I'm not an HP or Compaq employee and really do not know if the Compaq merger is a good idea or not. All I know is that I bought an HP laser printer over 10 years ago and it's still running like a champ today. That and other experiences convinces me that HP makes the best laser printer. Whatever happens, I hope that type of quality continues.
Hewlett-Packard's print engines (the part that makes the paper move, and prints the image) are made by Canon. Hewlett-Packard did, however, developed the formatter board thus creating the first laser printer from a Canon copier (you can thank Dick Hackborn).
No offense to SEBL shareholders, but if shares in that company can go from $24 to $31 in two days on "rumors" that its quarter will be strong, then HP can easily pop $5 if/when CF quits and the merger is called off. Investors are buying heavily any tech stock on good news, and CF's departure would be very good news.
Two-thirds of HP's profits come from their lucrative printer and imaging business... HP dominates this market -- they sell 2 printers for every printer that each competitor sells. In addition, for every printer they sell, you can imagine how many printer cartridges are also sold over the lifetime of the printer. The margins on the cartridges are substantial. Merging/acquiring another PC business (eg, compaq) will undoubtedly dilute these profits and reduce overall shareholder value because of the low profit margins in the PC business. Looking at the bottomline, a HP-CPQ merger doesn't make that much sense for shareholders. Big isn't necessarily better.
I have calculators from the 70's that still do what I need. I have worked with the early 70's designed and produced MPE in the year 2000 and it still did the current online and batch processing interconnected with the Internet required to run a very very large corporation. There are medical and scientific measurement devices all over the world still running today that were produced in the 70's.
HP has great products....buy HP.
I don't work for HP and I'm a stock owner who wants to get on with with merging or not merging, just not wasting any more time for the competition.
Basically true. HP HAD great products. HP brand used to equate to QUALITY, RELIABILITY, and great customer service. Laser printers, calculators, test equipment...great products that garnered loyal customers.
Unfortunately, most of these are not true anymore. Even previous to this merger turmoil, many talents have left the company.
HP is like a once great champ that's been defeated and probably will never attain its championship form. Only thing it can do is look at old films and be in awe of its past achievements. After all, they are not going to try and go for the calculator market, nor the test equipment market, nor even focus entirely on the laser printer market again are they? Cannot live in the past. The future is very cloudy for this old contender.