Hewlett-Packard overhaul exposes underdog status |
| Wall Street Journal - Aug 19, 2011 |
Hewlett-Packard, one of the world's largest technology companies, finds itself the underdog as it ditches most of its consumer businesses to become more like the well-oiled, corporate-focused machines of rivals IBM and Oracle.
HP will no longer make smartphones and tablet computers and wants to leave the PC business after spending a decade assembling itself into a technology conglomerate by buying such companies as computer maker Compaq Computer for $19 billion in 2002 and smartphone pioneer Palm for $1.8 billion last year.
HP's stock plunged 20 percent on Friday, a day after the restructuring announcement. That's a strong signal that investors are doubtful about HP's ability to thrive without businesses that have helped set it apart from rivals. Even though the PC division that HP wants to sell or spin off is the company's least profitable, it accounts for nearly a third of revenue.
Read Full Article from Wall Street Journal
- Posted: 2011-08-19 16:25:33
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