HP's Windows 8 launches 'muted,' says analyst
Hewlett-Packard's Windows 8 product launches have been nothing to write home about, according to an analyst at RBC Capital Markets.
LAS VEGAS--Hewlett-Packard's Windows 8 launches were "mixed" and "muted," according to a research note from RBC Capital Markets analyst Amit Daryanani.
"HP noted Win8 launches were mixed/muted but should improve in H2:13," Daryanani wrote in a research note sent out yesterday, referring to the second half of 2013.
Daryanani met with HP at CES in Las Vegas, according to the note.
He continued: "HP is focused on mid/high-end of the market as they don't see profit opportunity in low-end. Focused on growing China market share (opened a design center)," he wrote.
HP introduced Windows 8 laptops like the Envy TouchSmart Ultrabook, the Spectre XT TouchSmart ultrabook, and Envy x2 -- all touch-capable products. Part of HP's launch problems may be related to the fact that a number of products only became available late in the fourth quarter, including the Spectre XT TouchSmart and Envy x2. In the note, Daryanani did not get specific about products.
Daryanani also said that most of HP's planned "29K headcount reduction" should be completed by FY13. "It should be US centric and skewed to services. This will result in $2.0B+ in savings but much will be reinvested."
He also met with Dell at CES and wrote that Dell expects the first half of 2013 to "remain challenging for PCs but anticipates better trends in H2."
And he said Dell is not abandoning the consumer market, as some observers have speculated. "Dell views consumer business as a core asset and has no intention to divest it," Daryanani wrote.
The "rationale" for staying with consumer products is "scale in procurement...door opener for enterprise deals especially in emerging markets, and...key if the 'bring-your-own-device' trend sustains."