It seems the company known as HP (Hewlett Packard as was) has decided on a very different strategic direction than the one taken currently. In future HP will not make PC and suchlike products, something they do an awful lot of at present.
Naturally this announcement sent the share price crashing and I don't see what else the bosses thought would happen. The twin questions I suppose are; why are you doing this and as to the future course in large systems, what is this based on? If you aren't known in that sector particularly, surely you build a new business sector first and then perhaps, move away from something that you see as a failing business.
As an immediate reaction their tablet product has been price slashed with PC World/Currys reducing the base product from £400 to £90. It will worry people about support going forwards, but I would say, at that price what support will you miss? I doubt there will be a large amount of stock around though!
You have to say, the after shocks of a recession are sometimes strange, but make interesting reading. What would you predict for the next surprise announcement? Lego to make pet food?
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