welcome back if last week wasn’t
challenging enough for socks the friday
HP got decimated after CEO leo apotheker
came out and basically said that he was
going to unload the personal computer
services and systems unit and move
headfirst into services and software now
this was a bit of a shock to the market
because HP is the number one PC maker
okay they basically our a 40 billion
dollar revenue business now it does
account for thirty one percent of
revenues but only six percent of profit
according to a great article on Monday
notes by Jean do we get see which you
should all check out the numbers
actually makes sense if you just look at
it at on terms of a business move in
terms of is this move you saw IBM did
this but I mean IBM was a different era
right now HP is number one in in the PC
market right and they’re growing albeit
it’s flat really more than anything else
their tablets aren’t necessarily growing
which is why they unloaded the webos
system and they just killed the touchpad
one hundred dollars for tablet was
pretty good deal I couldn’t find one
this weekend but my question to you is
if you are a consumer do you care about
this like are you still going to buy pcs
from HP even if somebody else going to
own them I mean they’ll be spun off
either into you know a private equity
firm or they will be acquired by an
Oracle just you know well I think the
average consumer probably isn’t even
aware that this is happening over the
next week or so it will trickle into the
mainstream media and people here
mentions some consumers would be like
great they’re liquidating that stuff I’m
going to go pick up cheap laptops other
consumers would be like well I’ve had
problems with them before now that
there’s no support I’ll totally stay
away from it I think where it’s probably
going to bite them in the ass the
hardest is going to be in terms of uh I
guess their brand awareness the fact of
the matter is most of us know about
hewlett-packard because of the the
consumer products they sell as they get
out of that they’ll cease to be a
household name and it’s going to be it’s
going to kind of hit that that trust
element when it comes down to you know a
decision maker within an organization
choosing between enterprise level
software vendors and HPS on the list
they’re going to be like well as far as
i can tell i haven’t heard HP’s name in
a long time I’m crossing them off and
moving on
next one yeah the irony is that like to
actually be successful in software and
services like if anything the the pc
business i think would help them the
other irony here is that when they
announced the touchpad fire cell they
power ecommerce sites but their
ecommerce sites went down this could
have been a great opportunity for them
to say look we had massive influx of
consumers but we you know held down the
fort i think the thing that is shocking
really is not the decision right i mean
the decision could you could argue it
makes sense it’s just the fact that you
know over the weekend i got an email
from basically stephen DeFranco the
senior vp and GM of the personal systems
group who came out and said no we’re
committed to it more than ever i quote i
would like to reinforce that todd todd
bradley the CEO that runs the unit along
with hp’s leadership team we are
committed to this pc business in the
product that sells I mean did you guys
talk what happened was basically the CEO
invited the CEO to of this unit so the
CEO of HP invited the CEO of the
personal computer unit to his home for
dinner the night before was announced
it’s like could I finish my piece of
bread before you make me choke on it I
just find that’s what didn’t look too
logical it’s like me coming down and
torching down watchmojo and then saying
oh maybe that was a rush hasty move like
think it through discuss it before
saying oh man we there’s no point of
point of no return here well even what
you just read it it sounds to me a lot
like something that would have been spun
out of the communications or public
relations department it sounded very
templated and scripted and of course
you’re going to tell people you’re
committed to continue to service them
you’re not going to say you know what
screw you we’re out of it you’re on your
own you just can’t say that so I don’t I
don’t know if he wrote that himself it
sounds a little fluffy it may or may not
be true and I think it sounds
sufficiently templated it’s not even
worth discussing is Stephen DeFranco is
Twitter SD fat HS sorry SDF at HP I mean
it’s worth following because my guess is
that this story is going to change
pretty quickly okay let’s now move on I
don’t really want to make this into
software versus hardware and all that I
won’t talk us more about just generally
speaking you’ve heard the post-pc world
the poles pc world I mean Apple is
kicking butt I mean they 10 years ago
Apple launched the ipod okay they were
down on one knee back against the wall
and the reason they did that is because
they wanted to start you know building
up their mobile technology they
they saw that music was away in but they
also saw that the consumer market was a
great market like the economy sixty-six
percent of the economic gdp comes from
consumers you know so I’m just saying
enterprise is great but it’s a much the
profit margins are much higher what
doesn’t make sense is HP wants to
basically shrink its business I mean
again the depending on how you read the
financial statement the revenues and the
personal and the pc consumer market in
PHP are either flat or going down it
depends how you want to which accounting
you want to use but but ten years ago
compact doubled our HP double down on
the pc market by merging with compact so
i get it but to me the post post pc
world or the mobile world is actually
not just your iphone or your blackberry
or your Android or even a tablet to me
it’s just reaching consumers on the go
guess where you reach consumers on the
go big massive digital screens and malls
or you know mid sized screens and calves
ease no far off from those from those
screens pretty much showing us content
based on an RFID chip in our tablet or
in our phone anywhere yeah so it’s still
kind of mobility the whole post-pc thing
it kind of doesn’t make sense because pc
just really stands for personal computer
right now my personal computer happens
to send and receive phone calls is
powered by an open-source platform and i
still have it i think HP kind of would
have made sense for them to drop at
least their tablet component I had never
even heard of a hewlett-packard tablet
until all of a sudden they were only a
hundred bucks I’ve heard of a playbook
I’ve heard of the ipad i heard of the
samsung but yeah HP is kind of like they
did well in the desktop last six weeks
they gave the touchpad I mean that’s
crazy they bought palm whose OS they use
just a year ago I think this is actually
a lot more case study of culture it’s a
lot more case study of turf battles that
is the bigger story here it’s really a
lot less about computers although again
just to play devil’s advocate HP we’re
going to close on this and then switch
to lightning here so I just want to
touch on this HP’s revenues were 120
billion but their market cap even before
the meltdown on Friday was about 60
billion so they were trading at fifty
cents price sales ratio in other words
you’re you got this big revenue base but
the markets not really rewarding you so
I’m just saying this could have been a
great strategic shift if properly
cuted communicated it just wasn’t we’re
going to take a short break we’re going
to come back for lightning round we’re
going to talk about Disney’s latest tech
change move we’re going to talk about
Ashton Kutcher we’re going to talk about
lots of other things including whether
or not AOL should be taken private
challenging enough for socks the friday
HP got decimated after CEO leo apotheker
came out and basically said that he was
going to unload the personal computer
services and systems unit and move
headfirst into services and software now
this was a bit of a shock to the market
because HP is the number one PC maker
okay they basically our a 40 billion
dollar revenue business now it does
account for thirty one percent of
revenues but only six percent of profit
according to a great article on Monday
notes by Jean do we get see which you
should all check out the numbers
actually makes sense if you just look at
it at on terms of a business move in
terms of is this move you saw IBM did
this but I mean IBM was a different era
right now HP is number one in in the PC
market right and they’re growing albeit
it’s flat really more than anything else
their tablets aren’t necessarily growing
which is why they unloaded the webos
system and they just killed the touchpad
one hundred dollars for tablet was
pretty good deal I couldn’t find one
this weekend but my question to you is
if you are a consumer do you care about
this like are you still going to buy pcs
from HP even if somebody else going to
own them I mean they’ll be spun off
either into you know a private equity
firm or they will be acquired by an
Oracle just you know well I think the
average consumer probably isn’t even
aware that this is happening over the
next week or so it will trickle into the
mainstream media and people here
mentions some consumers would be like
great they’re liquidating that stuff I’m
going to go pick up cheap laptops other
consumers would be like well I’ve had
problems with them before now that
there’s no support I’ll totally stay
away from it I think where it’s probably
going to bite them in the ass the
hardest is going to be in terms of uh I
guess their brand awareness the fact of
the matter is most of us know about
hewlett-packard because of the the
consumer products they sell as they get
out of that they’ll cease to be a
household name and it’s going to be it’s
going to kind of hit that that trust
element when it comes down to you know a
decision maker within an organization
choosing between enterprise level
software vendors and HPS on the list
they’re going to be like well as far as
i can tell i haven’t heard HP’s name in
a long time I’m crossing them off and
moving on
next one yeah the irony is that like to
actually be successful in software and
services like if anything the the pc
business i think would help them the
other irony here is that when they
announced the touchpad fire cell they
power ecommerce sites but their
ecommerce sites went down this could
have been a great opportunity for them
to say look we had massive influx of
consumers but we you know held down the
fort i think the thing that is shocking
really is not the decision right i mean
the decision could you could argue it
makes sense it’s just the fact that you
know over the weekend i got an email
from basically stephen DeFranco the
senior vp and GM of the personal systems
group who came out and said no we’re
committed to it more than ever i quote i
would like to reinforce that todd todd
bradley the CEO that runs the unit along
with hp’s leadership team we are
committed to this pc business in the
product that sells I mean did you guys
talk what happened was basically the CEO
invited the CEO to of this unit so the
CEO of HP invited the CEO of the
personal computer unit to his home for
dinner the night before was announced
it’s like could I finish my piece of
bread before you make me choke on it I
just find that’s what didn’t look too
logical it’s like me coming down and
torching down watchmojo and then saying
oh maybe that was a rush hasty move like
think it through discuss it before
saying oh man we there’s no point of
point of no return here well even what
you just read it it sounds to me a lot
like something that would have been spun
out of the communications or public
relations department it sounded very
templated and scripted and of course
you’re going to tell people you’re
committed to continue to service them
you’re not going to say you know what
screw you we’re out of it you’re on your
own you just can’t say that so I don’t I
don’t know if he wrote that himself it
sounds a little fluffy it may or may not
be true and I think it sounds
sufficiently templated it’s not even
worth discussing is Stephen DeFranco is
Twitter SD fat HS sorry SDF at HP I mean
it’s worth following because my guess is
that this story is going to change
pretty quickly okay let’s now move on I
don’t really want to make this into
software versus hardware and all that I
won’t talk us more about just generally
speaking you’ve heard the post-pc world
the poles pc world I mean Apple is
kicking butt I mean they 10 years ago
Apple launched the ipod okay they were
down on one knee back against the wall
and the reason they did that is because
they wanted to start you know building
up their mobile technology they
they saw that music was away in but they
also saw that the consumer market was a
great market like the economy sixty-six
percent of the economic gdp comes from
consumers you know so I’m just saying
enterprise is great but it’s a much the
profit margins are much higher what
doesn’t make sense is HP wants to
basically shrink its business I mean
again the depending on how you read the
financial statement the revenues and the
personal and the pc consumer market in
PHP are either flat or going down it
depends how you want to which accounting
you want to use but but ten years ago
compact doubled our HP double down on
the pc market by merging with compact so
i get it but to me the post post pc
world or the mobile world is actually
not just your iphone or your blackberry
or your Android or even a tablet to me
it’s just reaching consumers on the go
guess where you reach consumers on the
go big massive digital screens and malls
or you know mid sized screens and calves
ease no far off from those from those
screens pretty much showing us content
based on an RFID chip in our tablet or
in our phone anywhere yeah so it’s still
kind of mobility the whole post-pc thing
it kind of doesn’t make sense because pc
just really stands for personal computer
right now my personal computer happens
to send and receive phone calls is
powered by an open-source platform and i
still have it i think HP kind of would
have made sense for them to drop at
least their tablet component I had never
even heard of a hewlett-packard tablet
until all of a sudden they were only a
hundred bucks I’ve heard of a playbook
I’ve heard of the ipad i heard of the
samsung but yeah HP is kind of like they
did well in the desktop last six weeks
they gave the touchpad I mean that’s
crazy they bought palm whose OS they use
just a year ago I think this is actually
a lot more case study of culture it’s a
lot more case study of turf battles that
is the bigger story here it’s really a
lot less about computers although again
just to play devil’s advocate HP we’re
going to close on this and then switch
to lightning here so I just want to
touch on this HP’s revenues were 120
billion but their market cap even before
the meltdown on Friday was about 60
billion so they were trading at fifty
cents price sales ratio in other words
you’re you got this big revenue base but
the markets not really rewarding you so
I’m just saying this could have been a
great strategic shift if properly
cuted communicated it just wasn’t we’re
going to take a short break we’re going
to come back for lightning round we’re
going to talk about Disney’s latest tech
change move we’re going to talk about
Ashton Kutcher we’re going to talk about
lots of other things including whether
or not AOL should be taken private
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