Global IT industry integration has reached its peak

Another super hardware predator surrendered to Apple?

Just a week ago, Motorola had just announced the sale of its mobile phone business. The global PC chief suddenly announced the decision to withdraw from the PC business on Friday. Affected by the peeling of PC business news, HP's share price fell 20% last Friday, close to the lowest point in six years, also evaporated the company's market value of 12 billion US dollars.

At the financial report meeting on Friday, HP suddenly announced three important decisions: the spin-off of the PC business, closing the WebOS hardware business, and $10.2 billion in the acquisition of Autonomy, the UK's second-largest software vendor. This means that HP will focus on the software field in the future.

After the news was announced, the global science and technology community exclaimed: Even the old technology company with 72 years of history has to undergo major reforms, turning the company’s business focus to the software industry and enterprise users, reflecting that the traditional PC industry is rapidly declining. Simple PC makers and pure handset makers have been unable to survive independently.

Coupled with Google's announcement of the acquisition of Motorola a week ago, many people believe that HP has become another company surrendering to Apple. In just a few years, Apple has promoted the integration of mobile phone and PC industry by relying on iPAD, and Hewlett-Packard only launched their first tablet PC less than two months ago, and has been defeated in the transformation battle. As PC gross margins continue to decrease, traditional manufacturers such as Hewlett-Packard have struggled to stay in the PC field.

The chain reaction The next sale of PC business is Dell?

From a performance point of view, although HP is still the world's largest personal computer manufacturer with a market share of nearly 18%, HP's PC business has experienced consecutive year-on-year declines in revenue. This quarter decreased by 3% year-on-year.

Dell, the world’s second-largest PC maker, reported earlier this week that its operating profit margin for consumer PC business was only 2.5%.

The market outlook is also not optimistic. Global data agency IDC said last month that global PC shipments in the second quarter increased by 2.6% year-on-year, which was lower than the company's previous forecast of 2.9%.

In fact, after first realizing the long-term difficulties of the PC industry, IBM sold its PC business to China's Lenovo Group in 2005. Earlier, other U.S. PC makers including Compaq, Gateway, and Packard Bell were either acquired or gradually withdrawn from the market.

People are also guessing: Who will be the next person to sell PC business? Just last week, Dell’s chief financial officer Brian Gladden also said that the company has stopped producing and selling some consumer electronics products, because the consumer business is weaker than expected.

Who is the most likely to be the buyer of HP?

Hewlett-Packard's annual PC shipments are about 64 million units, and its personal systems department has annual revenues of 41 billion US dollars. If the company sells the business, who will take the order? Foreign analysts pointed out that China's Lenovo and South Korea’s Samsung may become the largest potential bidders for HP’s PC business.

Foreign analysts believe that the post-separation PC business will no longer be able to compete with Acer and other low-cost computer makers because of its advantages in sales channels and component procurement. Therefore, existing PC manufacturers are most likely to become buyers.

If Samsung acquires HP’s PC business, it will continue to consolidate its position as the largest electronics manufacturer after the acquisition based on revenue. Lenovo is also very likely to accept orders. From the acquisition of IBMPC, Lenovo also acquired Japanese NEC and German Medion this year. Lenovo Group has also said that it does not rule out acquisition opportunities. However, Lenovo Group spokesman Chen Danqing said that he could not comment on HP.

However, if there are no new PC makers in the market, or HP is not able to sell the PC business to another manufacturer, other companies will increase production to fill gaps left by HP, such as Asus, Samsung, and Lenovo.

HP abandoned the PC to see the three major trends in the global IT industry:

There will be more "merger and unbundle." Within a week, the global technology industry experienced two drastic changes: Motorola sold the mobile phone business to Google, and HP announced that it would sell PC business. The event reflects the fact that the global technology industry is undergoing dramatic technology. Change and industry transfer.

At this point, in addition to Dell, the leading US IT companies have all given up the manufacturing of personal consumer products, and PC manufacturing will gradually shift to Asia. For example, Lenovo took IBM's personal computer business 6 years ago. In the future, Samsung is the company most likely to eat HP's PC business. The emerging countries market still has a strong growth in the personal consumer market.

Because of the above changes, more mergers, splits, and failures will occur in the technology industry in the future.

The changes in the PC market are mainly reflected in three aspects:

First, companies such as Hewlett-Packard failed to grasp the transition from the PC era to the smartphone and tablet era.

Some people attributed HP's withdrawal from the PC market to saturation or shrinking consumption. However, from the data, in the second quarter of this year, the global consumer spending for the purchase of desktops and notebooks increased by 16% year-on-year, and most of the market share was stolen by tablets, especially Apple. Apple sold a total of 13.6 million mobile PCs in the second quarter, while HP sold only 9.7 million. In the first half of this year, Apple’s iPad revenue was 30% more than Dell's consumer PCs.

Second, traditional manufacturers such as HP are losing control of the industry chain.

The wave of industrial consolidation in the global IT industry has reached a peak, and any company alone cannot control the pattern.

Companies such as Hewlett-Packard and Motorola have also tried to launch their own operating systems to strengthen their ability to control the industrial chain, and ultimately they are not satisfactory. Because there is no operating system for the light, the era of mobile Internet still lies in the battle for positions such as user portals and key applications.

Just as Google has successfully acquired Motorola Mobility, the two best-selling Android makers, Samsung and HTC, will immediately become uneasy because they have no control over the industry chain. Integrating Motorola's business, Google also like Apple, complete control of hardware, software, and their platform-related services, Samsung and HTC alone will only become increasingly marginalized.

Third, the PC industry has not completely lost its way. However, investment and consumption in this market are shifting from a saturated developed country market to an emerging market, just as Legend Group, which also operates a traditional PC business, still maintains strong growth.

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