Posts Tagged: hp


23
Aug 11

HP Personal Sys Grp 4 Sale: Call Léo

It’s those damn phone hackers again. This time they’re listening in on Léo Apotheker’s conversations at HP. I can’t condone the hackers’ methods, but I thought this transcript would be of interest to my readers.

——————————————————–

8.22.2011 | 9:48 am | HP | Apotheker Office Line 2

JACK
Hello, is this Léo?

LÉO
Yes, who is this please?

JACK
Hi Léo, my name is Jack.
I’m calling about the Personal Systems Group for sale?

LÉO
Yes, hello Jack. How can I help you?

JACK
Well, can you tell me a little more about it?

LÉO
Anything in particular?

JACK
Does it come with all the accessories? Like confusing
models and configurations, mediocre designers, invisible
profit margins, crapware and infuriating tech support?

LÉO
Yes, it comes with all the essentials.

JACK
And you’ve sold your soul to Intel and Microsoft?

LÉO
Correct, and those contracts will be included as well.
They’re fully transferable.

JACK
Perfect. Well look, I’m very interested.
Are you flexible on price?

LÉO
I’m sorry, no. It’s just supply and demand.
Right now, we’re the only PC group for sale —
at least until Michael Dell accepts reality.

JACK
Alright, but listen, I’m also interested in tablets
and smartphones. Anything like that available?

LÉO
I do have tablets and smartphones, but they’re not for sale.

JACK
Just my luck. I was bidding for Palm a year ago and
some ass swooped in and bid $1.2 billion for it.

LÉO
Uh … that was my company.

JACK
Oh god, I’m sorry. I didn’t mean to call you an ass.

LÉO
No prob, it wasn’t me. It was the guy who had my job before.

JACK
Okay, I get it. So you’re going to keep selling WebOS tablets
and smartphones then?

LÉO
Actually, not. We’re going to caravan out to the Palo Alto
landfill and dump all the code and unsold devices.

JACK
Wouldn’t it be easier just to sell it all to me?

LÉO
No, I need to prove that my predecessor wasted a billion dollars.
If I sell it to you, we wouldn’t lose nearly as much.

JACK
(Dramatic pause)
Ass.


24
May 11

Riding the wave vs. following the wave

You can tell a lot about a company’s spirit by the way it handles innovation.

Some live to lead the way, others prefer the safety of “wait and see.”

When I was reading about how HP passed over Thunderbolt in its new PCs, it stirred an ancient memory on this topic.

I was working on behalf of Apple when iMovie came out. Apple, of course, invested heavily in iMovie, plastering its message all over TV. You’ll have to remember, the ability to make cool videos on your computer was brand-new then. There was no YouTube. Apple wanted to get people thinking about something they hadn’t been thinking about before.

About a year later, I was working in the world of Intel (before they hooked up with Apple). By this time, there were plenty of apps for making videos on a PC. Intel, interested in creating a new campaign for consumers, decided they should first ask consumers what they like to do on their computers. So they ran focus groups all around the country. They found that most people were browsing the Internet and doing email (duh), and that sharing photos was the third biggest thing. Way down near the bottom of the list was making videos.

Email and browsing were a little too boring even for Intel, so they chose to highlight photos in their ads. In other words, they chose to sell people on what they were already doing vs. opening their eyes to something new.

I thought this was pretty sad, considering their technology enabled all kinds of cool things. They could have ridden the wave, but instead they followed it.

So the other day I was reading this PC World interview with HP’s worldwide marketing manager for desktops, Xavier Lauwaert.

Asked why HP chose not to include the new high-speed Thunderbolt technology in its latest line of desktop PCs, Lauwaert said, “Haven’t found a value proposition in it yet.”

He went on to explain, “On the PC side, everybody seems to be content with the expansion of USB 3.0. Do we need to go into more fancy solutions? Not convinced yet.”

Now I do understand that the verdict is not yet in on Thunderbolt. It’s more HP’s language that I find disturbing. (Assuming that Lauwaert is authorized to speak for the company. If not, he should be slapped.)

For a company built on innovation to hold back on new technology because they think customers are “content” is kind of lame. To ask “Do we need to go into more fancy solutions?” makes it sound like innovating is too much of a bother for HP.

Listening to these words leads one to believe it’s a case of either-or. It isn’t. Apple added Thunderbolt to iMac in addition to its other ports. It sounds more like rationale than putting the customer first.

If HP was built on invention, and it wishes to stand for invention, it really should act a bit more like it cares about invention. Not just in products, but in the words they choose.


4
Dec 09

Extinct species discovered alive!

Thrill the family this holiday season!

Make this a Christmas to remember

Millions of years after humans learned to walk upright, desktop computers did the same. PCs in the “pancake” shape, with monstrous CRT displays perched atop, disappeared. They were replaced by towers, mini-computers or all-in-ones. Or so we thought.

I just received a Buy.com email offering up this HP DC5100 SFF (automatic entry into our “best name” category), and of course my jaw dropped. How cool would this thing look next to my rotary phone and Rolodex?

Naturally, this offer piqued my interest. Could any of the major PC companies really be in the antique business? Turns out, the answer is no. Not even HP, whose fingerprints are at this crime scene, engages in such behavior anymore. Buy.com’s dinosaur is actually a refurbished dinosaur, appropriately configured with a full gigabyte of memory and a 40GB hard drive. It can be had for a mere $149.

So I’m disappointed. But there still might be a PC Hunters commercial hiding in here somewhere…

Addendum 12.4.09 5:38pm: Looks like HP is still has an appetite for pancakes. See comments on this one.


30
Nov 09

The world’s biggest little market share

Apple has 'em right where they want 'em

It's Mac's 4% vs. the PC's 96%

Now wielding a fearsome 4% market share in computers globally, Apple finally has its competitors right where it wants them.

Seriously.

Because this huge gap in market share is laying bare a huge gap in profitability. And this one doesn’t bode too well for the big guys.

Apple simply has a better business model — racking up record profits quarter after quarter. Its market cap is now not only 5x that of Dell, it’s bigger than Dell and HP combined. There’s even talk of Apple pulling in more cash than Microsoft by the year 2012.

What the hell is going on here? Actually, it turns out that our PC friends were right: PCs are more affordable than Macs, and most people don’t think Macs are worth the premium.

Unfortunately, they stop reasoning one sentence too soon. There are millions of people in this world who will eagerly line up to pay a premium when they believe a product is actually worth it. BMW isn’t about to go under because their cars are more expensive than those from Honda.

Now that I’ve dumped on the validity of market share numbers, let’s look at … market share numbers. But this time, let’s look at a few that highlight Apple’s unique situation.

In computers over $1,000, Apple’s U.S market share in June was an almost unbelievable 91%. In October, 47% of the actual dollars spent on desktop computers in the U.S. were spent on Macs. And just to make themselves thoroughly annoying, Apple follows the same model in an entirely different product category. They also now out-profit Nokia, again doing so with a relatively tiny total market share.

Bottom line: you might think twice before you invest your money based on a head count. Market share is critical if you want to own the world — not so much if you want to change the world.


6
Nov 09

Choking on their own words

I have to thank my new best friend Sekhar in India for this contribution. It’s an HP commercial currently running in his country. In just 30 seconds, it demonstrates the absurdity of complex product naming.

The narrator for the spot is speaking to us human-to-human, until someone sticks a gun in his back and forces him to say:

My HP Pavillion dv5-1221tx Notebook PC for high-definition entertainment tells my story. What’s yours?

Well, whatever my story is, I’m sure I can say it quicker than that. Pardon me for counting, but that PC moniker runs a full 13 syllables! I suspect this is a record that will stand for some time. Though I don’t doubt that new contenders are warming up in the wings…

Update 2:00pm EST 11.06.09: I was having some fun with this one, but I probably should have made a serious point. Every advertiser has to be extremely realistic about what a viewer will take away from an ad. It is unrealistic to believe anyone will remember this ridiculous product name. It is very realistic to believe they might remember HP makes a cool notebook. Forcing this crap into the commercial only distracts from the good stuff. Whoever insisted on this needs to be taken out to the shed.


5
Nov 09

Lost in the laptop labyrinth

laptop_configs

Every PC company tries to make it easier for customers to buy their stuff. Unfortunately, there’s a lot more to it than streamlining the checkout process. The real problem is a nasty one, rooted deep in the corporate culture — and all seem powerless to fix it:

Their product lines are bloated to the extreme.

I’ve prepared this handy chart to illustrate the absurdity. This is a look at laptops only (it’s equally horrifying on the desktop side), as presented on each company’s website. Apple offers only three models. Dell weighs in with ten. And HP over-weighs in with 19. It hurt my fingers just to type them.

With Apple, you simply pick one of the three basic models, and then customize based on your needs. Why does this lesson in simplicity elude the monoliths of PC-dom? Because their companies are structured around separate groups that don’t communicate well with each other, each fighting for its own budget and its own survival.

I venture to say that PC customers would be a lot happier if their basic choices were simpler. (The model names are stupefying too, but let’s save that topic for a future post.) Once you have an obvious starting point, its vastly easier for a human being to commit.

Not only would customers be happier with fewer models, the computer companies would shave millions off their operating costs — when razor-thin margins are what’s gotten them into this mess in the first place. Streamlining their offerings would drastically cut spending on manufacturing and marketing.

By spewing models as they do, PC companies actually put more distance between themselves and their customers. They’d bond more deeply if they guided their customers down a well-lit path. The sad fact is, those battleships really are difficult to turn around.