HP’s Loss in PCs Means It Needs to Work on Tablets and Smartphones

 
Hewlett-Packard (HP) has recently suffered a huge loss of $8.9 billion in its annual profit. Manufacturing of computer for which the company was known are not faring well in sales and have received less than satisfactory reviews. Customers are also switching on to other brands. In order to revive back its profit-making, HP has recently announced that it will be cutting off a few of its PC models by 25% over the course of the next two years.

Around 30% of its printer models will also be reduced. Due to such negative news, HP has been losing points on the stock market too. There were rumors that HP will be selling out all of its PC business, however, for some reason, it has decided to stick to it. Some experts believe that even concentrating on developing smartphones and tablets has also been a wrong decision on part of the company. But, for the insiders in HP, producing better tablets in design will help it turn around its business.

Till the next year, HP announced that there will be no smartphone lines from it. However, HP did announced plans to do something about producing newer smartphones because it does not want to miss out on a huge number of customers interested in this technology. Also, because they have become the latest computing devises. Some days, PCs and laptops will be part of the technology museums and if HP wants to continue far into the future, it must switch gear in its manufacturing lines.

Right now, HP offers all-in-One PCs, laptops, hybrid PCs, tablets and smartphones. What HP fears is the tough competition that it faces from brands like Apple, which has successful line of tablets and smartphones. Besides, Samsung is also faring well in the smartphone business. Hence, for HP to start into such devices right now is not possible. Before it could do this, it requires getting back to business on other products it offers. If all else fails, HP’s analysts that it has its server, network and storage business to rely on to carry further.