What are HP’s most promising growth opportunities?



HP to develop devices that run on Google’s operating system

The traditional PC market is dependent and dominated by Microsoft’s (MSFT) operating systems and Intel (INTC) processors. In order to grab market share in this space, HP (HPQ) must take advantage of these opportunities to develop computing devices that run Google (GOOG) (GOOGL) Chrome operating devices.

According to Gartner, of the 2.4 billion PCs, tablets, phones sold in 2014, 49%, or 1.17 billion, will run the Android operating system. In 2015, Gartner expects that Android will stretch its lead to 53%, or 1.37 billion units out of 2.59 billion. As the above chart shows, among all the operating systems, industry analysts expect Google Android to witness the highest adoption and growth, and Blackberry will witness the lowest or negative growth. Apple’s (AAPL) iOS is expected to have a steady growth.

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Innovation could be the way to retain a foothold in the PC and printer market

HP, along with Intel and Lenovo, are leading players in the PC market. These companies continue to invest massive funds to drive innovation, features, touch screen, and user experience in the PC market to sustain their operations. It has been a common notion that emergence of SMAC (social, mobile, analytics and cloud) has led people’s preference towards smartphones and tablets.

However, according to Pat O’Malley, CFO of Seagate Tech, tablets are now witnessing a decline in terms of sales and popularity. Moreover, business users’ preferences tends to lie in the laptop and PC zone.


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