HP exits the Asian digital camera market

It'd probably be a little unfair to describe HP as being in retreat, but the news hasn't been so encouraging lately: they're laying off 10% of their workforce, they've quit selling their HP-branded version of the iPod, and now just this morning they've announced that they're withdrawing from the Asian digital camera market (which means you won't be able to buy Gwen Stefani's Harajuku-themed Photosmart R607 in Harajuku anymore). HP's actually not doing so bad in the US, in the first quarter of this year they sold more digital cameras than either Fujifilm or Nikon, but the Asian market is about as competitive as it gets and without a brand name that people instantly associate with photography it must have been a little tough getting a leg up on all of the ultra low-priced options that are out there. Usually this sort of thing is a prelude to a company exiting a business entirely, but HP swears that they're not giving up on digital cameras and and that sales have been good in North America, Latin America, and Europe.

[Andy @ Dec 19th 2005 12:18AM]

Little typo in your header Peter, threw me off a bit!

On-topic, I like how HP seems to be turning around with their new CEO. The iPod thing never made sense and the camera thing was basically a waste of time. Hopefully they can allocate that time to something more productive; HP used to be a decent company.

[TZK @ Dec 19th 2005 12:18AM]

They need to exit the US market too, because they suck.

First the hPod, now cameras - whats next? :)

[Jeff @ Dec 19th 2005 12:18AM]

I'd call what's been happening at H-P more of a "refocusing" than "retreat". Carly's tenure was criticized pretty heavily for putting the company's feet in too many ponds... the Compaq deal can't be undone at this point but the company can still downsize and pull back in regions and industries where it lacks experience or marketing muscle. These are all things that should have happened under Carly Fiorina but instead, she went the opposite way and it hurt the company.

I don't think H-P should be in the business of digital cameras to begin with, but I guess they just couldn't resist such a potentially lucrative market. I guess they're doing well enough in markets besides Asia, but I'm not sure if that's going to last once the saturation point is reached (and that's coming up fast).

[Barry @ Dec 19th 2005 12:18AM]

Yes, bad times at HP. I thought it wildly ironic that while HP's tagline is 'Invent', they were hawking Apple's iPod instead of making a better MP3 player. Aside from their bread-and-butter printer business, are they really anything more than a logo anymore?

I'd be pretty embarassed to work for HP right now considering their history. Can anyone tell me anything truly innovative (and not 'me too!') that's come out of the company since the Compaq merger?

[SHOTT3R @ Dec 19th 2005 12:18AM]

Man all this stuff happening at HP is BANANAS!

B-A-..uh...A-N....dammit!

[Ty @ Dec 19th 2005 12:18AM]

Carly Fiorina did a good job into introducing HP into many homes. They are more of a brand now then they used to be. The new HP wants to revert back to selling servers and such. In the Asian market they didn't stand a chance to begin with. They are another company that needs to start innovating again.

[Anne @ Dec 19th 2005 12:18AM]

One company can't be everything to everyone; I never saw the point of HP being in the digital camera market. The looks of the cameras didn't strike me as very comfortable or user-friendly, and the market is already dominated by brands that people associate with quality photography (e.g., Canon, Nikon).

By contrast, I've been pleased with my HP pc. I'm reminded of the saying about how it makes more sense to play to your strengths than minimize your weaknesses. Of course, every company needs to do the latter as well, but the general idea still applies. With new leadership, HP could turn things around.

[Super_C @ Dec 19th 2005 12:18AM]

The reason they'd want to penetrate the camera market is to further penetrate the printer market. HP's survival is based on printer ink.

[Anne @ Dec 19th 2005 12:18AM]

That sounds plausible, Super_C, but good riddance to the Gwen Stefani camera. Until she learns to sing from her chest instead of through her nose, I'll wish a pox on any company that does a product tie-in with her. >:-)