Tomahawk, WI 04/21/2014 (Basicsmedia) – There are few companies in Silicon Valley with the scale of Hewlett-Packard Company (NYSE:HPQ). There are not many companies in the high tech business with a turnover in excess of $100 billion. Only International Business Machines Corp. (NYSE:IBM) and Apple Inc. (NASDAQ:AAPL) have a turnover over $100 billion. HP has been going through tough times in recent times just like IBM. But since the appointment of Meg Whitman, things have stabilized and HP is focused on making sure that it grows in a competitive market.

Hardware Is A Low Margin Business

Except Apple, no one has much of a profit margin in the hardware business. When IBM saw the writing on the wall, it ceded the PC-making business space and sold its PC business to Lenovo. Even Dell had to turn into a private company after its PC business suffered. Hewlett-Packard Company (NYSE:HPQ) has been able to stay in the computer hardware business because of its corporate customers who trust the robust quality of HP and the fact that it offers a range of hardware including PCs, laptops and servers apart from being a leader in printers. But even servers have become commoditized now a day with many vendors which is why IBM is selling off its servers business to Lenovo.

3D Printers

Considering how strong HP is in computer printers, it makes sense for HP to move into the nascent 3D printing industry. Even traditional manufacturing giants such as General Electric Company (NYSE:GE) are making strong investments in the additive manufacturing industry.

This is a time of massive growth in the 3D printing business. With HP’s heft and scale, it should make the initial investments necessary to reap the benefits in the long run. Although restructuring, layoffs and cost cutting are good measures, HP must seek ways to grow and not keep getting smaller and smaller.


The other arena where HP needs to double down is the tablet business. The persistent trend line of a declining PC market and growing smartphone and tablet market should tell Hewlett-Packard Company (NYSE:HPQ) that this is a business it cannot afford to ignore. HP’s obviously still conscious from its earlier multi-billion dollar acquisitions-related losses such as the Autonomy takeover or the Palm debacle, but HP will need to enter a market where everyone else — including Apple, Microsoft, Dell, Lenovo — is present sooner rather than later.

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