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HP's announced purge confuses industry insiders

HP's recent announcement that it is to cease working on all of its hardware facets - such as its PCs and touchpads - has confused many within the IT industry.

 


As one of the world's largest manufacturers of such hardware, it seemed a strange turn of events. However one technology expert, writer Charles Arthur, thinks he understands HP's intentions.

Opting to put their eggs in other baskets

He called the move "wise" on Guardian.co.uk, adding that the global brand just wasn't making enough money out of this avenue. Arthur believes the rising popularity of tablet devices definitely added to the decision, as HP's offering - the TouchPad - had experienced poor sales.
 

"Sales of the TouchPad are not meeting our expectations," confirmed HP's Leo Apotheker. In fact, sales have been so slow that in recent weeks, HP discounted its tablet offering; dropping from the £400 mark to under £100.

Demand for the discounted devices was so high that many UK retailers sold out within minutes; leading HP to backtrack on its decision and actually manufacture one last batch, Silicon.com revealed. The UK will not benefit from this though; nor will Europe, as they will only go on sale in North America.

"Yes, we will still need PCs in the future. But for the Western world, it has turned into what analysts would call an 'ex-growth' business."

Charles Arthur,
Technology expert

 


End of the production line

Now that HP has (almost) stopped producing its famed hardware, what will the impact be on consumers? Not all that notable, if reports are to be believed. With the PC seeming to drop in popularity and tablets overtaking, consumers may not find themselves greatly affected by HP's demise.

Arthur concluded: "Yes, we will still need PCs in the future. But for the Western world, it has turned into what analysts would call an 'ex-growth' business. It's about replacement - and barely profitable for the makers."
 

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