Lenovo, not bad for their 27,000 employees, a tenth of HP's and Lenovo's market cap of 8+ Billion, versus HP's of ~ 28 Billion..
HP has taken the very unusual step of issuing commentary on IDC's latest PC sales data, which says the PC market is now nearly a tie between HP and Lenovo. That assessment is in marked contrast to Gartner's most recent effort on the same topic, which has Lenovo at number one. Both analysts' data make for ugly reading. IDC's …
"Lenovo, not bad for their 27,000 employees, a tenth of HP's and Lenovo's market cap of 8+ Billion, versus HP's of ~ 28 Billion.."
Yeah, well, Lenovo is just that - a PC manufacturer. It doesn't have a large server business, it doesn't have a storage business, it doesn't have large UNIX servers (HP Integrity), it doesn't have mission-critical high availability systems (HP NonStop), it doesn't have a large software business, and it lacks most of the other areas HP is active in one form or another.
If "... a PC manufacturer.", can close in on a HP business unit, you gotta wonder what shape the rest of their biz units are in. There are other companies that see a real opportunity here to eat into HP's market share. For HP to "invent" it needs R 'n D Dollars, something lacking over the last number of years.
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".......They sold $18 billion at 2% profit margins......." Erm, I think you'll find that was $360m profit, which isn't to be sniffed at. So what happens when the UNIX market has shrunk to zilch, mainframe has long-since already died, and Dell and hp have walked away with the x64 server market, maybe IBM will be a bit worried about $360m then. Profit is profit, even if it's made in PCs and printers, as Sun learned to their cost.
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