Confusion causes HP to hemorrhage customers

Confusion causes HP to hemorrhage customers

Summary: Where's HP going? Customers aren't sure, and as a result aren't happy to spend money.

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TOPICS: Hewlett-Packard
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Lack of clarity over HP's plans are causing companies wanting to invest in new hardware to look elsewhere, according to a report in the Wall Street Journal [subscription required].

HP's announced some big changes recently - webOS devices are out and it wants to spin off the PC business - and this is making customers looking to spend dollars nervous.

"It appears that they're lost right now."One example is engineering company Fluor, a firm which spends about $25 million a year on IT. "I've put that all on hold and won't buy from HP," said Fluor chief information officer Ray Barnard. "It appears that they're lost right now."

Another concerned customer is Frank Cervone, a vice chancellor for information services at Purdue University, who seems confused about where HP's future plans are. "This appears to just come out of the blue without a really good explanation, it makes you wonder what the strategy really is and where it is going."

HP needs to do something to address these concerns, and do it fast.

Topic: Hewlett-Packard

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28 comments
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  • RE: Confusion causes HP to haemorrhage customers

    Yep. We had just switched to HP ProBooks to save money, but now we're not buying HP until they figure stuff out. We did the same thing when IBM sold its PC division to Lenovo. We're still not buying Lenovo.
    ncted
  • RE: Confusion causes HP to haemorrhage customers

    HP really seems as lost as when Carly was running it. As other articles have said, they've create corporate suicide somehow; alienate customers and make both the business and consumer base frightened about you... Glad I don't own HP stock.
    Evo_7
  • RE: Confusion causes HP to haemorrhage customers

    They used to be such a good company. Then they went acquisition crazy, and nothing really meshed. Their C-suite must resemble the old Marlboro State Psychiatric Hospital now.
    thetwonkey
  • Confusion causes HP to hemorrhage customers

    it seems to be a truism that whenever the founder leaves or dies, a company lost its bearing culminating in its eventual demise or hemorrhaging. happened to tektronix, apple, and is happening now in hp, and soon with microsoft and perhaps oracle in the near future...
    kc63092@...
    • I disagree.

      @kc63092@... <br>Apple, Microsoft, and others are headed in the right direction. Yes a mistep or two, but the course is now corrected.<br><br>In HP's case it is different as they are allowing short term profits to decide their direction, not a cohesive plan for the future.<br>
      Tim Cook
      • Diddo

        @Mister Spock Par say hp is just rekindling old relationships with their past aggregations and affiliations. Plus, for a company that just hit the highest amount of sales for the tablet market, it is no wonder why they are trying to check their math again and again here.
        cosmos-420man
      • RE: Confusion causes HP to haemorrhage customers

        Is there any possibility of getting you to tell us how selling or spinning off the PC Division is an attempt to pursue short-term profits at the expense of a long-term vision? How about taking a bath on a half-million TouchPads... what's that going to do to the quarterly report?

        I eagerly await your presumably logical explanation for why you would say such a thing.
        Robert Hahn
      • MS and Apple still have their founders as chairmen

        @Mister Spock
        Neither Bill Gates nor Steve Jobs direct day to day operations, but they're still in a position to influence the general direction of their respective companies. If I remember correctly, Mr. Gates' plan was to work half time at MS and full time at the Bill and Melinda Gates foundation (reversing his previous policy). I assume he is following through on it.


        The Hewlett and Packard families lost most of their influence over HP when they (rightly) opposed the merger with Compaq.
        John L. Ries
    • au contraire

      @kc63092@...
      A founder leaving a company may produce a difficult transition, but it is not a truism that the company dies. Ford Motor is still going strong as is Toyota and IBM and Apple.

      Probably the problem with HP is they don't know who they want to be. They started out making really great quality instruments. In the last decade or more they have been casting about from one business to another.
      neutrino23
      • RE: Confusion causes HP to haemorrhage customers

        @neutrino23 ...
        The real problem is the jerk running the company into the ground. I instructed all of my family and friends to buy anything but HP. HP's problems go way beyond the enterprise customer. No one trusts them.
        vince7@...
  • RE: Confusion causes HP to haemorrhage customers

    We have switched to buying Dell as it seems they are the only company that is not spinning off their PC division. HP and IBM/Lenovo don't seem to value my business any longer.
    huntthemducks
    • Going from perceived uncertainty to crapware is not a smart move

      @huntthemducks Anybody who does real work on computers know that Dell is just crapware at a premium price. You buy a "corporate class" computer and when you open it, it has the exact same part as the cheapest piece of crap you can buy from them.

      Have you ever seen any PC maker installing a plastic shell connected to the back case fan instead of a CPU fan on a "server"? That is Dell for you.
      wackoae
      • RE: Confusion causes HP to haemorrhage customers

        @wackoae - Seriously, that's your example of why Dell is bad?

        Also, for corporate/business systems, Dell doesn't install crapware, that's reserved for consumer systems.
        PollyProteus
    • RE: Confusion causes HP to haemorrhage customers

      @huntthemducks
      Problem is dell makes really bad computers and their customer help is horrid only better then sonys.
      Fletchguy
  • Lost Interest in HP

    After decades and thousands of dollars in HP purchases, they seem to have lost interest in me as a customer. I can accept that. But nothing they do now will get me back. Sayonara, HP.
    tomjw217
    • RE: Confusion causes HP to haemorrhage customers

      @tomjw217
      AMEN. I got stuck with a former high-end scanner (no post-XP support) and a moderately high-end laser printer (Windows-7 less functional than XP drivers). Sayonara, HP.
      TsarNikky
  • RE: Confusion causes HP to haemorrhage customers

    Who would ever want to be stuck with unsupported hardware--either consumers or businesses? "Orphans" are an expensive luxury.
    TsarNikky
  • RE: Confusion causes HP to haemorrhage customers

    n/a
    SnappyD3
  • RE: Confusion causes HP to haemorrhage customers

    Terrible customer support with the DV/nVidia overheat fiasco. All they had to do, is offer a rebate to sell directly (at wholesale) a newer unit. Instead they stonewalled the issue, and did not honor warranty.<br><br>HP is off our approved list for Laptops & Designjet printers for the last 3 years.<br><br>Toshiba had a similar issue in ~2001, they issued "Toshiba freecard" credit, and they are still on our approved vendor list.<br><br>Can you say: Arrogance??
    SnappyD3
  • &quot;Pandemic&quot; Amongst Corporations

    This sort of behaviour is "pandemic" in the corporate sector these days.
    To get a few more customers, they alienate the millions of customers they already have.
    Instead of rewarding the existing customers they say, "Scr@w them. We've already got their money. What have they ever done for us?"
    lehnerus2000