This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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

Does HP Deserve a Do-Over?

Stocks in this article: HPQ MSFT AAPL RIMM GOOG NOK

NEW YORK ( TheStreet) -- F. Scott Fitzgerald once wrote that "there are no second acts in American lives." That is also true in the world of business and Wall Street, where companies rarely (if ever) are given second acts or "do-overs."

But this is what tech giant Hewlett-Packard (HPQ - Get Report) is asking for, or thinks it deserves, as it is now reconsidering its position in the smartphone market.

In a recent interview, company CEO Meg Whitman confirmed what has been speculated upon for quite some time -- HP will re-enter the smartphone market. She was quoted as saying:

"We have to ultimately offer a smartphone because in many countries of the world that is your first computing device. There will be countries around the world where people may never own a tablet, or a PC, or a desktop; they will do everything on the smartphone. We're a computing company, we have to take advantage of that form factor."

As an unabashed HP apologist, I'm getting some mixed feelings about this. While I do appreciate the company wants to make preparations for the inevitable post-PC era, it seems we've been down this road once before. The result was a disaster.

Now it wants to compete with leaders Apple (AAPL), Google (GOOG) and Samsung, the so-called "axis of evil" that currently dominates an already saturated phone market. I'm not sure that is a great business strategy for company like HP that is in the midst of recovering from previous mistakes.

After all, this is the same cut-throat industry that has left for dead once-dominant powers Research in Motion (RIMM) and Nokia (NOK) while leaving little room for anyone else wanting a piece of the pie.

Even Microsoft (MSFT) is finding it increasingly difficult to convince the market that it can produce a phone that consumers love. That it needs Nokia's help to do it should serve as a reminder that perhaps HP is not prepared to go it alone it at all.

What's more, it seems exceptionally bold that HP cares very little that RIM has all but fallen by the wayside after having every advantage in the world as once a market leader.

So HP, which fell flat on its face after its last smartphone attempt following its Palm acquisition, needs to answer some very important questions here: What will be different this time and should Wall Street care?

That might sound harsh but it appears the company has found a new leader in Meg Whitman who, so far, appears to have placed the company on a path towards a solid recovery.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

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