HP cites tough year ahead in 2013, shares sink to 10-year low

HP cites tough year ahead in 2013, shares sink to 10-year low
Expecting revenue to fall in every business unit except software, CEO Meg Whitman laid out a difficult year ahead and said that the company would not see a visible turn-around until fiscal year 2014.

That did not help foster investor confidence in the company as shares slid to levels not seen since 2002. Whitman is the computer giant’s third CEO in three years after the ouster of Leo Apotheker. Apotheker was only at his post for 11 months, taking over for Mark Hurd, who left the company over what was to be a sexual harassment non-event.  It is executive turnover that is hindering the company the most according to Whitman at an investor’s conference in San Francisco.  Based on the events of the past couple of years, it is easy to agree with that assessment.



HP has seen its market cap evaporate in less than two years by more than 60%, in addition to a recent write down of $10-billion over the company’s acquisition of EDS, HP spent over $1-billion buying Palm, only to abandon it, then give up its investment as it turned webOS into an open source platform

In addition to the usual employee layoff plan, the company plans to recover in the enterprise space, essentially follow in IBM’s footsteps, which is also the area where it is losing the most money right now. Whitman confirmed that HP will not be offering a smartphone in 2013, though she is on the record that the company will begin competing in that space.  We also know the company has been working on something that dabbles with the Android platform

Without a doubt, the past few years have been tough on HP.  Without a doubt, the next few are sure to be tougher still.

source: Reuters

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8 Comments

1. PhenomFaz

Posts: 1236; Member since: Sep 26, 2012

HP has got to increase the quality of its notebooks...the chassis and heat issues are completely unacceptable even thought they offer great configuration for the price. Focus on mobile with Android for now at least...and focus on enterprsie services...should be enought to pull HP out of deep waters

2. eisenbricher

Posts: 973; Member since: Aug 09, 2012

Not with all the models though, my dv6 notebook which is 1yr old now, has been working decently fine, even though I've put it under lots of torture like kept it working for days, etc. Even the original battery still easily last for 3.5hrs. Almost like new.

3. PhenomFaz

Posts: 1236; Member since: Sep 26, 2012

I own a dv6 too...its with an AMD processor. I thought new gen cpus dont heat but i was wrong...and the cooling system on my notebook is sub-par and the vents are small too. Hp has got to take a cue from dell xps or sager for that matter on build quality

4. eisenbricher

Posts: 973; Member since: Aug 09, 2012

Oh.. mine is a 2nd gen i3. Never had heat prolems even while transcoding vids. But my friends' HP laptops face such problems, having older CPUs. I guess I am lucky!

5. PhenomFaz

Posts: 1236; Member since: Sep 26, 2012

I have a lenovo with an i3...cool as a cucumber and believe it or not being a business laptop I can do moderate gaming (AC Revelations on medium) and it still doesn't heat up. HP has lost pc market share considerably...they still sell well but I guess its not well enough

6. phil2n

Posts: 519; Member since: Apr 30, 2012

i own dv4 i5 and it still doing very good.. hope HP can recover

7. eisenbricher

Posts: 973; Member since: Aug 09, 2012

Well.. best luck HP.. I've always been using HP products for computing purposes.. since 2000. Owned 2 desktops and a laptop since then. All were rock solid.

8. busa03

Posts: 11; Member since: Jan 12, 2012

What hp needs to do is sell the pc division. Just like IBM did.

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