Monday, August 20, 2012

iPad expected to push HP into largest quarterly loss


Could HP become the Nokia of PCs? Although the largest PC seller in the US, HP is expected to announce record-breaking quarterly losses later this week. As Nokia never could adapt to a market now dominated by smartphones, HP foresees nearly $9 billion in losses – much from the runaway adoption of Apple’s iPad.
On word that PC sales in the US were down 12.7 percent during the second quarter, HP is expected to loose between $8.5 and $8.9 billion in stock value, according to theAssociated Press. Meanwhile, record iPad sales are helping Apple become the world’smost valuable company…
Indeed, if iPad sales were counted alongside computer purchases, the tablet would account for 19.4 percent of all PCs shipped, analyst firm Canalys announced. By comparison, HP would drop to No. 2, as computer sales fell 11.3 percent for a 12.5 percent piece of all PC shipments.
You may remember HP, like so many other firms, took a run at competing against the iPad. When the company bought failing Palm, the key spoil from that takeover was the webOS, which HP quickly used for its TouchPad. The TouchPad became the Edsel of iPad-killers, quickly crashing and burning in bargain basement sales.
However, that experience may not have taught HP any lessons. Reportedly, HP is mulling over whether to create a new tablet, this one based on Android. In the meantime, HP along with other PC makers, await the Oct. 26 release of Windows 8, which might allow the PC to limp along for a few more years.

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