Is Samsung aiming to snap up HP's PC business?

Samsung logoIf Hewlett-Packard sells off some or all of its non-printing consumer hardware business, the most likely buyer is probably Samsung. And the Korean hardware giant has reportedly reached out to Taiwanese notebook vendors to explore just that.

According to Digitimes sources, Samsung met with top HP notebook contractor Quanta Computer, as well as Compal Electronics and Pegatron Technology, to discuss outsourcing notebook orders. All three companies are based in Taiwan, while Samsung currently manufactures all of its computers in mainland China.

To these sources (upstream vendors in the PC component industry), this signals something bigger than just Samsung trolling for new subcontractors: Samsung seem(s) like it is already in preparation to take up Hewlett-Packards (HPs) PC business.

It is best known for its wide range of consumer electronics hardware, but Samsung already ships 10 million laptops annually (a projected 16 million-17 million this year), still a fraction of the 64 million PCs and 40 million laptops HP shipped in 2010. Samsung is also a leading manufacturer of memory, hard drives, screens, batteries and other computer components; control of HPs PCs would give them a huge outlet for those products and plenty of opportunities to cut costs through vertical integration. Finally, unlike HP, Samsung is firmly committed to (and has found great success in) low-margin, high-volume hardware.

As we reported last week, rumors of an HP-Samsung deal have been circulating in Taiwan and the tech press since 2010. Reportedly, a deal to sell the PC division was in place then, but fell through; after rumors of a continued deal reemerged in March, HP flatly denied it.

Since HPs announcement last week that it was looking to separate part or all of its Personal Services Group, speculation about a Samsung deal has started again. As ZDNet UKs Jack Schofield writes, Samsung may be the only PC company that has the money, that is big enough to absorb PSG, and that would actually want it:

Acer is already struggling with falling PC shipments, Asus doesnt have the cash, and MSI is too small. Lenovo has already taken over IBMs PC division and doesnt need PSG. Neither Sony nor Apple wants to be in the low-end PC businesses anyway: both target people with more money. Microsoft cant buy PSG because it would be a giant headache, from an anti-trust point of view, and because it would be competing with its own customers (a mistake Google is making by buying Motorolas phone division). That leaves two main optionsToshiba and Samsungwith the latter being the clear favourite.

Or at least, Schofield adds, would want HPs laptop business. HPs Personal Services Group is huge, much bigger than just computers, and Samsung already has substantial overlap with many of its product categories. But the long-term growth and profit prospects for products like digital cameras and desktop towers (outside of enterprise and office sales, which HP could conceivably fold in anyways) are fairly grimwhich is why HPs looking to separate from it in the first place. The future of the PC is in increasingly lightweight, portable machinesor something HP hasnt invented yet.

(Plus, you know, whatever patents HP would part with that might help Samsung, blah lorem patents ipsum blah.)

So if Samsung takes on HPs hardware business, theyre likely to only take or keep a piece: enough to make them a major player in computing, but no more than would drag them down like it did HP.

However, even for a company as large as Samsung, just a piece of HPs PC business would still be a very big piece.

Source: Ars Technica

Tags: HP, Samsung

Comments
Add comment

Your name:
Sign in with:
or
Your comment:


Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party


Last news

 
The company has announced that starting in April 2018
 
 
The Intel Speech Enabling Developer Kit is now up for pre-order
 
Its now open to third-party developers and designed for smart home devices
 
The first official release now comes with Gnome 3.26 as the desktop environment of choice
 
Users claim the Start menu isnt working after the upgrade
 
Cook responded to a customer e-mail to say that the Mac mini still has a future
 
Android 8.1 Oreo arriving on Pixel phones "in the coming weeks"
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 /
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
 
 

News Archive

 
 
SuMoTuWeThFrSa
1234567
891011121314
15161718192021
22232425262728
293031    




Poll

Do you use microSD card with your phone?
or leave your own version in comments (4)