The so-called “death of the PC” is a phrase that usually accompanies any news involving PC manufacturers such as Hewlett-Packard (HPQ) and Dell (DELL). Microsoft (MSFT), which produces the Windows OS that drive PCs, is usually discussed in connection with the “death of the PC”. However, HP is strategically positioning itself to defy the status quo. In this article, I will address the factors that could see HP emerging as a winner in the long story of the dying PC.
It is a well-known fact that cutting costs in order to attain profitability is not always the best course of action, because there is only so much cost cutting that you can do before you are up against a brick wall. However, the history of HP starting from Carly Fiorina through Mark Hurd to Leo Apotheker is filled with different cost cutting techniques and the occasional management blunder.
The closing of a German subsidiary of HP that would see to the laying of 850 workers is a step in the direction of a long line of layoffs that could help HP increase its long-term value. The public may not like layoffs. Yet, the fact remains that it cannot be avoided in some cases.
Another point that doomsayers would love to use in backing the “death of the PC” theory is the shrinking market and demand for PCs. Microsoft’s net income for Q1 2013 dropped by almost 22%, and it shows a steady decline in the demand for the dear old PC. To continue reading, click here.