Wintel is falling apart: HP is the latest victim

“For nearly three decades, personal computer makers thrived by building their PCs around two key ingredients: Intel chips and Microsoft Windows,” David Goldman reports for CNNMoney.

MacDailyNews Take: Garbage.

“It’s an unprecedented success streak in the fast-changing tech market, where new technologies displace old ones in an eye blink,” Goldman reports. “But now, it looks like the “Wintel’ party is finally winding down.”

MacDailyNews Take: Blessedly.

“Hewlett-Packard’s announcement Thursday that it wants out of the PC business is a dramatic confirmation of some grim trends. PC sales have slowed to a crawl, growing just 2% worldwide last quarter and falling 6% in the United States,” Goldman reports. “The bad economy is a factor. But with the growth of Web-based applications, cloud storage, and tablets like the iPad, HP and others aren’t convinced that consumers will ever clamor for PCs again. ‘The tablet effect is real,’ HP CEO Leo Apotheker said Thursday on a conference call with analysts. ‘Consumers are changing how they use PCs.'”

Goldman reports, “Fully integrated hardware and software systems like Apple’s iPhone, iPad and Macintosh are becoming more sought-after in the technology industry. Apple does not break out its segment profits, but it is the eighth most-profitable company on the Fortune 500. That gave Apple — the third-largest and fastest-growing PC maker in the country — grounds to declare the beginning of the ‘post-PC’ era in March.”

“‘I think what we’re seeing — what HP’s move is really about — is the aftermath of the Wintel strategy, in which you give all the profits to Intel and Microsoft,’ said Carl Howe, analyst at Yankee Group,” Goldman reports. “‘Guess what? That model is driving them all out of business,’ Howe continued. ‘It has made companies like Apple look really smart. Wintel is falling apart.'”

Read more in the full article here.

MacDailyNews Take: When we wrote the following a lot of people laughed: As we have always said, even as many short-sightedly waved (and continue to wave) the white flag, the war is not over. And, yes, we shall prevail… No company is invincible. Not even Microsoft.MacDailyNews Take, January 10, 2005

Who’s laughing now?


Related article:
Apple doesn’t have an iPad strategy, they have a post-PC strategy – April 12, 2011

[Thanks to MacDailyNews Reader “Ellis D.” for the heads up.]


    1. Steve Jobs got it right a long time ago, first with the iPod, iPhone and now iPad. By contrast Apotheker basically clueless when it comes to matching anticipated consumer needs with functional, fully integrated devices.

    2. “Just goes to show you how far ahead Apple is in their thinking and vision.”

      And MDN, right in step with Apple.

      (That’s gotta be worth a brownie point!)

  1. Evidence we have entered a new POST PC ERA.

    “Wintel strategy, in which you give all the profits to Intel and Microsoft,’ said Carl Howe, analyst at Yankee Group,” Goldman reports. “‘Guess what? That model is driving them all out of business,’ Howe continued. ‘It has made companies like Apple look really smart. Wintel is falling apart.’””

    1. “It has made companies like Apple” – I am not an native English speaker, but doesn’t phrases like “tablets like the iPad” imply that there are some other companies like Apple and other profit-driving tablets?
      This is inaccurate me thinks, or have I missed something?

      1. In proper English, you should say “I think” NOT “me thinks”. Only morons with no education use “me thinks”. I really makes the person sound stupid when using “me thinks”. English just seems to be going down the toilet and it’s sad to watch.

        1. @I think NOT me thinks
          Friday, August 19, 2011 – 11:30 pm · Reply
          I believe that Melonsoda said he/she is not a native English speaker and nevertheless you comment, implied that Melonsoda was stupid uneducated moron.

          To begin with that comment makes you a shithead!

          Educated people occassionally use “me thinks” in mimicking an old English style!

          To write the comment you did, in response to “me thinks” makes you a dick and a fool

          That’s what me thinks, asshole.

        2. @I think NOT me thinks
          Methinks that it should be, “It really makes”, not “I really makes”. If one is going to criticize the grammar of another, it might behoove one to ensure that there own is correct.

          That being said, @Melonsoda, it should be “but don’t phrases”, not “but doesn’t phrases” (do not, instead of does not). I don’t point this out to be condescending; just correcting a common grammatical mistake. If in doubt, don’t use the contractions – it makes it easier to determine the correct word. Another trick is to further simplify the sentence by removing the negatives. Would you say “but do phrases” or “but does phrases”? Once you figure that part out, it’s easier to add the ‘nots’.

          And, might I add that I completely agreed with your comments?.

          I don’t know what your native language is, but I know for a fact that I would not have been able to express anything as coherent in your own language, as you did in mine. Thank you.

          1. @botoncandy

            “If one is going to criticize the grammar of another, it might behoove one to ensure that there own is correct.”

            Just letting you off with a warning this time, sir. Next time, try to be more careful.

  2. “Hewlett-Packard’s announcement Thursday that it wants out of the PC business is a dramatic confirmation of some grim trends.”
    It may be a “grim” trend for the crap-purveyors of yore, but it sure as heck is not a grim trend for consumers.
    This is a wonderful, positive evolution, that will enrich the personal and work lives of any tech consumer.

    And to see the blind and ignorant resistance to the evolution to better computing, have a laugh at (most of) the comments posted in response to this original story.
    The posters tend to be geeks, going on about specs, and how non-Apple companies will sweep in and win the Tablet market through better management and marketing.
    And of course there are the Freetard commenters, arguing the opposite, but perfectly illustrating why computer businesses that cannot differentiate themselves from the other assemblers, really should cut their losses and get out of the Win-Tel PC business.

    Apple is here. Geeks and Freetards are not going to keep the other companies afloat.

  3. Told co-workers in 2005 the same thing, just based on my own experiences. It was a sleeping giant ready to wake up and take over.
    They all said MS was too big, too entrenched and too good to ever have to worry.
    Deploying iPads and iPhones now. Mac numbers are growing. Still a Windows shop, but…

    1. As it will be to Asian computer manufacturers. I wonder how many American jobs will be lost through layoffs when HP exits the phone, tablet and PC markets. That’s the sad part. Wall $treat will cheer as jobs are nuked. It always does shortsightedly. (Synergies!)

      It does show that innovation is disruptive. I salute Apple for executing and innovating, and for creating high paying jobs, all of which union thugs want to destroy.

      1. The political right has done a masterful job of blaming unions for the demise of all that is wonderful in this country. Certainly union thugs deserve much of the criticism. Still in my world union workers such as carpenters, electricians, and many others are among the best workers who take pride in what they do. My father was a union carpenter. He made decent wages and had heath and dental benefits. He raised us and provided us with help for a college education. It is not the fault of the union worker that much of our manufacturing has been shipped abroad. It’s not their fault that they cannot compete with the wages paid in other countries. There has to be someone left in this country to buy Apple products and pay taxes.

  4. I think the HP Board will regret forcing their previous CEO to resign and hiring the new guy. The “tablet [iPad} effect” is certainly real. More and more consumers are going to be buying iPads and Macs, versus Windows-based PCs. But NOT all of them. And NOT all PC sales are to “consumers.” Not by a long shot… HP had the pieces in place to reduce their dependence on Microsoft (and Intel), which is what really is holding back the entire personal computer industry (all except for Apple).

    Leo Apotheker seems to be taking HP in a direction that makes him personally more comfortable, which is not necessarily where HP should be going.

    1. I thought the same thing, and that WebOS thing didn’t look sooo bad for a first draft, but of course releasing unfinished products is very bad PR. Still, they’re giving up a bit too quickly. Probably there is something behind this story we haven’t heard yet…

      1. I think the background story IS that Leo Apotheker comes from SAP, which specializes in serving the “enterprise” and “IT.” That’s his area of expertise and that’s where he wants to direct HP (and I’m sure he thinks doing so is best for HP), not this “consumer” stuff. But is it really the best move for HP?

        1. I daresay just as Apple should not officially extend into the serious enterprise space (their killing XServes, XSAN, etc is just proof they’re withdrawing from that market), HP has realized it’s not a consumer company.

          Of course this could also be the new guy canning the product his predecessor championed (HP bought Palm April 2010, Apotheker was hired in September). Steve Jobs did the same to Newton after returning to Apple.

  5. Appotheker says the iPad is having an effect. I agree with that. But that begs the question: why are they exiting this early on a nascent, ascendant market (the tablet space) just as it is getting lift-off? That’s where the biggest money is made, even if you’re not #1!

  6. As I have said before, both Microsoft’s and Google’s models are like the concubinage or vassalage types of relationship. It is inimical to the whole ecosystem. Slaves and concubines gave up their birthright to innovate while the master gouges on the dependents.

    The present economic downturn has clearly panicked many of these companies because they don’t have the cushion of enough cash to ride out of the maelstrom. Apple has a big war chest. When the economy comes around Apple will make people lust for PCs again.

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