Biggs is the editor of TechCrunch gadgets. Biggs wrote for the New York Times, InSync, United States at the weekend, popular mechanics, popular science, money, and a number of other outlets on technology and wristwatches. He is the former Chief Editor of Gizmodo.com and lives in Bay Ridge, Brooklyn. You can Tweet it here and G + it here. ? Read More
If you look closely at why HP jumped on PCs and other electronics, there are several easy and clear reasons. The bulk of them? HP has been number one in sales, but – at least Amplicate arguably losing methodology – number seven in mindshare. In the end, it looks like it is better to let someone flog hardware, while HP made and what she always did best: tell companies how to spend money in tech.
So who takes for HP? Well according to a report by Digitimes, it looks like HP will be handing the keys of their brand over to Samsung, IBM, where she partnered with Lenovo to sell laptops and PCS.
Samsung has used quanta, COMPAL and Pegatron – three major producers – consider outsourcing orders. Digitimes piece focuses on netbooks, but it is clear that this step will reduce the price of Samsung products and enable the company to ramp up in order to capture 40 million-strong business unit of HP and maintain your own profitable trading.
Therefore, we have established a motive, we identified some of the perpetrators, but we have not yet established deadlines. Why now? Why so suddenly? Gruber nails it:
The point is that the relevant experience of Apotheker served as CEO of SAP. What is SAP? SAP-business software and consulting companies. Honestly we all should have seen this coming. Enterprise Consulting guy did not turn around PC and device maker. You bring in a consulting company to make computer and Guy device maker in the business consulting company.
Whether HP goes to Samsung, Sony, or Asus is immaterial. It should be noted is that Asian manufacturers own market and people like Dell and HP saw the writing on the wall. Why compete in low stock equipment when you can sell brand and let it live on – or not – to another manufacturer. Samsung will kill HP in United States sales numbers.
The problem, however, is that HP commands are not respected in the market. This is where IBM/Lenovo comparison breaks down. ThinkPad line was historically a workhorse, is considered by many Apotheosis fleet laptop. If you were a business traveller in the later 90 's/early-mid-aughts would you like to stay at the ThinkPad and reluctantly agreed to Dell or HP. in addition to the Dell dude who ever was happy to get big name laptop from these companies? Alienware Area 51, perhaps. Dell Inspiron, not so much.
Why HP sheds shackle and with Samsung in productive capacity that guard becomes another link to the manufacturer of the golden chain. HP sunsets over the next decade, departed dog world sales of equipment and it becomes as charmingly quaint IBM consultant in his pinstriped wool suit and white shirt. Why play in messy, cyclical world equipment, complete fickle, consumer complaints, when you can take $ 500 million for the tax system in Arizona. When the recession ends, organizational expenses will pop a cork and HP will be initiated to take a drink.
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