
However, for me, the biggest shock is that HP is exiting the personal computer business. If you can remember back a decade ago, there was a bitter take over battle that cost HP $24 BILLLION to acquire Compaq. At the time, that made HP the largest PC manufacturer in the world.
Today HP's PC business is the largest revenue generator, but also the least profitable division.
I'm still kind of in shock, being an old PC guy, that this is actually occuring (the exit from the PC business). I'm not entirely surprised that HP is exiting the mobile market, there is just too much competition and they are battling for last place on smartphone with Microsoft's Windows Phone. While they have the jump on Microsoft for last place for tablet (i.e. Slate 8 hasn't even shipped yet), it is hard to carve out space in the tablet arena with Apple and Google's Android tablet devices.
For me, I guess it is just a reality check of where things are headed. This year, there should/will be more smartphone's and tablets sold than PC's and notebooks. That's a pretty big thing! It definitely is a trend.
Personally, I've had a history with HP. I've done worth with them at Disney's "Home of the Future" and I personally have the HP Windows Home Server and the HP Touchsmart, which is, IMO, a very innovative product. I also have a HP mini-tower that is still a screamer and really like their ultra flat wireless keyboard. (I am typing this post on a HP keyboard!).
So, it is with a saddened heart that I say "farewell" to an industry friend that I have known since my early PC days. I guess it is an omen of things to come for the PC industry (even with Dell downgrading it's revenue growth moving forward).













