HP + Gateway?
posted February 12th 2005 12:35PM
By this point we all know that just because someone at an investment bank says it might happen doesn't mean it's going to, but CNET reports that Andrew Neff, an analyst with Bear Stearns, is floating a scenario in which HP could end up buying Gateway. It mainly involves whoever ends up running HP spinning off its PC business before any tie up, but with PC sales expected to slow this year, Neff seems to think it's the only way they'll be able to lower costs and keep up with the behemoth known as Dell. After the merger with Compaq you'd think that HP would be a little gunshy about yet another complicated acquisition, but no matter what happens, the reality on the ground is that PC business is getting rougher by the minute—and that's why when you think about it's not all that crazy that IBM sold off its PC division to Lenovo.
Why everybody is mentioning DELL ? They are more distributor than technology. Just get the same prices from the OEM manufacturer in China and an efficient distribution channel that's it to beat low tech high cheap plastic HELL. After a while big companies will realize that buying directly from the OEM factory might be cheaper then what is left for DELL ?
After reading the previous comment, I'm left with the feeling that the writer knows about as much about the hardware market as Ashley Simpson knows about brain surgery.
Carmi
http://writteninc.blogspot.com
nojetlag: Come on, is this your first time reading business news? Most of the time you might have to mention the leader of a certain category e.g., portable digital audio player with iPod.
Yes, there are many PC distributors. However, Dell controls most of the market share in the PC distribution business. (http://i.i.com.com/cnwk.1d/i/ne/p/charts/120704pc_barchart.gif)
I know this is off topic but what laptop is that in the picture?
Andrew Neff is a jackass. He "speculated" that synaptics would lose the ipod business and made SYNA stock drop 50%. I lost my shirt cuz of him. It wasn't even a fact, just a rumor. I hope he gets fired
I think HP wants to do this because then they'll have the technology from themselves, Gateway, as well as eMachienes, whom Gateway bought a couple months back.
Just my $.02.
I think HP needs to get themselves in order before even thinking of trying to acquire another company... Just this week their CEO was forced to resign and they're scavenging for a replacement..
With that in mind, I have a feeling this is a HUGE rumor being spread since HP doesn't have their management in order to make acquisition decisions yet..
i agree Hp is spending wau to much money