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Technology Stocks : HWP -- Hewlett Packard
HPQ 24.43+1.9%12:59 PM EST

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To: Oeconomicus who wrote (3749)12/10/2001 3:23:18 PM
From: BelowTheCrowd  Read Replies (1) of 4722
 
The consumer PC business has always been a money loser. Selling through retailers, it's a losing game. The retailers (CompUSA, Best Buy, Wal Mart, etc.) have virtually all the power. They will trade you off feature for feature and dollar for dollar against all your competitors, force you to drop your prices to the point where you can't deliver a good product or good service, and leave you hanging with a rep for making products that don't work, that don't have good support, etc.

Unfortunately, because of HPs tight relationship with retailers on the printer side, they can't easily just dump them and go direct. HP has always had to temper its direct efforts to keep the retailers happy that they weren't competing with a supplier. I don't know that there's any way around those issues.

I would like to see HP put a lot more effort into non-PC information devices. The Jornada series are a great jumping-off point, but I really think there's a bigger opportunity for fuller-featured devices if somebody with a real consumer market presence tried to pursue it.

Agree with you on software and services. The mindset there is completely wrong. Nobody has ever successfully gotten into services by buying a service organization.

mg
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