The news that HP is set to sell or spin-off its consumer electronics division has rocked the industry, fueling an onslaught of speculation and commentary. But for The VAR Guy, here’s one question comes to mind: Will Microsoft be able to work as closely with Hewlett-Packard’s PC division as the HP seeks to either spin-off the PC business or sell it to a third-party?
The VAR Guy sees it like this: Anytime a new version of Windows comes out, consumer PC manufacturers are the go-to channel to ensure early adoption and proliferation of the operating system. HP has been one of those key players, but with HP trying to sell off its PC division, it means Microsoft will need to work hard to keep HP’s R&D efforts focused on tight integration and new developments for Windows 8.
Yes, The VAR Guy knows there is Dell/Alienware, Acer, Lenovo, Asus and a handful of other computer manufacturers, but HP has long been synonymous with the PC, and an incredibly close partner for previous Windows releases.
So here are two scenarios The VAR Guy sees playing out:
- Apple gains larger market share: If HP’s PC business is spun off or sold, the transition stage for the HP PC operation could slow down HP’s PC sales — as Apple sales continue to accelerate.
- A new company fills the void: Lenovo is a company The VAR Guy has come to know and love for a few reasons. R&D is one of them. Lenovo has consistently shown it cares about creating a portfolio of devices that are as close as you can get to a vertically integrated Microsoft Windows PC solution. With stylish laptop designs in addition to a Microsoft partnerships in building the Lenovo Enhanced Experience for faster drivers and boot times, Lenovo could see the opportunity to take on the PC space bigger, faster and harder. Lenovo could be the perfect launch partner for Microsoft’s Windows 8, especially with its plethora of touch-related consumer products and upcoming tablets that would fit perfectly with Windows 8′s touch-centric design.
The VAR Guy thinks Microsoft was already thinking about deep partnerships with PC manufacturers on Windows 8 (especially with the promise of ARM-based Windows machines). But with HP’s PC business up for sale, the old Microsoft-HP relationship may not move as quick as it did in the 1990s — opening the door for Microsoft to potentially get even cozier with other PC makers.
It may be too early to say, but our resident blogger will keep track of Windows 8′s development as the year rolls.
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IBM/Lenovo are definite contenders. A big part of HP’s downfall in this market was the rapid decline in their customer service; they went from A+ to D- in a ten-year period. I owned predominitely HP PCs and printers for twenty years. Last year I made the move to ThinkPad. Couldn’t be happier.
Lenovo makes rock solid laptops. I also had a sneak peak at a pending Lenovo tablet. The number one thing Microsoft needs to do is make sure the machines start up VERY fast. I have been a Windows PC guy for 20 years. I broke down and bought an iPad a few weeks ago. It is an amazing device. Microsoft and any partners they work with for ARM and SOAC have their work cut out for them. I’ll give ‘em time and a try, but will the rest of the world wait?
I have used dell and hp laptops over the years. I had a lot of problems with my dell. I continue to use hp. The customer service I have received through HP has been great! Microsoft should not have a problem with them.
Look for more consolidation in the PC business. Lenovo reported just 2% net profit margin in its last quarter, and counted itself doing well. But where is there room for innovation and investment in such a cut-throat market? Windows machines have become nothing more than a commodity.
I wouldn’t be surprised if Dell were the next vendor to report problems with its PC business.
Chalene@1: Can you clarify for The VAR Guy — do you mean IBM and Lenovo are “contenders’ to bid on HP’s PC business? (The VAR Guy would respectfully disagree).
Jeff@2: The VAR Guy is very intrigued to see the first Lenovo tablets. But Apple’s App Store could be tough to compete against…
Kevin C@3: The bigger question — can HP’s PC employees stay focused through this process?
Lawrence@4: Generally speaking, The VAR Guy agrees that more PC consolidation is coming. Dell has already conceded that it’s pushing hard into storage, networking and services to offset slim desktop margins…
Also, neither Dell nor HP have specifically said their are “problems” with their specific PC businesses. But the margin issues and tablet issues are undeniable.
-TVG