This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Only Way HP, Dell and RIM Can Survive

Stocks in this article: HPQ DELL RIMM

NEW YORK ( TheStreet) -- Last month, I chided a lack of innovation in tech, targeting the poster child for the status quo in Meg Whitman and HP: Everything That Is Wrong With Tech.

You know you struck a chord when multiple people, independent of one another, email to say, "Thanks for having the guts to finally call out Whitman." Apparently, I am not the only one who doesn't believe the hype.

In the above-linked article, I came down on Whitman's comment that Hewlett Packard (HPQ) just needs to be in the smartphone space. How novel.

Now comes official word that HP will take another stab at the tablet market with an enterprise version running Windows 8. TheStreet's James Rogers tells us that HP will step up efforts in the software and services area. Best of luck competing with Cisco Systems (CSCO) and IBM (IBM).

That's really what it comes down to. Whitman and, by association, HP have no business competing with Cisco, IBM and Apple (AAPL). Didn't HP, and its equally-as-inept counterpart Dell (DELL) learn anything from Research in Motion (RIMM)?

Let's consider the lessons RIM taught us.

First, own up to getting your hind end handed to you by Apple. RIM did this -- though not explicitly -- but about two years too late. HP sort of has. In fact, Whitman came closer to doing what a company in an entirely different space did.

Domino's Pizza (DPZ), like Whitman, told the world, in no uncertain terms, we stink. What we have been doing hasn't been working. Our customers and the general public deserve a much better effort. From there, CEO Patrick Doyle led a refreshingly honest and innovative wholesale transformation of the company. That segues into point two.

RIM taught us that after you admit defeat or, at the very least, no longer have the will to fight, you need to make major changes. Of course, RIM did not do this. It has basically decided it will chart the same strategy that failed under a new boss, who is, for all intent and purposes, same as the old boss.

While HP might be doing some things different internally, they're not doing anything that we haven't seen before or is an invigorating take on what already exists. HP did not bring in a leader who is capable of enacting such radical change.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs