The Death of the PC
If you look at the entire HP portfolio, the PC business is the most discounted. In a customer account, where HP sells its entire portfolio of imaging and printing products, server, storage and networking, and clients, it’s the clients that get beaten down the most in price negotiations.
The IPG portfolio can recover the deep discount provided on the hardware from supplies of print cartridges and paper; ESSN can make up for hardware discounts from integration services, application migration services, etc.
On the consumer side, the PC is being attacked from both sides—media-tablets and smartphones on one, and soon we will see Internet-ready TVs eating into their market shares in homes. With high-speed broadband, consumers will have access to applications and streaming content from the cloud and they would not require a high-performance PC for the same.
Lets remember that none of the PC OEMs have had any notable success with smart phones and media tablets—Dell with its Streak and Acer with its Iconia have failed to make any considerable impact in this market, and that will be the case in the future as well. HP too has said goodbye to its media tablets and smartphones plans, and has announced the shutdown of its WebOS device division.
For the next five years at least, the media-tablet and the smartphone market will be driven by the handset manufacturers and all the PC OEMs will have to strive really hard to make an impact. They will need to transform themselves in a major way if at all they want to become notable players in this fastest-growing market. However, so far I havent seen any such intent for transformation among PC OEMs.
If you look at the entire HP portfolio, the PC business is the most discounted. In a customer account, where HP sells its entire portfolio of imaging and printing products, server, storage and networking, and clients, it’s the clients that get beaten down the most in price negotiations.
The IPG portfolio can recover the deep discount provided on the hardware from supplies of print cartridges and paper; ESSN can make up for hardware discounts from integration services, application migration services, etc.
On the consumer side, the PC is being attacked from both sides—media-tablets and smartphones on one, and soon we will see Internet-ready TVs eating into their market shares in homes. With high-speed broadband, consumers will have access to applications and streaming content from the cloud and they would not require a high-performance PC for the same.
Lets remember that none of the PC OEMs have had any notable success with smart phones and media tablets—Dell with its Streak and Acer with its Iconia have failed to make any considerable impact in this market, and that will be the case in the future as well. HP too has said goodbye to its media tablets and smartphones plans, and has announced the shutdown of its WebOS device division.
For the next five years at least, the media-tablet and the smartphone market will be driven by the handset manufacturers and all the PC OEMs will have to strive really hard to make an impact. They will need to transform themselves in a major way if at all they want to become notable players in this fastest-growing market. However, so far I havent seen any such intent for transformation among PC OEMs.
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