For those unaware, HP is the biggest consumer PC Company in the world. Yet, they shocked the world some time back announcing that it may consider selling the PC business and instead concentrate on the enterprise market. How did this happen. I know the numbers tell a pleasant story. So how could anyone explain why the biggest pc maker in the world wants to do away with its biggest asset?
Numbers hide more than they reveal, a common saying. For HP it isn’t about how big their PC market is. Its about how much money they make of it. And that’s where numbers reveal true story. A 100 million. A paltry sum if you consider the revenue they have. So it might make sense somewhat to go for the more profitable enterprise market. But maybe HP is taking this decision in haste. They are not looking at the future. As they should know, the biggest revolution in PC industry since Windows 95 is on its way. It’s just a year late. Windows 8.
Windows 8 is the new operating system from Microsoft. It’s predominantly touch focused OS but is fully compatible with (legacy??) keyboard and mouse.
Why do I believe it can save HP?
I not only believe that. I believe it can save every company from the iDominance. Apple is now the biggest tech company in the world because its products are, to dumb it down completely, simple. Everything is easy to understand and they are beautiful. They are innovative. And that’s why people pay a premium for it.
Now if HP makes premium products and price it comparatively, people tend to buy apple products. Cause these PC don’t provide extra worth than apple (not counting specs, because for 90% of people dual core and single core is same as long as it’s smooth). Here’s where Windows 8 will help. Now finally HP can innovate. They can wake touchpad from the dead and fill it with Windows 8. They can release a new Envy (one of the most beautiful laptops by the way), and fit it with a touch panel. They can finally make a touch enabled all-in-one without the need of their often clumsy touch layer over Windows 7. And they can charge premium for it. So now the fun begins. What would a customer choose. Will he choose a macbook air with osX lion? Or will he choose a HP envy with touch enabled screen and a beautiful interface. This time I think, HP might win. If cards are played right, HP can again be the true leader of PC industry that it once was before Steve Jobs. Because finally, customers can accept something more from windows products than apple products. All HP has to do is make better hardware for it, which I believe they have the capability to. Just look at Envy line of laptops and their all-in-ones. Now the customers would know that if they buy a HP product over apple, they will get more value, even if the price is same. Just the right marketing would do the trick.
Let’s hope HP doesn’t surrender. Just face one more year of apple dominance HP. Help is on its way. Who knows, maybe by next year even you have more cash reserves than the US treasury.
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