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HP expects good news in fiscal 2014

HP was once one of the most profitable and stable companies in the technology and computer industry. The company's fortunes have changed as more consumers move away from traditional desktop and notebook computers to tablets and smartphones. HP CEO Meg Whitman issued a warning yesterday of an unexpectedly severe decline in earnings for fiscal 2013. 
 
The announcement warned investors and analysts that revenue would fall in every single HP division except software. The decline in revenue sent shares in HP plunging to a nine-year low. Whitman has been banking on transforming HP into a significant player in the enterprise computing environment to take on both IBM and Dell.
 
Analysts on Wall Street hoped for better signs of progress on Whitman's plan to turn the ailing computer giant around. Whitman told investors that signs of recovery for HP would become visible in fiscal 2014 when the company's investments begin to pay off. Blame is placed on an unexpected executive turnover during the past several years as a reason for delaying the turnaround at HP.
 
"I was surprised that nothing new was really said in terms of strategy, and the problem here is there is lack of investor confidence in the current strategy," said Shaw Wu, an analyst with Sterne Agee.
 


HP CEO Meg Whitman [Image Source: Silicon Angle]
 
On Wednesday, HP's stock price declined by 13% marking the largest single-day decline since August of 2011. HP's enterprise services division is looking at a particularly dark outlook. Revenue from HP's enterprise services division is expected to decline between 11 and 13% for fiscal 2013 while barely turning a profit. Reuters reports that operating margins for the enterprise services division will be somewhere in the range of 0 to 3%.
 
"The single biggest challenge facing Hewlett-Packard has been changes in CEOs and executive leadership, which has caused multiple inconsistent strategic choices, and frankly some significant executional miscues," Whitman told the investor conference in San Francisco.
 
"This is important because as a result it is going to take longer to right this ship than any of us would like," she added.

Sources: Reuters, HP



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RE: making great products
By bupkus on 10/4/2012 10:50:21 AM , Rating: 2
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plastic garbage
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as bad as gateway/dell/generic
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and ipaq devices were clunky and tied down with a MS OS
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tablets failed catastrophically
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yet another aluminum gray tablet running garbage windows 8
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Add to that the stylus
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yet another failure
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black hole of incompetence
After dissing everyone who is left? So MS's Win 8 is so bad buyers will all switch over to what... Android? Let me guess, do you think gateway, dell and others should use OS X?
Yes, HP is in for a rough ride for the next-- whatever.
I hope they turn this around even if "everyone" is buying tablets. I own 2, one a touchpad and a nexus 7. I like them both. For watching movies or playing Angry Birds my wife like the tp. For straining my eyes I like the Nexus-- truthfully I need new reading glasses.
All I know about purchasing is until Apple drops their prices I won't even consider buying from them. My 2 tablets cost me a little over $350. I got a used Dell laptop, installed an SSD and wow, reborn.
You are so sour on plastic but, okay, that's how you feel. I would like MORE of everything but if you treat your stuff with a little respect and not toss it around it can last a good long time.


"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA

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