HPQ: Who are You HP Buyers?

Alright, who are you damn HP computer buyers? The computer company delivers a beat-and-raise quarter — it exceeded estimates, and guided upward going forward — and I can’t figure out who you people are who are buying the company’s over-priced, under-configured and aesthetically unappealing gear. While Matt’s right at the Times — overseas buyers are propping up the enterprise market — that doesn’t explain purchasing ill-priced product.


As a related aside, Bespoke provides a good example of why trading earnings releases from historical patterns is fraught with problems. Yesterday it wrote that, post-earnings, HP stock tends to trend down, making trading the stock today after last night’s release a poor bet. Ouch.


  1. The reason is the re-seller channel. If you are a reseller and want to sell a total solution (there’s not much money in the computers anymore) then you are probably going to go with HP. The other game in town Dell is simply to difficult to deal with. So when somebody wants a turn key network then the servers etc are probably going to be HP. Then the company keeps going back to that re-seller for more equipment. Equipment upgrades etc are going to be HP.

  2. They are all in India!
    BW Oct. 4, 2007: India is proving an easier sell for the foreigners than China has been. The People’s Republic is dominated by Lenovo Group Inc., but HP has overtaken local favorite HCL Infosystems Ltd. in India. After a push into smaller cities, the American company now controls more than 21% of the market, vs. 13.5% for HCL, the No. 2 player, estimates researcher IDC.
    BW: Nov. 20, 2007: Revenue from the so-called BRIC—Brazil, Russia, India, and China—grew 37%, and now accounts for 9% of the company’s $104.3 billion in sales.

  3. I think some of it comes down to customer service too.
    It doesn’t matter how amped up your machine is if you can’t get it fixed if something breaks. Right now, HP is better than say – for example Dell – when it comes to support.
    Try talking to Alienware support someday, and you will see why people will accept less for better support.

  4. I got a great price on an HP laptop at Best Buy on one of their “only 10 per store” sales. It even came with Vista Home Premium which, after 15 years of Windows use, pushed me into trading it with a friend for his iMac laptop. I also got a Mac at work to administer my Windows 2003 servers.

  5. lots of PC/laptop sales in China, India where Dell is weak…and stronger in enterprise in mfg verticals and not as much in hurting financial svcs…is Hurd good or lucky?

  6. Josh Stern says:

    My wife wanted a 12 inch 4 lb. laptop and we found a refurbished NC4400 (core Duo 2GHz, XP pro) with 3 year business class warranty for $1000 from HP business outlet (10/07).