TVs and computers are practically cousins, right? Hewlett-Packard
These new models are HP's attempt to catch up with competitors like Motley Fool Stock Advisorpick Dell
HP's TVs aren't your usual digital displays. Among other features, they'll wirelessly link to PCs, letting users view photos or listen to music downloads from the comfort of their couches. The new TVs use cutting-edge technology to automatically adjust the image quality according to the amount of light in the room. HP is also using custom image-processing software to make the picture twice as sharp without increasing the number of pixels displayed -- a technology called "wobulation." The new screens should allow the company to manufacture high-quality TVs at lower production costs.
Earlier this summer, HP initiated restructuring efforts by downsizing its workforce and announcing that it would refocus on its core businesses. Mere months later, HP's new TV initiatives seem to be expanding exactly how the company defines "core business." Will these new products mesh with HP's other businesses, or will the expansion into TV negate the company's attempts to simplify?
At first glance, analysts might view the introduction of more TVs into a mature market as a bad move. But look again at the company's operating segments, and you'll see that these new computer-connected TVs mesh nicely with HP's imaging, printing, and computer segments. It's telling that management seems to be committed to the TV space; in HP's case, management generally knows best.
Does the company have what it takes to compete against Sony
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