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News
Why HP Minus iPod Adds Up
Monday, August 1st, 2005 at 3:00 PM - by Brad Cook
BusinessWeek's Peter Burrows posits in his latest column that Hewlett-Packard's decision last Friday to end its distribution of iPods "may be a major step forward in solving a big problem that isn't easily measured in dollars and cents: HP's identity crisis." Mr. Burrows says that "for the past decade or so, HP has been too focused on deciding who to be like, rather than on finding its own way."
Part of that was the iPod deal, which Mr. Burrows thinks was part of former HP CEO Carly Fiorina's attempt to "fix the computing business by melding HP's vast portfolio of products into soup-to-nuts solutions that would solidify its position with corporate buyers and pad its profits -- much as IBM does." He adds: "On the consumer side of the house, Fiorina seemed to take her cues from Apple. The message seemed to be that if HP could be as mighty as IBM, it could be a cool as Steve Jobs & Co., to boot."
Now that new CEO Mark Hurd has taken the reins of the company, Mr. Burrows believes he needs to "ruthlessly prune its overgrown garden of projects and initiatives, and once again focus on those that can lead to creation of its own hit products -- and I'm not talking about iPod tattoos."
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