Johannesburg, 26 Mar 2013
Despite strong competition from Chinese manufacturer Lenovo, HP remains the most popular vendor of PCs, laptops and workstations in the world. According to the latest quarterly report by analysts at IDC, the firm has held on to the global top spot with a market share of 15.7% against its rival's 15.5%.
Lenovo might be nipping at HP's heels, but with Microsoft's Windows 8 now on the playing field, the US company is in a strong position to open the gap again. With a massive internal restructuring under way and new-found confidence to show to the world, it's a firm that should continue to inspire trust.
It's been nearly two years since CEO Meg Whitman took over at HP, replacing Leo Apotheker at the helm of a company that seemed to have lost its way. During 2011, HP's behaviour in the face of falling profits and market share seemed erratic, to say the least. After spending $1.2 billion purchasing Palm for its smartphone and tablet operating software, it canned the entire division and then announced - briefly - that it was planning to sell off its PC business, too.
Whitman has instigated huge restructuring, which will touch on every aspect of the company's business, and is designed to bring stability and growth to the company over the next few years. During an analysts' briefing in 2012, Whitman criticised her predecessor's regime for lack of direction and attention to detail.
"The single biggest challenge facing HP," Whitman said, "has been the multiple changes in HP leadership, which caused inconsistent strategic choices and some significant execution miscues."
Whitman cited HP's world-renowned R&D department as one that had been chronically underused when it came to bringing products to market. HP doesn't have a problem with innovation, she said, it has a problem doing anything with all the valuable IP it's built up. She also cited the problem of over 2 000 different LaserJet printer models available under the HP brand as symptomatic of the internal drift.
While Whitman's honesty may be upsetting for some investors expecting a quick return, her determination to sort the company out makes it a promising long-term bet. HP is still number one, after all, and it's got a clear path to restructuring and simplifying its internal lines to make it more competitive in the future. This is a company that's come out fighting, and has both the talent and the development resources to succeed.
What's more, the firm has a strong line-up that's ready to capitalise on Microsoft's big Windows 8 push, and it's long been a leader in touch-sensitive technology for the desktop.
"HP's real strength right now is right where it's always been," says Sophia Evans, business unit manager for HP at Tarsus Technologies. "Its professional line-up of PCs, laptops and workstations are the best in the world, and supported by class-leading management tools and warranties."
Evans singles out HP's new EliteBook Folio 9470m Ultrabook as an example of how the company is perfectly positioned. With its 14-inch display, it has all the advantages of lightweight, corporate-focused Ultrabooks that are currently proving popular, yet brings sturdy business styling that's tough enough to take the knocks and bumps of the regular traveller. It features the latest third-generation Intel Core processors and has an LED-backlit HD anti-glare display with a battery life of up to eight hours or more, yet it weighs just 1.63kg and is just 18.9mm thin. It also comes with options for 3G connectivity.
"With products like the EliteBook Folio 9470m Ultrabook here and touch-capable models on their way," says Evans, "HP's still the best bet for customers who need computers that are both cutting-edge and reliable for their staff."
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