Hewlett Packard looks past the PC
The tech giant looks for a new leader - and new areas of leadership.
A hollow victory?
Hewlett-Packard has become the leader of a slowing category: personal computers.
The company had long sought to be the world's leading PC maker. Former CEO Carly Fiorina set the plan in motion with the 2001 Compaq merger. And under Hurd, HP overtook Dell and now controls 17% of sales.
The company had long sought to be the world's leading PC maker. Former CEO Carly Fiorina set the plan in motion with the 2001 Compaq merger. And under Hurd, HP overtook Dell and now controls 17% of sales.
But iPads and tablet computers threaten already-slowing PC growth. And UBS analyst Maynard Um says that "there is no sustained catalyst" to rev up PC purchases.
HP also controls 41% of another mature business: printers. As rivals have introduced cheaper consumer products, HP has settled on a strategy for growth there.
It is now concentrating on high-end devices for businesses. Last year the company boosted shipments of commercial printing hardware by 44%.
NEXT: Broadening its appeal
Last updated November 11 2010: 5:59 PM ET
Source: UBS, Edward Jones, Morningstar, Bloomberg, Morgan Stanley, company filings
