HP to become the new "blue giant"

In 1960s, when HP technical personnel to develop the first computer, co-founder of Hewlett-Packard Co David Packard says it supports the product to the market, but did not want to give it a product called computer. This consideration is mainly to avoid the attention of IBM, which was dominant in the dawn of the age.

Now, the science and technology interface is facing the birth of a new giant, which is Hewlett-Packard Co. Last quarter, HP's sales revenue higher than IBM. Analysts predict that in 2006, HP's annual sales revenue will be higher than IBM for the first time, HP's annual revenue of $91 billion, while IBM is $90 billion 500 million. HP's lead is simple: last year, IBM sold $11 billion worth of Lenovo's PC business. More importantly, the two companies have adopted a different development strategy. HP continues to attack the consumer market, while IBM is focused on the corporate market. HP hopes to grow faster than IBM in the next few years. Since the two companies are using blue as the logo, so the industry will call the birth of a new blue giant.

HP's lead also shows that the computer industry is undergoing fundamental changes, which is a problem faced by technology companies. Now, the computer industry began to sell products to the company, this year the market hardware, software and services, including revenue reached $1 trillion, consumer sales currently account for only 10% of the market. However, the technology is now ubiquitous, from home computers to mobile phones are growing faster than the mature business. Gartner, a market research firm, said Internet enabled mobile phone sales are expected to grow by 15.4% this year, while the number of Unix servers used by businesses is down by%.

Therefore, a large number of technology companies began to expand the consumer market. CISCO systems, Inc., is now selling home networking products, while DELL is starting to sell it. This is accompanied by the emergence of the problem, for the vast majority of successful enterprises, the enterprise market sales have brought huge profits, the order of software profit reached 30%. Consumer technology products? Profits may be meager. Analysts said the game machine manufacturers in the two years after the launch of the product, are at a loss. The problem they face is how to enter the fast-growing consumer market, while also making a good profit return. Annex Research organization analyst Bob Djurdjevic said: these companies are accustomed to the shareholders of the rich returns, they should learn how to achieve profitability. "

At least for now, HP seems to have worked out a plan. HP accounted for 41% of the market share of the printer, while HP is still in the ink cartridges and other village market advantage. In the last century, HP printing sector contributed more than half of Hewlett-Packard Co's $1 billion 700 million revenue. To occupy the consumer technology market, the key is to achieve economies of scale, the establishment of platform sales value-added products. For example, HP has printer products, while Apple has iPod and iTunes.

IBM's strategy is completely different, Bill and Zeitler in charge of computer chip Department of the IBM company said: "we are a business oriented IT company, this is our advantage in this market, other companies do not pay much attention. "The problem with IBM is to convince investors that they can make business services grow.