Opportunities
Expanding further into Android is probably the company’s biggest opportunity. If HP’s latest Android offering, the Slate 7, becomes successful, then the company should definitely invest in releasing an Android product line. Whitman recently stated that HP will focus more on tablets in 2013 and the Android platform is possibly the best option to do so. Dell, on the other hand, now relies completely on the Windows OS after the failure of its Android based Streak tablets.
Entering into the smartphones market, once again, is also another opportunity for the company. Whitman believes that HP needs to invest in the smartphones business and needs to have an array of devices, although, the company won’t be releasing any new smartphones until 2014.
The Windows 8 market could be another opportunity for the company. While the PC market continues to decline, Windows 8 convertibles and hybrid devices look quite promising. They, basically, provide something in between a tablet and a laptop. The concept is really interesting and a lot of people have been impressed by the new Windows 8 convertibles. HP has already released a Windows 8 hybrid, the Envy x2 and if the market, for these hybrid devices, the company can release a few more of these innovative hybrid PCs.
Threats
Looking into the PC market, Hewlett-Packard Company (NYSE:HPQ)’s 2 biggest competitors are Lenovo and Dell Inc. (NASDAQ:DELL). Dell has lacked product innovation for years and the company continues to decline in the PC market. Lenovo, on the other hand, finally beat HP in terms of global PC shipments. HP’s biggest threat comes from Lenovo as the Chinese manufacturer uses lower prices to its advantage. Lenovo, previously, was known for its cheap low-end PCs, however, the company now looks promising in the high-end PCs as well, after the release of its Yoga 13 convertible ultrabook. ASUS and Acer are other competitors in the PC market with their own line of Windows 8 devices.
In the PC plus Tablets market, Hewlett-Packard Company (NYSE:HPQ) faces competition from all the major Android tablet manufacturers, including Samsung. Analysts believe that tablets are the future of PCs and Android, as a whole, is a major threat to HP. HP’s latest Android slate features low-end specs, which is why it is prices significantly lower compared to Samsung’s Galaxy Tab and Nexus 10. Other manufacturers such as ASUS already have a decent market share in the tablets segment and HP’s late entry poses a major threat to the company.
Verdict
HP has been facing hard times in 2012, mainly because of the decline in PC market. However I think the title should have been: Merger of Office Supply Retailers? – Office Depot Inc (ODP), OfficeMax Inc (OMX) is definitely on the right track as the stock continues to jump in 2013 while the company undergoes a restructuring process with new management. Meg Whitman has big plans for the company in the future and expects a massive revenue growth from 2014. While the Personal Computer fades away, 2013 will be a vital year to analyze HP’s situation going forward.
The article Can HP Bounce Back? originally appeared on Fool.com and is written by Yasir Idrees.
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