1 Simple Reason HP Will Never Be Great Again

In the following video, Jeremy Phillips and Austin Smith discuss the future of Hewlett-Packard.

Austin says HP could be the next IBM if it were to develop a tech consulting arm, which would be a cash-flow machine. But it hasn't said anything about doing so. Instead, the company is working on a 3-D mobile display, a technology that's easy to disrupt, doesn't help in terms of a moat, and may not even be patent-protected.

In short, the likes of Apple can gain market share, even as it charges more, while everyone else is focusing on things like specs. As Austin sees it, HP and archrival Dell are simply focusing on the wrong things.

For more details, check out the video.

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Read/Post Comments (7) | Recommend This Article (3)

Comments from our Foolish Readers

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  • Report this Comment On March 31, 2013, at 2:37 PM, giuseppe1149 wrote:

    What more would you expect from a couple of Fools who own Apple stock. Just keep pounding the table for Apple and saying that there's no way that HP will be great again. Never say never boys! You haven't lived long enough to be able to make those kind of proclimations.

  • Report this Comment On March 31, 2013, at 4:05 PM, eldernorm wrote:

    Giuseppe, your nose grows longer with each tale you tell... LOL

    HP is not doing anything different. Why should its direction change??? Just cause YOU want it too...

    As far as Apple, lets see, its $140 BILLION in cash, NO debt, and its still selling like hotcakes. Yep sounds like its doomed to me.

    Dreaming is good unless you do it in the day time.

  • Report this Comment On March 31, 2013, at 4:09 PM, BillandDave wrote:

    Shouldn't you two kids be outside hunting Easter eggs? Hewlett Packard already has a tech consulting unit.

  • Report this Comment On March 31, 2013, at 7:31 PM, manelt wrote:

    Hm, you might agree or not with the conclusion, but it's been such a long time since I heard such an inconclusive analysis done with so much security and gesticulation. I don't know if I should invest in HP, but I surely would not invest in you two...

  • Report this Comment On March 31, 2013, at 7:45 PM, cdkeli wrote:

    The only actual reason is that the founders are both dead and you've only got bean-counters and secretaries running the show...Isn't that enough??

  • Report this Comment On March 31, 2013, at 7:53 PM, manelt wrote:

    Just like apple. No, it is not enough. You actually are supposed to *think*...

  • Report this Comment On March 31, 2013, at 9:41 PM, freemarket68 wrote:

    These guys don't know what they are talking about. The 3D display is a disruptive technology, not an incremental one, for the sole reason that it does not require glasses. That is one of the biggest (if not the biggest) problems of any 3D technology. This is only one of the technologies coming out, not the one, and will still take a while to happen.

    I will agree that one technology will not make it turn around. In the mean time, the apple fan boys that shorted HP are losing money, for a whole different set of reasons, are just picking on something they claim as "specs", without having a clue what they are talking about.

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