HWP -- Hewlett Packard Message Board

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Technology Stocks : HWP -- Hewlett Packard

HPQ 19.71

+2.9%

2:43 PM EST

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To: Ramsey Su who wrote (2805)	1/7/1999 2:25:00 PM
From: BelowTheCrowd	Read Replies (1) of 4722

Ramsey, In this business only one thing is certain. Either you cannibalize your own business, or somebody else will. Or as Andy Grove likes to put it, "You've got to be your own toughest competitor." Entry Level printer prices are declining. Period. HWP is losing market share to low-cost printers made by other people. Period. HWP can either come up with a way to compete at the low end or lose the business completely. They decided that the best way to do it is to form a new subsidiary, free of the "normal" HWP overhead. Probably a good move. Overhead kills a lot of low margin products. mg

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