HP to Drop PCs and Touchpads

The number one PC retailer is now shifting its focus towards more software related products by abandoning PCs and touchpads. HP is right above Apple when it comes to desktop and laptop related sales. However, because Apple’s products are placed at a higher price, it takes HP seven computers to match the profits that Apple retains by selling just one computer. As a result of diminishing returns due to competitive pricing with other PC retailers, HP has decided to sell off its PC group in order to move to potentially more lucrative prospects. Several companies such as ASUS, Acer, Lenovo, and Samsung are some of the contenders seeking to buy HP’s PC segment.

Here is an official outline of the company’s transition:

-Move HP into higher value, higher margin growth categories
-Sharpen HP’s focus on its strategic priorities of cloud, solutions and software with an emphasis on enterprise, commercial and government markets
-Increase investment in innovation to drive differentiation

In addition, HP is also ceasing production and selling off their Touchpads. HP tried to make a push against iOS and Android devices with webOS, but the company has already admitted defeat. Now, HP is leaving it up to vendors to decide what they would like to do with their current inventory of webOS devices.

HP says it will be up to its sales partners, which include Best Buy Comp., Inc. (BBY) and Staples, Inc. (SPLS). It will give them a case payout for the devices, which they can either return to HP or using the cash, sell the stock at fire sale prices.

Source: Dailytech.com