Re: So let me see if I've got this right.
"..."HP passes on these higher costs to the consumers via high(er) PC/laptop prices"
Possibly, but the price they can charge for their kit will be dictated by the market so it possible that this actually meant that they were forced to sell their PCs with a lower markup than their competitors who were not being gouged on the cost parts...."
This. I am far from a huge fan of HP(E) et al over the last decade or so, and it pains me to see the company that was a true innovator turned into a gouged-out, hollow, facsimlie of its former self, but in this case, it is easy to forget just how tight the margins on PC equipment has been over the years.
I was at HP when Apothekar wanted to throw the PC business under the bus because the margins were so thin, completely and utterly forgetting that it was still generating billions annualy in actual profit at the time.
As d3vy says, because of the other big players snapping at their heels (Dell, IBM/Lenovo, etc) HP wouldn't have been able to just increase the price of their PC's significantly oitherwise they'd simply lose the business.
No, I am on the side of HP on this one, for once.