No. of Recommendations: 2
"I merely reported a news story."

No you didn't.

1) Obama's name does not appear anywhere in the story. He had no more to do with HP than you. You could just as well call it the JEDIGALT layoffs.

2) HP's problems are HP's creation. Actually they had 2 CEOs in a row that got bounced pretty quickly. Here is one that does mention Obama in passing.
3) Giving away printers to get consumers to pay big markups on your ink and branded paper only works for so long. (The John Young era). People eventually figure out that the cartridges can be refilled and there is nothing special about HP branded paper.
4) The business model of trying to become a monopoly (The Carly Fiorina era) only matters if that particular market is worth monopolizing. Retail PC sales (the idea behind buying Compaq) was not worth it.
5) Trying to monopolize services (buying DEC and EDS) is only going to get you a position competing with every other IT company on the planet with nothing special (The Leo Apotheker Era).
6) In general, charging big markups on stuff you don't actually make (buying everything from Hon Hai and such) leaves you with a product line of "noting special" and "me-too".
7) The last invention of note to come out of HP labs was the optical mouse. That was a while ago.
8) HP research spent a bunch of money on LED technology and got out of it just when LED technology started to take off. They dropped a bundle on Field Emission Displays and got nothing.
9) HP has had a long run of paying a premium to buy other companies (add Palm to the list above) and turning them into nothing.

Net/net an unproductive research lab, a string of high dollar acquisitions that resulted in nothing, a philosophy of buying everything from Asia and just putting your name on it, and the aging of their golden goose in the personal printer market, yep! sound like Obama's doing.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.