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
TheStreet Open House

HP Doesn't Have to Be Apple

NEW YORK ( TheStreet) -- While it is still too early to proclaim the resurgence of Hewlett-Packard (HPQ - Get Report), Wall Street should start giving the company, and in particular Meg Whitman, credit.

For all the talk of the death of the PC due to the dominance of Apple (AAPL - Get Report) and Google (GOOG), HP is growing modestly in other areas of its business.

Although it is often loathed for not being Apple, the company appears to have discovered ways of being the best HP that it can be by figuring out ways to grow its high-margin segments such as services, networking and storage.

After its most recent earnings report, the company's management inspired confidence that it can do what many think is impossible -- turning HP's fortunes around while also placing it on a path towards restoring lost credibility and returning value to shareholders.

The question is, will it be enough to erase the persisting doubt about its future? Although things continue to progress as well as its circumstances will allow, HP still is unable to escape the grasp of what it isn't, as opposed to what it is. It seems the company continues to suffer because its logo is not a fruit.

Granted, at one point the company did suffer from a personality complex by entering into Apple's territory with its TouchPad tablet without being adequately prepared. However, as a long time HP apologist, I will concede that standing up to Apple is no small task for even dominant companies, much less one that has had a revolving door in the CEO's office.

HP's mistake was in not having fully assessed its strength or the current market dynamic to realize Research in Motion's (RIMM) PlayBook, Dell's (DELL) Streak and even Cisco's (CSCO) Cius tablet were all falling by the wayside.

Apple understood consumers whereas the specialty for HP et al was the enterprise. The problem is, the enterprise user and the consumer became one and the same, which placed them all at a considerable disadvantage -- or in this case, Apple's mercy. Today, they have all caved in as Microsoft (MSFT) and Google are now in the tablet market while Amazon (AMZN) is intent on building a larger Kindle Fire.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
AAPL $125.09 -1.00%
HPQ $31.30 -0.86%
TSLA $190.90 0.17%
YHOO $45.00 0.11%
FB $83.19 -0.01%


DOW 17,856.56 -119.75 -0.67%
S&P 500 2,079.00 -7.24 -0.35%
NASDAQ 4,926.2890 -21.1520 -0.43%

Partners Compare Online Brokers

Free Reports

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