Apple’s operating profits from Mac sales in Q4 2012 were more than all the top 5 PC vendors combined. As PC sales drop, vendors that operate on low margins can no longer make it up in volume.
With the announcement of their 7-inch stock Android tablet at a very competitive price (starting at $169.99) and a reported sell off of Web OS to LG (for use in smart TVs), HP might be going all in on Android. This doesn’t bode well for Microsoft.
Felix Richter of Statista puts Apple’s record profits in context:
In fiscal 2012, Apple made $7 Billion more than Microsoft, Google, eBay, Yahoo, Facebook and Amazon combined. In the same period, it also made more than double virtually the entire PC industry (HP, Lenovo, Dell, Asus, Acer, etc.).
HP announces Spectre One, a Windows 8 all-in-one with a trackpad instead of touch and looks more and more like an iMac.
Redesigning the HP brand - this is bold!
Open source doesn’t guarantee survival, but this is going to be interesting now that manufactures have one more “free” mobile OS to choose from.
They seem just as confused as Netflix!
15 steps completed and they are not done yet! HP is producing one more run of the TouchPads to meet demand - as if their initial batch at the firesale price didn’t ink them enough in the red.
There are a crap ton of $200 tablets, but they all suck! People want $500 tablets for $200, evidenced by last weeks fire-sale of the HP TouchPad. This is not a profitable proposition. HP lost a ton of money last weekend, but that doesn’t matter because they are getting out of the devices business. Customers don’t spend enough in the ecosystem to make subsidizing a device worthwhile - unless you’re Amazon, they are in a very unique situation. People spend hundreds if not thousands of dollars on Amazon each year. They could very well subsidize the device cost with customers making a minimum annual purchase amount.
ex: Amazon Prime members that spent over $500 in the previous year or non Prime members that spent over $750 in the previous year are eligible for subsidize pricing of their tablet.
Ahead of Kindle and all it took was firesale to get it there.
HP is puling an IBM, they are spinning off their PC business and keeping to services… and printers? I guess they are buying into Apple’s post-PC argument and decided they can’t compete, so they won’t.
Unable to meet their projected sales goals, HP has decided kill its webOS devices, that includes their newly released TouchPad and the would be coming soon Pre 3. Instead they’ll be focusing on licensing webOS to other manufactures - good luck with that! Who wants to license a product that has no adoption and has already failed more than once?
Apple makes more money from the sale of one Mac than HP does from selling seven PCs.
Cocoia Blog has a good summery of HP’s webOS event - I really like webOS too but is HP shooting themselves in the foot again. Pre-announcement, almost half a year in advance, reminds me of what killed the Palm Pre.