Thoughts on HP leaving PC business? It's insane!!

[wallyuwl]

Originally Posted By: javacontour
If they are looking at their numbers and see that they are losing money in the PC market, the they would be foolish to remain.



Like I said, if they are making money it is dumb to make this move. If they aren't, then get rid of it. An accurate answer to this question is important, but none of us know for sure.

 

[Papa Bear]

I'm reading this thread on an HP ....

I guess I can put it in the trunk of my Pontiac, right next to the Zenith TV.

 

[TooManyWheels]

Originally Posted By: wallyuwl

Like I said, if they are making money it is dumb to make this move. If they aren't, then get rid of it.


The ONLY time it makes sense to hold on to an asset just becuase it makes money is if you have no other opportunity to invest in other assets that make MORE money, either because you have no other opportunities available, or you have no more money.

Every investor (even Warren Buffet) has more opportunities to just "make money" than he has the money to invest in. So he has to choose between the best ones on the basics of risk, strategic fit, how well he and his managers understand the business, and many other factors. It is not just a matter of "making money". HP obviously figures that when all of these factors are figured together, investing their money somewhere else is more beneficial.

If you can't take my word for it, Google "Opportunity Cost".

 

[jkhawaii]

last thing we need is another IBM! Like IBM they are likely to sell out to some other Chinese company

 

[urchin]

Focusing on maximum profit to the exclusion of all other aspects of a business is insanity.

After all if you put well paid folks out of jobs that buy related goods, after all maybe if less well paid workers are sent packing the world will need even LESS of the professional hardware and services and support they offer. Hmmm, Visious circle.

I see that so many of you here are approaching things based on the MBA model, this model may make a company extremely profitable for a short time, but the long term effects will lead to the destruction of the company.

I stand by the fact that the rise of the MBA was the death of companies being strong, profitable, and healthy for the LONG TERM.

 

[urchin]

One thing I wouldn't mind seeing is the purchase of PSG by Hewlett and Packard families, since they understand that the success of the company was based on hardware. If not them perhaps people within the PSG can buy it.

I believe that at one point during the past decade or two Hewlett & Packard family members did try and regain control of the entire company but failed, I don't remember the details.....