HP Unveils New Desktop, Vows Continued PC Support
Windsor Genova

Palo Alto, CA

HP unveiled a new business desktop, five days after it announced that it will end its PC unit and focus on enterprise software, services and hardware.

The new product called Compaq 8200 Elite Business All-in-One desktop designed for corporate and public sector customers is powered by Intel second-generation Core vPro technology for up to 40 percent better performance, 15 percent faster hard drive access and reduced downtime via remote IT management.

The PC has a 23-inch diagonal full high-definition LED monitor; an integrated webcam, microphone and speakers for streamlined remote face-to-face communication; SRS Premium Sound for a refined audio experience; and comes with a one-year HP Virtual Rooms license that allows businesses to conduct presentations, team meetings, training events and classes in an easy-to-use online conference center.

Compaq 8200 Elite All-in-One supports up to 8 GB of DDR3 SDRAM PC3-1333 system memory and offers an 89 percent efficient power supply.

HP is assuring continued support for its PC products. The Compaq 8200 All-in-One comes with a three-year warranty for parts and labor and on-site and phone support services.

The new PC starts at $999 and is available now in the United States.

Meanwhile, in a sign that the company's PC unit is yet to be spinned off, HP said it will announce new PCs later this year to fill out its line of laptops and desktops.

Hewlett-Packard announced that it would leave the personal computer business and halt the manufacture of the TouchPad and webOS smartphone line.

The company's PC unit provided 30 percent of sales for Hewlett-Packard last quarter, but it only generated 5.9 percent operating margin, which is the lower among other divisions in the company.

HP shipped 14.9 million PCs last quarter, which is a 17.5 percent market share. Tied for second place are Dell and Lenovo, with 12 percent share each.

Experts agree with HP's move because the company excels more in inventing unique products and tools for engineers, than manufacturing commodity products.

Company executive David Packard was hesitant to focus on PC manufacturing in the early 1990s, while Walter Hewlett, an HP board member and son of co-founder Bill Hewlett, tried to block HP's purchase in 2002 of Compaq Computer, which helped made HP one of the leaders of the PC industry.

HP launched the TouchPad only last month, but because of poor sales even if the company spend so much in marketing the company's version of the iPad, the firm reduced immediately the device's price tag by $100.

The company also disclosed that none of its webOS products hit HP's internal sales targets.

HP Chief Executive Officer Leo Apotheker also announced on the same day the purchase of British software developer Autonomy for about $10.2 billion cash. Autonomy's specialty is database search and other enterprise software technologies.

With these developments, HP cut its full-year revenue forecast by 9 percent and reduced its profit forecast by 16 percent. The company's share prices went down 6 percent in the Thursday afternoon trading after it dipped 6 percent during regular-hour trading.

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