Michael Dell suggests new-old name for HP's PC business

HP's decision to dump its webOS business, as first announced on Thursday, was a surprise but also understandable considering that the company announced during its conference call with investors it has been losing tons of money on the division since buying its parent company Palm back in April 2010. But HP truly shocked the industry by announcing it was thinking about spinning off its PC business. HP is still the biggest seller of PCs on the planet.

The announcement has caused Michael Dell, the founder and CEO of HP's biggest rival Dell, to make a couple of ... interesting ... comments via his Twitter page. One post about the HP PC move was, " ... They are calling it a separation but it feels like a divorce." Dell made an even more snarky comment earlier when he tweeted, "If HP spins off their PC business....maybe they will call it Compaq?" That's a reference to HP's purchase of the once massive PC maker Compaq back in 2001.

Ironically, Dell might be one of the companies that would be interested in sweeping in and purchasing the HP PC business. Other PC makers such as Acer (which purchased Gateway a few years ago) and Asus might also make a play for HP's PC division. Or HP could simply spin off the company on its own while retaining a small stake in the new company.

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HP build quality is terrible for the most part. Bought a dv6 3033cl last year at Costco, and now the speakers have blown out and the AC adapter needed to be replaced. Got the AC for free, but am so uncertain with handing HP my PC now that the speakers have blown just as school is about to start. If they could have real retail precense or even a kiosk or help center, it'd help so much.

Plus though one Indian guy was nice to give me a free AC adapter, another got upset when I refused to get a 'discounted' $67 320GB hard drive, to supposedly back-up my data so I could do a system recovery since I didn't have my own external drive yet.

So Guys What happens to the Hp Laptop business and the Laptop warranties , Just recently purchased Hp Dv6t with 3 years extended warranty so was curious!!

I agree. But consider this scenario: MS buys HP PC, then still ditches the PC line in favor of their slates and phones. Why? They would get their hands on the uber-portable market, not have to deal with infinite PC hardware support issues, and at the same time appease the Dells, Acers, et-al, by letting them pick up that void. Therefore, via Windows 8, they will have their presence still in the PC world and at the same time enhance their universal presence with a (anticipated) stronghold on the tablet and phone market.

MS has never wanted to venture into the hardware world, but felt they had to with mice, keyboards and desktop cameras in order to accommodate their OS. Doing the same now with just phones and tablets may be the right time. But before all this news I'd say there was a better chance of them making a play for complete ownership of Nokia, or even RIM. But we'll see what the next few months bring. Anyone know how much cash on hand MS has?

Microsoft should buy this. This would be such a great thing for them. AND the Stores. Time will tell... I was shocked by this. Not the stupid WebOS but the pc thing. Stunned actually.

jimmyfal said,
Microsoft should buy this. This would be such a great thing for them. AND the Stores. Time will tell... I was shocked by this. Not the stupid WebOS but the pc thing. Stunned actually.

I hope MS doesn't even consider it. They already have a few money pits (Bing, for example) that suck a lot of their profits out of them.

Tuishimi said,

I hope MS doesn't even consider it. They already have a few money pits (Bing, for example) that suck a lot of their profits out of them.

warwagon said,
Though I guess would be a step forward in the defeat of PC crapware.

Would be nice if someone stepped in and made HP PCs good, selling them without all the garbage on them. I'm sure their enterprise stuff doesn't have all that on it. If it does, I'd be very upset.

Enron said,

Would be nice if someone stepped in and made HP PCs good, selling them without all the garbage on them. I'm sure their enterprise stuff doesn't have all that on it. If it does, I'd be very upset.

HP has actually done well with their current systems and has not put tons of bloatware on them as they have in the past. I have actually been quite surprised but I agree that many of the manufacturers are still heavily weighing things down with unwanted and unnecessary crap.

Be very careful, DELL. Do you want to drag down your reputation (and profits) with the unforeseen problems you inherit with the Compaq reputation and HP's reputation of not supporting what they sell in the consumer marketplace?

TsarNikky said,
Be very careful, DELL. Do you want to drag down your reputation (and profits) with the unforeseen problems you inherit with the Compaq reputation and HP's reputation of not supporting what they sell in the consumer marketplace?

Sadly Dells build quality and products are not a patch on what they used to be, workwise Ive binned 4 XPS M1330s in a week for faulty tft panels after 3 years (just after warr ran out) the rpelacements were vostro 3350s after 4 days my new vostro packed in (we buy 100-200 laptop/desktops a year) Back to Lenevo for us, built like tanks and are retired when they are too slow, not because they fail or break.

good riddance. HP with their crappy software,build quality and engineering. I've bought 3 HP laptops in the last 4 years. The first one, the keys keep breaking off,even with replacements. The 2nd one the fan is so loud and the laptop is burning hot. The 3rd one has so many other problems I can't even list them. Say what you want about Acer,but their computers are great. I've bought many HP and Acer desktops as well,and the Acer are always better. If HP is gone, someone else will take their spot. They can go back and sell their servers and printer toners.

No wonder they are not making a profit. They are not the biggest PC manufacturer for nothing. Crank out cheap computers with crappy build quality and you too can be the largest PC manufacturer,but don't make any money.

Lets not forget them not supporting PC peripherals--printers, scanners, etc. One does not repeatedly pay good money for an HP product (or what used to be a good name), and then end up with an "orphan" because no drivers are provided when Microsoft releases a new OS.

TsarNikky said,
Lets not forget them not supporting PC peripherals--printers, scanners, etc. One does not repeatedly pay good money for an HP product (or what used to be a good name), and then end up with an "orphan" because no drivers are provided when Microsoft releases a new OS.
That is not an HP specific issue. Most manufacturers orphan printers when new OSes are released although some manufacturers will update drivers for more popular models. Canon is the only printer manufacturer that I know of that supports most of their older product lineup under Vista and 7.

They must really be doing something wrong if their most popular division is not turning a profit. A price increase may not fare too well with consumers, but selling less and making more money would still be better for them.

I suppose their financial woes explain why I've been seeing deteriorating quality from HP over the years. After all the problems friends, family, and myself have had with their laptops, I can no longer recommend them.

Don't quote me on this, but I thought I heard that PC manufactures make VERY little Profit per computer. Like $50? Then if you call in for support anything they made off you is gone.

warwagon said,
Don't quote me on this, but I thought I heard that PC manufactures make VERY little Profit per computer. Like $50? Then if you call in for support anything they made off you is gone.

Not really true if you look at it. Mainly with desktops tho, What you can build for 3,000 would cost you 6,000 if you bought it from Dell. Ofcourse gets special bulk discounts which could cut their build cost down to 2,000.

Warboy said,

Not really true if you look at it. Mainly with desktops tho, What you can build for 3,000 would cost you 6,000 if you bought it from Dell. Ofcourse gets special bulk discounts which could cut their build cost down to 2,000.

You're talking premium systems of which very few are sold. The average person buys a $300-600 which has margins below 5%, then when you factor in shotty wormanship and countless hours on tech support to India (no harm or sarcasm intended) that drops significantly.

rafter109 said,

You're talking premium systems of which very few are sold. The average person buys a $300-600 which has margins below 5%, then when you factor in shotty wormanship and countless hours on tech support to India (no harm or sarcasm intended) that drops significantly.

Exactly. I fooled myself into buying an HP dv6-3033cl last year at Costco, because the specs looked pretty good for a mid-range computer. Less than a year later, I needed a new AC adapter which HP shipped and gave for free. But the speakers have blown, and I could send it in under warranty, but it might be a waste of time if they thought it was caused by a drop many months ago before the speakers blew.

Point is, HP's build quality is lousy and I'm highly unlikely to buy from them in the near future again.

rafter109 said,

You're talking premium systems of which very few are sold. The average person buys a $300-600 which has margins below 5%, then when you factor in shotty wormanship and countless hours on tech support to India (no harm or sarcasm intended) that drops significantly.

Exactly. I fooled myself into buying an HP dv6-3033cl last year at Costco, because the specs looked pretty good for a mid-range computer. Less than a year later, I needed a new AC adapter which HP shipped and gave for free. But the speakers have blown, and I could send it in under warranty, but it might be a waste of time if they thought it was caused by a drop many months ago before the speakers blew.

Point is, HP's build quality is lousy and I'm highly unlikely to buy from them in the near future again.

bguy_1986 said,
DELL SUCKS!!!!! I don't know what PCs my company would buy if Dell buys HP...

the same PCs they'll buy when HP closes their PC devision..... at a guess... ipads.

sagum said,

the same PCs they'll buy when HP closes their PC devision..... at a guess... ipads.


Ipad is not a PC ...... can you program using Visual studio in ipad???? How about a complex modelling in CAD???? that's what the mac lines are for....

still1 said,

Ipad is not a PC ...... can you program using Visual studio in ipad???? How about a complex modelling in CAD???? that's what the mac lines are for....

Sarcasm - not what it used to be

I would be soooo mad/sad/confused if HP does that.
How can they not be making money ? everyone has a HP. I'm on my third straight HP and I don't see myself buying anything other than the newer version to my Envy 14 when I'm ready to upgrade !

Kwanza said,
I would be soooo mad/sad/confused if HP does that.
How can they not be making money ? everyone has a HP. I'm on my third straight HP and I don't see myself buying anything other than the newer version to my Envy 14 when I'm ready to upgrade !

Their concern was that

Kwanza said,
I would be soooo mad/sad/confused if HP does that.
How can they not be making money ? everyone has a HP. I'm on my third straight HP and I don't see myself buying anything other than the newer version to my Envy 14 when I'm ready to upgrade !

Their concern was that Portable PC market had become quote dynamic, and the CEO didn't see HP being able to evolve with it. In the financial call, he called tablets "a real threat". Even though a ton of people use their PC.
Though I sure would prefer Dell to overtake their PC business.

FMH said,

Their concern was that Portable PC market had become quote dynamic, and the CEO didn't see HP being able to evolve with it. In the financial call, he called tablets "a real threat". Even though a ton of people use their PC.
Though I sure would prefer Dell to overtake their PC business.

If he sees tablets as a real threat to PC markets he is extremely short sighted. Tablet growth is similar to the growth that was seen in netbooks a few years ago. These devices will not go away but within about 2-3 years everyone will nearly forget they even existed. While tablets and netbooks are great devices for some people, especially those who travel often and need something basic for internet and email, their utility doesn't go much past that. That is why netbook sales are down significantly from 2 years ago and why I believe tablet sales will suffer the same fate.

rafter109 said,

If he sees tablets as a real threat to PC markets he is extremely short sighted. Tablet growth is similar to the growth that was seen in netbooks a few years ago. These devices will not go away but within about 2-3 years everyone will nearly forget they even existed. While tablets and netbooks are great devices for some people, especially those who travel often and need something basic for internet and email, their utility doesn't go much past that. That is why netbook sales are down significantly from 2 years ago and why I believe tablet sales will suffer the same fate.

Maybe. Netbook sales are down because of the tablets. Their would need to be something that will eat tablet's market. We don't know what it is, or even, if their is something.

SpyCatcher said,
Dell going to by HP...Dell is not an American company, allowing Dell to Buy HP would lead to 40,000+ layoff's.

What....? Dell is American and where does that number come from...

SpyCatcher said,
Dell going to by HP...Dell is not an American company, allowing Dell to Buy HP would lead to 40,000+ layoff's.

Dell is not an american company????? hahaha ignorant comment ever....

SpyCatcher said,
Dell going to by HP...Dell is not an American company, allowing Dell to Buy HP would lead to 40,000+ layoff's.

Dell not American? Dude...

WTF are you smoking?

SpyCatcher said,
Dell going to by HP...Dell is not an American company, allowing Dell to Buy HP would lead to 40,000+ layoff's.

well I guess some people consider texas not to be part of the USA *rotflmao*

Stewart Gilligan Griffin said,

well I guess some people consider texas not to be part of the USA *rotflmao*

Well when you put it that way... old boy has a point now then don't he? xD

SpyCatcher said,
Dell going to by HP...Dell is not an American company, allowing Dell to Buy HP would lead to 40,000+ layoff's.

Before I laugh (to late for that) I will help you a bit and spekak in your behalf.

Maybe guys because all of Dell products are Made in China, he thought Dell was a Chinese computer makers. Apple is also a Chinese company and so is HP.

So yeah likely if Dell buys HP they will surely lay off a lot of people. lol.
Why pay minimum wage when you can just pay a nickel for the same labor and desk job.

TechieXP said,

Before I laugh (to late for that) I will help you a bit and spekak in your behalf.

Maybe guys because all of Dell products are Made in China, he thought Dell was a Chinese computer makers. Apple is also a Chinese company and so is HP.

So yeah likely if Dell buys HP they will surely lay off a lot of people. lol.
Why pay minimum wage when you can just pay a nickel for the same labor and desk job.

China's labor pricing is no where near as competitive as it used to be. In fact many manufacturers are bringing back labor to the US because once the shipping costs and tarrifs are taken into consideration the cost difference is minimal at best. Some manufacturers are even bringing call centers back to the US because customer satisfaction is down significantly from when they were domestic. Not saying that the US is best at everything but most US citizens like to think that. I personally don't but I'm always the odd man out.

RangerLG said,
I say bring back Packard Bell!

What does this have to do with that? Packard Bell is owned by Acer

LauRoman said,
Iwas gonna suggest that name. Too bad it's already owned by another company.

Too bad it has a horrific past...having had two in the 90s because they were "an amazing bargain". I got what I paid for, that is for sure.

Digitalfox said,
Is HP insane???

The biggest PC maker in world, whant's to get rid of it's division of PC's?

Biggest PC maker != best profits. They may sell lots, but if they aren't making enough money off of it, then what does it matter?

Digitalfox said,
Is HP insane???

The biggest PC maker in world, whant's to get rid of it's division of PC's?

They've been losing money and are projected to continue losing money.

The are largest by revenue, but not profit.

Sraf said,

Biggest PC maker != best profits. They may sell lots, but if they aren't making enough money off of it, then what does it matter?

Not really..they were doing fine.. Their cash reserves were at 12 billion.

the problem is this idiot CEO who comes from a software company and won't quit until he kills HP completely.

HP TouchPad would have been a big success due to HP's brand recognition if it adopted Android for example. But this guy wanted to play this idiotic software game and lost.

It's simple as that.

Boz said,

Not really..they were doing fine.. Their cash reserves were at 12 billion.

the problem is this idiot CEO who comes from a software company and won't quit until he kills HP completely.

HP TouchPad would have been a big success due to HP's brand recognition if it adopted Android for example. But this guy wanted to play this idiotic software game and lost.

It's simple as that.

How does HP's cash reserves being at 12 Billion help? They have more than just the PC business you know

Boz said,

Not really..they were doing fine.. Their cash reserves were at 12 billion.

the problem is this idiot CEO who comes from a software company and won't quit until he kills HP completely.

HP TouchPad would have been a big success due to HP's brand recognition if it adopted Android for example. But this guy wanted to play this idiotic software game and lost.

It's simple as that.

IBM did the same thing and they're doing pretty well. If HP plays this right, they could spin-off the hardware business, and with their recent acquisition of Autonomy I'd say it's likely, that they could make a big play for a lot of IBM's enterprise business.

Boz said,
HP TouchPad would have been a big success due to HP's brand recognition if it adopted Android for example. But this guy wanted to play this idiotic software game and lost.

It's simple as that.

Building another bad Android tablet would not have fared any better than a flop of a webOS tablet.

I'm not sure exactly where brand recognition is taking your purchases, but I steer clear of HP hardware. The HP team supposedly tested webOS on an iPad 2, and it ran twice as fast, which means that it was their hardware that held them back. And beefy hardware is generally what makes or breaks Android.

http://thenextweb.com/apple/20...-it-ran-over-twice-as-fast/

Boz said,

Not really..they were doing fine.. Their cash reserves were at 12 billion.

the problem is this idiot CEO who comes from a software company and won't quit until he kills HP completely.

HP TouchPad would have been a big success due to HP's brand recognition if it adopted Android for example. But this guy wanted to play this idiotic software game and lost.

It's simple as that.

1. autonomous cost 10 billion dollars
2. they have 4.5 percent of their revenue is debt..

Digitalfox said,
Is HP insane???

The biggest PC maker in world, whant's to get rid of it's division of PC's?

Mobil Oil ditched most of its gas stations. They were profitable, but not profitable enough. It was particularly irritating here in AZ where the vast majority of them were closed and the convenience of my mobil speed pass was lost...

Sraf said,

Biggest PC maker != best profits. They may sell lots, but if they aren't making enough money off of it, then what does it matter?

Agreed! HP is a victim of 2 glaring mistakes - Manufacturers willing to cut corners everywhere in order to turn over large volumes of pc's even if it means killing their own profit margins AND consumers who don't give a damn about quality as long as it is cheap. Capitalism is great in the regard that it keeps prices low for consumers on most products but when manufacturers allow price wars to cut into their bottom lines and consumers stop caring about quality it really takes its toll on competitive markets as a whole.