HP Wakes Up, Realizes Microsoft & Intel Are Competitors Too

HP has struggling ever since it probably made the second stupidest decision ever to fire Mark Hurd as CEO over a minor affair (the fist being to then instate Leo Apotheker as CEO).   At an annual financial meeting, HP’s current CEO Meg Whitman had strong comments in an address to analysts.  You may recall previously Whitman was Ebay’s CEO and ran unsuccessfully for governor of California before taking her current job at HP.

Whitman’s admitted the company was too slow in many cases, missing out on deals with large customers because it couldn’t “deliver the goods.”

“We have got to up our game substantially in how we do things at this company,” said Whitman. “We don’t always look carefully at how we can optimize our end-to-end processes. We’ve got to demand a consistent level of quality.”

Whitman additionally added “often we show up late.”

“HP is just a little late to the game,” said Whitman. “We still have a lot of work to do in our go-to-market operations, our partners and our direct sales teams, at the appropriate speed.”

Wintel-based devices are being aggressively displaced by ARM-based PCs and mobile devices.”

“PCs are declining while tablets are growing.” She said such disruptive forces “are very real” and would continue.

Whitman said the competitive landscape is also changing dramatically.

“Our competitors are expanding across the IT stack,” said Whitman.

“Our business-specific competitors are exhibiting increased pressure in targeted areas. Current long-time partners such as Intel (INTC) and Microsoft (MSFT) are becoming outright competitors.”

But, she added, “I like our assets better than most of our competitors’ assets as we head into this new style of IT.” 

Whitman was optimistic by the end of her talk saying by 2016, she promised, HP will be “an industry-leading company.”

The OEMs have long had success feeding off Microsoft putting out complete garbage, their time has come. Welcome to 2013 Meg.

 Source: Barrons

About the author  ⁄ Suril Amin

Suril is a scientist, journalist and obsessive Microsoft observer. He holds an advanced degree in Biotechnology with minors in Biochemistry, Microbiology, and Molecular Biology. Send him tips on twitter: http://www.twitter.com/surilamin

  • Guest

    Well, her comments about the state of the PC industry should be sobering to those here who argue things are okay and tablets aren’t having a major negative impact. They are after all still a major PC provider, regardless of whether you like them or not. Outside of that, I’m not impressed by her public comments. Not really helpful for them or their existing partners. And of course HP started to compete against MS long before the reverse was true. And sorry, I disagree with you about Hurd. What he did would have resulted in immediate termination for any other employee. You can’t enforce the rules generally if you exempt your CEO from abiding by them.

    • nohone

      Either her or a number of the people in the press and a few of the people who post here are wrong, which makes your “sobering” comment laughable. Whitman said:

      “Wintel-based devices are being aggressively displaced by ARM-based PCs”
      and then later
      “PCs are declining while tablets are growing”

      She thinks that PCs are not tablets. WinRT is a ARM-based PC, and I cannot think of any non-WinRT PC that uses ARM. So is she correct, as you seem to believe, or is the entirety of the tech media who like to tell us that RT (the only PC that runs on ARM) is dead?

      • Guest

        She’s not an idiot, she knows some tablets are full [Windows-based] PCs. She’s saying that’s not what’s winning and – even more concerning – not what she thinks will win in the future. Hopefully she’s wrong about that, but current data makes that irrefutable and HP is clearly moving forward with that assumption in mind, which isn’t especially good for MS. Oh, and by “ARM-based PC” she’s likely referring to Chromebooks, which are apparently catching on volume-wise lately and HP just started promoting.

        • nohone

          Anybody who associates Chromebooks with “catching on” and thinks it is becoming a success immediately discredits their entire argument. WinRT has not been a huge seller, but compared to Chromebook, WinRT has won the market.

          • Guest

            “Chromebooks have in just the past eight months snagged 20 percent to 25 percent of the U.S. market for laptops that cost less than $300, according to NPD Group Inc.”

            http://www.bloomberg.com/news/2013-07-10/google-chromebook-under-300-defies-pc-market-with-growth.html

            Feel free to provide an equivalent link showing Windows RT devices are outselling Chromebooks like you said. You know, to avoid being discredited and all.

          • nohone

            That is quite a stretch to prove that Chrome is “winning.” First off, how many laptops are priced below $300? Very few. How many WinRT devices are priced below $300 (hint – 0). How many WinRT devices are laptops (hint – 0).
            So using those standards, of all the tablet computers with a Haswell processor, 256GB SSD, 8GB of ram, stylus support, running Win8.1, and priced at $1299, and going on sale on October 22nd, Surface Pro 2 sells 100% of them. Therefore Surface Pro 2 are handily beating ChromeBook.

          • Guest

            You seem to be having trouble keeping track of the topic. You denied they’re “catching on”. So I provide a link which proves they are. It doesn’t matter in what price segment initially. That wasn’t any part of the discussion. Now, instead of reciprocating and providing support for your assertion that “Compared to Chrombook, WinRT has won the market”, and I actually let you off easy there by just requesting a link to anyone saying they were outselling them currently, you instead try and parse the meaning of “winning” and come up with some bullshit segmentation of your own as if a substiture for hard data. So I’m going to ask you one last time, can you provide a link that says Windows RT is outselling Chromebooks? If not, then they haven’t “won” far less even started “winning” in comparison.

          • Iain Simpson

            According to early data shared with ZDNet’s Ed Bott, Chrome OS devices represent a paltry 0.023% of the global browsing population. For comparison’s sake, that’s around one fifth of Windows RT’s slice of the pie, which currently sits at 0.12%.

          • Eli_Vance

            Google fanboys like to hang around on Windows Phone/MS sites for whatever reason. I guess they aren’t too secure about their beloved Google.

          • Iain Simpson

            that “in nearly two years on the market, all of those Chromebooks have achieved a smaller percentage of usage than Windows RT earned as of January 2013, after only three months on the market.”

          • Guest

            Keep trying. That’s [pro-MS] writer Ed Bott’s article from April vs my link which is from July. More important it’s Ed’s guestimation of sales data at that time from 3rd party “usage” metrics, whereas mine is NPD, one of the two main independent researchers the entire industry looks to, reporting their best estimate of sell through.

          • Sugadevan

            another google fanboy coming to a site nothing related him and starts ranting about a single line “”Chromebooks have in just the past eight months snagged 20 percent to 25 percent of the U.S. market for laptops that cost less than $300, according to NPD Group Inc.””

            And he trolls everyone to stay on the ‘imaginative topic” ok, if RT is a fail, then chrome OS is an EPIC FAIL!! Come back when chromebooks represent at least 1% of “web traffic” then we can stay on topic. Only idiots will believe chromebooks outsold RTs, and today we have a “guest” idiot here.

          • spazinvader

            That’s [pro-MS[ writer…. I don’t know whether you know or not bu let me tell you something about Ed Bott. He is basically in the tech journalism for 20+ years. He is a pro MS writer. Yes. But definitely not a fanboy who jumps into his articles saying “all hail Microsoft”. Basically, with his stats, if he has found ChromeOS doing lot better than Windows RT, I am positive that he would have mentioned that.

            And speaking of your link, have you really read it fully? I find this quote in that link:

            “Chromebooks still remain a small portion of the total U.S. market for laptops and netbooks. The devices had about 4 percent to 5 percent share in the first quarter, though that was up from 1 percent to 2 percent in 2012, according to Mikako Kitagawa, an analyst at Gartner Inc.”

            So basically 20-25% in less than $300 netbooks translates to 4-5% market of laptops. Combining with the fact that PC shipments are falling every year(Laptop IS a PC) and seeing Chromebooks are not released worldwide and hence we can say US shipments may represent the sales of total Chromebooks, I would say they failed until now.

            And come to think of it. Microsoft never released their sales figures. So no one can say how many Surface RT sold. However, Google boasts the number of activations of Android. From the link you provided,

            “Google declined to comment on Chromebooks’ sales figures.”
            Do you think Google cannot find the sales figure? If it’s growing good, I wonder, why Google is not commenting about the sales to one of the two main independent researcher the entire industry looks to. Being humble in terms of Chromebooks?

          • nohone

            So someone who brings up an off topic subject, he is shown how ridiculous his statement is, and then he starts whining about how the conversation is going off topic. Sounds just like someone who used to post here, but suddenly dropped off at the same time someone posting under the name Guest starts posting. Interesting…
            Let me ask you, one last time, provide me a link that shows Chromebooks are selling more than WinRT devices. The article you linked to provides no information about the sales of WinRT devices, just about how Chrome book has a fraction of sales in a category WinRT is not even in.
            Keep grasping at those straws.

          • Guest

            I realize this has been embarrassing for you. First you decide to try and discredit something I said, only to be provided independent verification that it was indeed fact. And now you’re unable to provide equivalent support for your counter assertion. Worse, you now expect me to disprove your still unproven “fact”. And to top it off you accuse me of whining and being someone else. Grow up.

          • nohone

            You have not proven anything. You provided some information that is not relevant to the topic at hand. You are stating that ChromeBook is selling better than WinRT by giving stats that do not include WinRT devices. Show me in that article where it gives any stats about WinRT.
            Suppose I claim that Ford sells more than Chevy. You read an article stating that among low end sub-compact sedans, Chevy has 25% of all sales. And based upon that single stat, you make the claim that Chevy is selling the most cars. This is what you have done, and it indicates you do not understand the most simple properties of matematics.

          • Guest

            I proved two things:

            1) You were wrong on topic
            2) You were full of shit and couldn’t back you own counter claim.

          • nohone

            No, you didn’t prove anything. You “proved” (using a non-exact method) that ChromeBook has 25% of the market of $300 laptops, and extrapolated that to theorize that ChromeBook is beating WinRT where there is no data that can be compared between the two. You are creating data when there is none, and using this false data to try to prove a point.

          • donzebe

            From Lenovo, fujitsu, sharp, toshiba, Dell, and HP, 2013 holiday products like up you can clearly see that Windows is the winner. These are the leaders in enterprise and consumer pc (personal computers).

        • donzebe

          With Chromebooks, that’s where HP will fail massively. Focusing on windows devices will give them a better chance. Asked Acer, Ansus and Samsung and they will tell you how well chromebooks are doing.

    • Bugbog

      Totally agree. HP have been losing their way for the last decade, buying ten’s of companies only to mismanage their IP and lose the creative talent. As you stated, they were at the forefront of mobile technology, not only with tablets and slate but PDA’s and Smartphones too.

      Unfortunately, at the advent of This current age of smartphone tech, they fumbled the ball, stumbled, and then kicked it down the corridor! When Microsoft announced the switched to WP7, they bought Palm instead, and thoroughly botched it up (and almost botched up their PC business too!). [In]Famously proclaiming that they were going to put scale WebOS to every device in their portfolio, and we all know how that went! But even when they recovered their dignity, slightly, they jumped straight into bed with Android.

      So they have no one to blame but themselves if their “partners” have decided to move on without them. They can’t now start crying about being competed against!

      • donzebe

        Agreed, HP could have join force with Microsoft to improve on wp7 but they decided to go the other way and look what happen to them. HTC is also facing same issue, the leader in windows mobile can not even compete in either directions because they got their focus divided.

  • Yuan Taizong

    I don’t understand why people consider Tablets to be different from P.C.’s ¿wasn’t H.P. one of the first major Tablet O.E.M.’s? this wasn’t a missed chance, they didn’t come in the game too late, they just left too soon, before Wi-Fi was mainstream and easy to find, before the devices could be light, I remember exclicitly that H.P. made a lot of cool Tablets and Slates, I’m really hating ”the Steve Jobs Mentality” that Tablets aren’t somehow P.C.’s, this idiot also states that Macs and Macbooks are ”post-P.C.” devices, crap-O.S. fanboys/girls (8Cough* *cough* Linux *cough* *cough* Apple * cough8 * cough*) should stop writing non-sense and H.P. shouldn’t compete with Microsoft, they could’ve simply offered them a deal to make the surface devices for them, Windows XP tablets were mostly made by H.P. ¿why should this generation be different?

    • WebUser

      As long as they run Windows 8, who cares what they call it. I have seen this again and again, from SQL Server, to email, to the cloud, to netbook, to virtualization. They always lose at the end.

      • donzebe

        I thought HP was going to catch on well with the tablets since they were one of the companies leading in the Tablet-pc era. When Apple came up with a tabltet-pc without a keyboard attached they got so confused and stop believing in their products. Now, Microsoft is trying to show them how they can still produce those same tablet-pc with keyboads, they getting all upset.

  • Guest

    The OEMs have long had success feeding off Microsoft putting out complete garbage, their time has come.

    Or has it been Microsoft feeding off the OEMs? Over the last 20+ years it seem Microsoft been making more revenue and profits off every PC sold then the OEMs.

    I think that is great for Microsoft but it wouldn’t be accurate to say Microsoft did much to discourage the race to the bottom of PC pricing. In fact it was to Microsoft advantage for OEMs to sale 2 $500 computers with Windows then one $1000 computer.

    • Joe_HTH

      “Or has it been Microsoft feeding off the OEMs? Over the last 20+ years it seem Microsoft been making more revenue and profits off every PC sold then the OEMs.”

      That’s their own fault. They are to blame for their low margins, not Microsoft. They engaged in a race to the bottom. They are the ones who have pumped out garbage for the last 10-15 years, and in the process condition consumers to spend cheaply. They are also the ones to blame for loading up their Windows PCs with bloatware and crapware that nobody wanted, to make up for their low margins, and in the process hampered the out of the box performance of Windows PCs. So consumers had to spend half an hour getting rid of that crap.

      These are also the OEMs who’ve been flooding the market with cheap Android tablets and Chromebooks, even before Microsoft announced the Surface. So the OEMs can go to hell. They don’t give a damn about Microsoft, so they are the last ones to cry about Microsoft stabbing them in the back.

      If they think their margins on PCs are low, I’d love to see them try to survive off of $200 Android tablets and $300 Chromebooks. That’s compounded by the fact that Chromebooks don’t sell and neither do most Android tablets.

      • deathdealer351

        Could not have said it better myself

  • FXi2

    It’s pretty pathetic when HP, who produces PC’s by the boatload (model wise) feels threatened by a company that produces TWO. So is HP saying that their thousands of engineers, massive marketing and huge presence feels threatened by 2 tablets? Or are they just now realizing that they’ve been producing boatloads of crud PC’s and now 2 high quality ones change their markets? Not really. Like the economy, whenever a company has a chance to blame some outside force for their woes, their inadequacies, or their financial goal failings, they will always use it. It’s like blaming traffic for being late every day. You get used to it. You expect it. And it’s pretty much meaningless press release dribble.

  • jaylyric

    So her strategy will be to make more Android and Chrome based products.. Google won’t be a competitor right? I think the best strategy would be to not let any mediocre products ship out of your factory. Your traditional partners can still work out for you. You just not only have to show up to the game early,but you have to actually play.. And play to win.
    .

  • grs_dev

    It’s interesting to see that she doesn’t consider Google a competitor nor an adversary.

  • Rikikrik

    Microsoft still needs it’s partners, for now. HP should realize this and capitalize on this. OEM’s more and more have the opportunity not only to sell Windows devices, but also to deploy, develop apps and to manage the systems, getting deeper into the business. But there is another development or danger of Microsoft really going it alone, and this is hypothetical, but still possible. If Microsoft succeeds to unify it’s operating systems (WP, W8 pro and W RT) apps, software and services in the Cloud, given the huge market they dominate, they might shut out all OEM’s and partners of their services and software, becomming the sole provider of Windows software and services. Microsoft may become the only provider of Windows products and services in the world. This is a frightening scene for partners and OEM’s. But Microsoft is most of all a developer of software platforms, on which other companies with their expertise can develop other software and applications. While this will remain the same for Microsoft partners, OEM’s will lose everything.

    • Cruncher

      You do know, that Windows 8 an Windows RT are completely “unified”? They are one and the same OS after all.

  • cybersaurusrex

    More like… Microsoft wakes up, realizes that HP & Intel are competitors.
    HP was flirting with other OSes before Microsoft was making tablets… like, way before. And so were the other OEMs.

  • Mike366

    Both HP and Dell are actually killed by Lenovo

  • David Farris

    It is a shame really. I used the elite 900 for a few months and was really impressed. It actually beat the Surface Prop hands down with its docking cover. Instead of whining start selling. You have good products.