HP and Dell are both struggling enormously to make money.
Consider this: Since Apple Inc. shifted the direction of computing with the release of the iPhone in June 2007, HP’s market value has plunged by 60 percent to $35 billion. During that time, HP has spent more than $40 billion on dozens of acquisitions that have largely turned out to be duds so far
The latest reminder of HP’s ineptitude came last week when the company reported an $8.9 billion quarterly loss, the largest in the company’s history
Read the whole article – it’s fascinating. The key thing that I started thinking about when I heard the headline is that IBM saw all this in 2005. They sold their ThinkPad brand to Lenovo.
Spotting the big trends and making bold decisions is sometimes less risky than not.