Feeds

HP chief bows to Jobsian cult

The tablet Apple effect

Build a business case: developing custom apps

Why is HP killing its webOS tablet and hoping to spin-off its PC business?

Apple.

During HP's quarterly earnings call with reporters and analysts on Thursday afternoon, company CEO Leo Apotheker explained the company's unexpected about-face with an admission that may seem paradoxical on the surface, but ultimately makes perfect sense. "The tablet effect is real and sales of the TouchPad are not meeting our expectations," he said.

And then he said it again: "The tablet effect is real and our TouchPads has not been gaining enough traction in the marketplace."

Apotheker's message is quite clear. And it looks something like this: "I'm getting spanked by a skinny man in a black turtleneck."

Yes, there are other forces at work. Apotheker points to the economy. "There’s a clear secular movement in the consumer PC space. The impact of the economy has impacted consumer sales," he said. "For our PC business to remain the world’s largest personal computing business, it needs the flexibility and agility to make decisions best for its user direction."

But ultimately, he's admitting defeat at the hands of the Jobsian cult. "The tablet effect is real" means that people are buying tablets instead of PCs. But they're not buying HP tablets. "Our webOS devices has not gained enough traction in the marketplace with consumers and we see too long of ramp-up in the market share," he said.

"Due to market dynamics, significant competition, and a rapidly changing environment – and this week’s news only reiterates the speed and nature of this change – continuing to execute our current device approach in this marketplace is no longer in the best interest of HP and HP shareholders."

It's not. All those shareholders are wishing they'd bought Apple. The tablet effect is quite real, and it's affecting desktops and notebook sales at Apple too. It's driving them up.

Calling it the tablet effect doesn't quite do it justice. ®

The essential guide to IT transformation

More from The Register

next story
So, Apple won't sell cheap kit? Prepare the iOS garden wall WRECKING BALL
It can throw the low cost race if it looks to the cloud
End of buttons? Apple looks to patent animating iPhone sidewalls
Filing suggests handset with display strips
One step closer to ROBOT BUTLERS: Dyson flashes vid of VACUUM SUCKER bot
Latest cleaner available for world+dog in September
Samsung Gear S: Quick, LAUNCH IT – before Apple straps on iWatch
Full specs for wrist-mounted device here ... but who'll buy it?
Apple promises to lift Curse of the Drained iPhone 5 Battery
Have you tried turning it off and...? Never mind, here's a replacement
Now that's FIRE WIRE: HP recalls 6 MILLION burn-risk laptop cables
Right in the middle of Burning Mains Man week
Apple's iWatch? They cannae do it ... they don't have the POWER
Analyst predicts fanbois will have to wait until next year
Tim Cook in Applerexia fears: New MacBook THINNER THAN EVER
'Supply chain sources' give up the goss on new iLappy
Reg man looks through a Glass, darkly: Google's toy ploy or killer tech specs?
Tip: Put the shades on and you'll look less of a spanner
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.