This Chart Is Why A Lot Of People Think HP Is Screwed

Toner News Mobile Forums Latest Industry News This Chart Is Why A Lot Of People Think HP Is Screwed

Date: Thursday November 29, 2012 08:34:35 am
Viewing 1 post (of 1 total)
  • Author
    Posts

  • Anonymous
    Inactive

    This Chart Is Why A Lot Of People Think HP Is Totally Screwed

     

    This Chart Is Why A Lot Of People Think HP Is Totally Screwed

    Read more: http://www.businessinsider.com/hps-rd-spending-2012-11#ixzz2Dd7a5S8yThis Chart Is Why A Lot Of People Think HP Is Totally Screwed

    This week, we ran a chart showing HP’s crashing stock price since Mark Hurd was forced out of the company.

    After we published the chart, a friend emailed to say, "Hurd destroyed the company. Gutted R&D, which was the cardinal sin. It was always an engineer’s company. He financialized it. And in so doing, set in motion the wheels of doom."

    From 2010, here’s a look at how R&D as a percentage of revenue fell under Hurd’s watch.

    chart of the day, hp r&d expenses, 2005-2010

    But, is the R&D budget really why HP is hosed? Probably not. Look at this chart, also from 2010:

    But, is the R&D budget really why HP is hosed? Probably not. Look at this chart, also from 2010:

    Read more: http://www.businessinsider.com/hps-rd-spending-2012-11#ixzz2Dd7DAs8f

    But, is the R&D budget really why HP is hosed? Probably not. Look at this chart, also from 2010:

    Anything jump out in that chart?

    Apple spent less on R&D than HP, Google, and Microsoft in 2009. No one is going to accuse Apple of not producing great innovative products, despite a small R&D budget.

    When Hurd was pushed out, an ex-HP engineer told Joe Nocera slashes in the R&D department was, "why H.P. had no response to the iPad." Apple managed to make the iPad while spending less on R&D, so we’re not sure that totally adds up.

    It’s not how much you spend on R&D, it’s what comes of it.

    As for the charge that Hurd "financialized" HP, well, that may be true. But, he seemed to be at least somewhat in control of where the company was going. The two CEOs since Hurd have no clue, it seems, about what to do with HP.

    Read more: http://www.businessinsider.com/hps-rd-spending-2012-11#ixzz2Dd6y3iVx

    chart of the day, r&d for tech companies, 2009

    Anything jump out in that chart?

    Apple spent less on R&D than HP, Google, and Microsoft in 2009. No one is going to accuse Apple of not producing great innovative products, despite a small R&D budget.

    When Hurd was pushed out, an ex-HP engineer told Joe Nocera slashes in the R&D department was, "why H.P. had no response to the iPad." Apple managed to make the iPad while spending less on R&D, so we’re not sure that totally adds up.

    It’s not how much you spend on R&D, it’s what comes of it.

    As for the charge that Hurd "financialized" HP, well, that may be true. But, he seemed to be at least somewhat in control of where the company was going. The two CEOs since Hurd have no clue, it seems, about what to do with HP.

Viewing 1 post (of 1 total)
  • You must be logged in to reply to this topic.