HP rains on Dell's private parade, should probably mind its own business

Well that didn’t take long. HP is come out and slung the corporate mud at Dell and has said that they will have significant struggles based on their debt load by going private.

In short, HP believes that by going private, Dell will be unable to innovate because of the debt it has and will leave existing customers at the curb. Strong words from HP, who in the same breath, offered up that it will happily accept any disgruntled Dell customers.

HP’s full statement is posted below.

"Dell has a very tough road ahead. The company faces an extended period of uncertainty and transition that will not be good for its customers. And with a significant debt load, Dell's ability to invest in new products and services will be extremely limited. Leveraged buyouts tend to leave existing customers and innovation at the curb. We believe Dell's customers will now be eager to explore alternatives, and HP plans to take full advantage of that opportunity."

While the future of Dell will change significantly by becoming a private corporation, we should point out that HP is not a strong horse either and that they have made a few mistakes in the past as well.

Instead of flinging mud around the market, maybe, just maybe, HP should start thinking about all of those acquisitions it has made that have failed miserably and realize that they are not a saint either.

Source: MarketWatch

Report a problem with article
Previous Story

Bitcasa out of beta; limited offer of $69 a year for 'infinite' cloud storage

Next Story

Adduplex: Windows Phone 8 devices now outnumber WP 7 in the US

18 Comments

Commenting is disabled on this article.

I have owned one HP machine in life. The Envy 17 3D was awesome while I had it. The DV series was an has been a complete train wreack as far as quality. The latest Envy Touchsmart also looks very good considering. Their desktops have morph'd into a pretty looking AIO. But overall...I would always take a Dell over an HP.

I think MS will get to have some say, no matter what they may claim publicly. MS isnt investing any money if they arent getting anything. Look at the APple deal of 97.

You see the problem here is that HP is worried their dominance in the Azure data center is about to be challenged by Microsoft's $2Billion investment in the privatization effort.

Poor HP.

hehehe perhaps HP should look at their own situation before commenting on others, a sleeping giant (a comatose zombie) more like! or infact concentrate on what they used to be able to make superbly PRINTERS, even those new HP MFPS arnt a patch on the old Laserjets.

Stopped listening or supporting HP back in 2005, nothing they've churned out yet has made me regret that since then <yawn>

Corporations use Dell due to 3 things, cost, decent(ish) build quality....& a support network of engineers who are sent in to repair/fix warranty work next day, HP, IBM take note that's what corporations want! Not arguing with your "corporate level" support monkeys who claim to know more than qualified engineers who actually use and keep your boxes of tin alive.

We dont have time or want to argue with the support monkey at the other end claiming "have you tried rebooting it", WTF do you reckon pre-written script boy!

That's where Dell wins hands down.

Edited by Mando, Feb 5 2013, 10:53pm :

They certainly do, like with their new awesome laptop keyboards where there's a Calculator button in Ctrl's place, a Print button in Shift's place, a Web Browser button in Caps Lock's place, an Explorer button in Tab's place's and a Mail button in backslash's place. IT'S SO... DAMN... BRILLIANT!!!!!

Dell isnt going anywhere and my company has no plans to switch either. Dell is just restructuring their organization like a lot of companies have done. HP is just trying to scare consumers and customers.

Trash talking seems to be the new marketing these days.

I think the exact opposite will be true. A company that doesn't have to cater to stock holders first and customers second will be more innovative and can take higher risks with new products.

While they're right to a certain extent, I think Dell will be fine. HP on the on the other hand needs to step their game up instead of throwing mud.

I can't tell if HP thinks this is a good move to win customers or if they're just worried that Microsoft is contributing a good chunk of cash into making Dell private.

Less than 10% is a good chunk? I don't think it is.
The overall dollar amount is high, but the their percent of overall investment is low.

In the 90's they owned more than that of Apple.

In the grand scheme of things, no. $2 Billion is still a pretty big amount to give any company that won't let you have any say it what goes on.

Sraf said,
There's a "Report an problem with the article" link under the author's name. Learn it, love it, use it

Wait, where did it go? I'm not seeing the "report a problem" link anymore O.O

edit: oh, reading your comment again they must have moved it into the dropdown under the authors name, was expecting it to be under the article