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(Mercury News) Fail Hewlett-Packard profits down 91%. Company tries desperately to reboot earnings, investors look to cache in their chips   (mercurynews.com) divider line 37
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1343 clicks; posted to Business » on 22 Nov 2011 at 11:54 AM   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»   |    Get this fabulous T-Shirt and impress the methane out of your friends! shirt it!



37 Comments   (+0 »)
   
 
2011-11-22 08:39:19 AM
HP used to be a trusted name in printers. They still do a few things well (like their network gear) but their home printers are utter crap.

They're garbage, through and through. Their ink is exorbitantly expensive, and they try to prevent you from refilling your own cartridges by using chips on them that count how many times you use them. When the chip thinks you should be out of ink (regardless of how much is actually left inside) it will shut you down and force you to swap it out. It's the same deal with toner and drums in their laser printers.

Their drivers are abysmal, and incredibly wasteful of resources. It comes with so much bundled crap that the downloads are quite regularly 150-250 megabytes. One type of printer we had took 30 minutes to configure itself, and another 30 minutes to install the driver! Ridiculous!

I won't touch their printers anymore, after all the trouble we've had at work with them. I hope that division of their company rots in hell.
 
2011-11-22 08:50:14 AM
BurnShrike: HP used to be a trusted name in printers. They still do a few things well (like their network gear) but their home printers are utter crap.

They're garbage, through and through. Their ink is exorbitantly expensive, and they try to prevent you from refilling your own cartridges by using chips on them that count how many times you use them. When the chip thinks you should be out of ink (regardless of how much is actually left inside) it will shut you down and force you to swap it out. It's the same deal with toner and drums in their laser printers.

Their drivers are abysmal, and incredibly wasteful of resources. It comes with so much bundled crap that the downloads are quite regularly 150-250 megabytes. One type of printer we had took 30 minutes to configure itself, and another 30 minutes to install the driver! Ridiculous!

I won't touch their printers anymore, after all the trouble we've had at work with them. I hope that division of their company rots in hell.


So much this. After we burned through our last two HP printers, I switched to Brother and I'm never looking back.
 
2011-11-22 09:59:48 AM
with profits tanking and revenue down, do you think their CEO will still get his bonus check this year?
 
2011-11-22 10:05:14 AM
Weaver95: with profits tanking and revenue down, do you think their CEO will still get his bonus check this year?

Without a doubt. I worked for this company for 10 years. Consumer Products Division is Chinese garbage. They've probably trashed the server division by now.
 
2011-11-22 10:15:56 AM
if they could build a printer that actually works instead of stalling out trying to read it's own drivers, people might actually buy one.
 
2011-11-22 11:19:25 AM
"When you make shiatty products, people don't generally want to buy them. " - Ric Romero
 
2011-11-22 12:01:48 PM
Been sad watching them fall over the last 15 years.
 
2011-11-22 12:05:06 PM
they've had shiat profits for a while now. they just stopped hiding them with clever accounting tricks.
 
2011-11-22 12:26:02 PM
I'm totally guessing and DNRTFA, but I suppose that they just wrote off a big hit from the 3 billion spent on WebOS development and that isn't helping.
 
2011-11-22 12:31:06 PM
Weaver95: with profits tanking and revenue down, do you think their CEO will still get his bonus check this year?

If he does, it'll be in the form of a golden parachute. Leo Apotheker got fired a few months ago.

That said, their revenues were only down 3%. Most of the drop in profit was due to some huge aquisitions the company made.
 
2011-11-22 12:32:51 PM
Weaver95: with profits tanking and revenue down, do you think their CEO will still get his bonus check this year?

He won't.
 
2011-11-22 01:50:51 PM
HP has been spiraling for a while now. Their printers are crap for the issues mentioned above, then they said they were getting out of the PC business, then of course backtracked, but any IT department will have second thoughts before getting gear from a company that could sell off the business at any moment, and they seem to be going through CEOs like klenex at a porn convention. Each with a different idea of where the company is headed.
 
2011-11-22 01:52:12 PM
CSB:

I used to do tech support for HP printers - everything from your on-desk lasers to your 9500s (10s of thousands of dollars).

Not bad, but we were severely under trained. If you did find something out, something genuinely flawed, and a fix for it, HP would ignore you. We have VPN access to HP systems, looked like HP employees, but we were not.

On such printer, the 2800 series, was just atrocious. The software could take 3 hours to install, and the just fail. The HP-approved approach was uninstall and try again. And again, and again. It would eventually work sadly. I did some snooping and found ways to cut down the uninstall to about 15 mins instead of an hour, but it was heavily opposed.

Most of the people working there had absolutely no idea what they were doing. Fresh meat weekly off the streets hired on for $12 an hour.

And then they outsourced a bulk of the work above us to Costa Rica. We would get customers, fairly important ones, with a printer that was dead. We'd swap out the power supply, main board, etc. - it still wouldn't turn on. To approve replacing these $15,000 machines, we'd need a sign-of from the "engineers". We'd send off a report, something fairly concise: machine doesn't turn on. 5 other models all work fine in the same outlet. Swap in new [parts listed]. No sign of power." The responses would be "you did not print engine test page. cannot replace without engine test print". Try to explain to them that it doesn't do that until it turns on? Good luck.
 
2011-11-22 01:58:00 PM
BurnShrike: HP used to be a trusted name in printers. They still do a few things well (like their network gear) but their home printers are utter crap.

They're garbage, through and through. Their ink is exorbitantly expensive, and they try to prevent you from refilling your own cartridges by using chips on them that count how many times you use them. When the chip thinks you should be out of ink (regardless of how much is actually left inside) it will shut you down and force you to swap it out. It's the same deal with toner and drums in their laser printers.

Their drivers are abysmal, and incredibly wasteful of resources. It comes with so much bundled crap that the downloads are quite regularly 150-250 megabytes. One type of printer we had took 30 minutes to configure itself, and another 30 minutes to install the driver! Ridiculous!

I won't touch their printers anymore, after all the trouble we've had at work with them. I hope that division of their company rots in hell.


Well, full disclosure first - I'm an employee (through acquisition) of HP - but I recently purchased an HP printer for the first time in ages... I went with the HP Photosmart C309a, since it printed to CD/DVDs and was replacing an Epson RX595 which seemed incapable of printing decently after it hit a certain number of pages (strange that...). At any rate, the printer drivers are pretty much built into Windows (and inconsequential) and everything has worked smoothly. Unlike the Epson printers, I can go a week between printing and not have issues with the ink, either.

I mainly bought it with a "wait and see" attitude. It was nice that I could get ink (since I use it for work, mostly) for free, but this has worked out smoother than any printer purchase I've made in the past decade. About the only thing I'd like to see added as a feature is hands-free duplex printing, like I had on my ancient HP printer (I want to say it was a 712C?).

The profit issue is simple enough anyway... Leo killed the Touchpad when it didn't fit his plans using unrealistic sales goals and an incredibly short deadline, and the firesale at huge chunks of the operating budget for the last quarter. Likewise, his announcement of spinning of PSG caused quite a few problems... linked with a drop in stockholder confidence and share prices, HP was operating under a tighter cashflow restriction, meaning it couldn't negotiate better supply prices, either during that time frame.

HP still needs another quarter to recover, but so far, after firing Leo, they are making most of the right moves.

I still expect to see them move the Touchpad hardware to the Windows 8 realm and marketed through cellular providers. Selling 3G-less Tablets at Apple prices wasn't a plan destined for success... though I think webOS is still viable, Leo pretty much turned it into damaged goods with his idiocy. Hopefully, HP can salvage Palm and at least spin it off to somebody and see a return, if they've completely backed off from the Tablet arena.
 
2011-11-22 02:15:27 PM
Thank god their server blade line (formerly Compaq) is bullet-proof rock-solid stable.

I've been a Proliant guy for 15 years and can't remember a failed component other than predictable consumables like hard drives or RAID cache batteries.

Fully hands-off lights-out datacenter management; fully remote remote consoles, BIOS/firmware updates, blah blah blah. But OpenView is crap. Use Nagios and Solarwinds instead.

What's will hiring failed shrews for CEOs? After Meg's craptastic bid for CA Governator ^ who would hire her?
 
2011-11-22 02:25:22 PM
Yet when I plug them into a linux computer they "just work"

BOggling
 
2011-11-22 02:32:10 PM
ugh

HP is total and utter crap.

Somebody mentioned the printers, that's just the tip of the iceberg.

Have you used their laptops? They make the most disposable laptops in the world. I'd rather buy a laptop from a Chinese manufacturer named "pin pin happy time go lucky yes" than an HP laptop.

Have had 5 HP laptops just completely DIE in a span of 3 years, different models and I have to fight HP over their customer service crap to get them replaced.

Avoid like the plague.

/Anecdotal evidence!!!!
//csb
 
2011-11-22 02:44:36 PM
maq0r: ugh

HP is total and utter crap.

Somebody mentioned the printers, that's just the tip of the iceberg.

Have you used their laptops? They make the most disposable laptops in the world. I'd rather buy a laptop from a Chinese manufacturer named "pin pin happy time go lucky yes" than an HP laptop.

Have had 5 HP laptops just completely DIE in a span of 3 years, different models and I have to fight HP over their customer service crap to get them replaced.

Avoid like the plague.

/Anecdotal evidence!!!!
//csb


Counter anecdotal data:

All laptops suck. Every OEM has their craptastic line of products over time.

The HP Elitebook line has been is pretty stable for us en mass and the drivers aren't too esoteric. Contrast that with trying to spin up Stinkpads with their unique driver installs and updates.
 
2011-11-22 02:58:32 PM
After seeing the TouchPad sell like hotcakes at a lower pricepoint they should have kept it at that pricepoint as a loss leader and pulled an Apple by pulling a percentage of the revenue off the WebOS store. Saturate the market with your product and support the developers and the money(and karma) will come back to you
 
2011-11-22 03:44:08 PM
Weaver95: with profits tanking and revenue down, do you think their CEO will still get his bonus check this year?

They fired Leo and brought in Meg Whitman. I don't think Leo left with anything sizable.

and I know you know who Leo is ;)
 
2011-11-22 03:45:54 PM
Is the garage in Palo Alto still available?
 
2011-11-22 04:05:03 PM
I hope the ghost of webOS haunts them for years. Bastards.
 
2011-11-22 04:22:56 PM
wow, so 3% of revenue = 91% profits? that is SOME small margins right there. i knew they were slim, but wow.
 
2011-11-22 04:25:22 PM
my only experience with HP has been consumer products (printers, computers, etc.) They have all been offensively bad for about 10 years for me. i quit buying from them 5 years ago and will never go back.

/maybe their other services are fine
//might never know
 
2011-11-22 04:53:27 PM
I love my HP Touchpad.

WebOS is pretty cool.
 
2011-11-22 05:32:10 PM
The Flexecutioner: wow, so 3% of revenue = 91% profits? that is SOME small margins right there. i knew they were slim, but wow

Not the whole story, you have to look at the other side of the ledger:

Revenue - expenditures = profit.

Their expenditures were way, way higher, as they spent a couple billion on acquisitions of other companies.

The Flexecutioner: my only experience with HP has been consumer products (printers, computers, etc.) They have all been offensively bad for about 10 years for me. i quit buying from them 5 years ago and will never go back.

I used to agree with you. Then last year I bought an HP Envy laptop. It's flat-out the best PC laptop out there.
cdn.ubergizmo.com
 
2011-11-22 06:15:05 PM
MrSteve007: The Flexecutioner: wow, so 3% of revenue = 91% profits? that is SOME small margins right there. i knew they were slim, but wow

Not the whole story, you have to look at the other side of the ledger:

Revenue - expenditures = profit.

Their expenditures were way, way higher, as they spent a couple billion on acquisitions of other companies.

The Flexecutioner: my only experience with HP has been consumer products (printers, computers, etc.) They have all been offensively bad for about 10 years for me. i quit buying from them 5 years ago and will never go back.

I used to agree with you. Then last year I bought an HP Envy laptop. It's flat-out the best PC laptop out there.
[cdn.ubergizmo.com image 468x354]


i was just being snarky with the revenue/costs/profits thing. and HPs bloatware ruined it mostly for me with their peripherals. im sure the laptop is good, but also paying premiums on name-association for things like Beats by Dre annoy me too. I've always rejected certain name brand premiums mostly on principle and less on actual quality. Beats, while good and all, are just too expensive for me.

/built my last comp from scratch
//bought my previous 3 custom built from ibuypower
 
2011-11-22 06:46:52 PM
I have a burning hate for HP Printers and the drivers that come with them. But, my company still insists on buying them year after year. And year after year I get to fix/replace them.

/4000+ employees
//All have HP All In Ones
///Yeah I Mad
 
2011-11-22 07:43:03 PM
Charlie Freak: So much this. After we burned through our last two HP printers, I switched to Brother and I'm never looking back.

Also bought a Brother - its now 9 months old and working great. With is 3 months longer than my last HP printer lasted.

/when I hit print - it prints!
//unlike the HP - which you would have to take bets on whether the damn thing would jam or not
 
2011-11-22 07:45:03 PM
MrSteve007: Their expenditures were way, way higher, as they spent a couple billion on acquisitions of other companies.

Some of which they just shut down after buying. Great leadership there.
 
2011-11-22 09:20:28 PM
bravian: Also bought a Brother - its now 9 months old and working great. With is 3 months longer than my last HP printer lasted.

/when I hit print - it prints!
//unlike the HP - which you would have to take bets on whether the damn thing would jam or not


And it costs a grand total of $10 for a multipack of cartridges.

The official ones can also be forced to print from by using a sharpie on the glass in front of the sensor.
 
2011-11-22 09:30:48 PM
Faps_in_the_kitchen: I have a burning hate for HP Printers and the drivers that come with them. But, my company still insists on buying them year after year. And year after year I get to fix/replace them.

/4000+ employees
//All have HP All In Ones
///Yeah I Mad


If you stay close to the workgroup printers they have simple drivers suitable for print server installation.
 
2011-11-22 10:15:20 PM
Manufacturing garbage and expecting people to keep buying it is biting Hewlett-Packard-Bell in the ass.
 
2011-11-22 10:19:50 PM
Stupid leaders. Glad they kicked them out. A little late though.
 
2011-11-22 11:32:01 PM
The Flexecutioner: i was just being snarky with the revenue/costs/profits thing. and HPs bloatware ruined it mostly for me with their peripherals. im sure the laptop is good, but also paying premiums on name-association for things like Beats by Dre annoy me too. I've always rejected certain name brand premiums mostly on principle and less on actual quality. Beats, while good and all, are just too expensive for me.

I bought one as part of their 'black friday' deals from last year. Considering it was $500 off, with free shipping - I didn't pay much of a premium.

/wonder if they'll have the same deal this year
//wife got it as part of the divorce
 
2011-11-23 12:15:03 AM
The Flexecutioner:
paying premiums on name-association for things like Beats by Dre annoy me too. I've always rejected certain name brand premiums mostly on principle and less on actual quality. Beats, while good and all, are just too expensive for me.

/built my last comp from scratch
//bought my previous 3 custom built from ibuypower


I assure you, Dr. Dre worked long and hard in his Science Lab to bring you tbose beats. He is a doctor, of course.

/a doctor of beats.
 
2011-11-23 10:36:42 AM
MrSteve007: I used to agree with you. Then last year I bought an HP Envy laptop. It's flat-out the best PC laptop out there.
[cdn.ubergizmo.com image 468x354]


If they can turn it around, HP still has a chance of being a very successful company. The brand that has been built over the last 30 years still stand for something, even if people have negative views of their current product line.

The best way to turn their business around is to stop racing Dell to the bottom of the cheapest bargain bin computers, and set their sights competing with Apple. Apple has consistently shown that a quality product will attract buyers if the sales department can STFU and let the marketing department simply connect customers with quality products.

A easy way to separate their old products from the new would be to:

1. Not have junkware in their consumer or business products. This means having products that will AT LEAST reasonably last for 4 years without the capacitors burning out because they wanted to save $3 a unit in production costs. That means designing printer drivers keeping in mind that people don't want to sit for an hour waiting for their printer to 'configure' itself.

(Yes I realize the engineering difficulties of programming a driver that will work with every hardware configuration out there. But does the customer really need to download/use a driver that has config files for a configuration that they're not using?)

2. Redesign the look and feel of their products to more accurately reflect the design and ergonomic taste of the public. Make it simple and make it cool. (That laptop pic in the quoted post actually looks attractive).

3. SIMPLIFY the product line. For each market segment HP wants to target, they should have 2, maybe 3 base models (cheap/expensive/uber) with customization options from there. Currently there seems to be a plethora of options that customers get lost choosing from (3 different levels of consumer products with 4-7 options for each "level" of computing that a customer wants to choose from).

4. Push their software partners (ie Microsoft) to produce products that show the hardware's useability. Take an active role in suggesting improvements.

Those choices would make the company healthier and more competitive.


/I think I'd make a good CEO
 
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