HP Condemns Dell Private Buyout, Customers Left Reeling
The company's move is not the best one, the top PC maker says
Dell's move, through which it went private yesterday (February 5, 2013), is meant to act as a catalyst for a better marketing and financial performance, but HP does not think this goal will be reached, at least not easily.Since Dell is one of the greatest and best-known IT and consumer electronics brands in the world, the private buyout decision cannot possibly go by without everyone else commenting on it.
Hewlett-Packard was particularly fast in expressing its thoughts, and they aren't the most encouraging, not at all.
In its official statement, it says that, as a private company, Dell will be very limited in its ability to invest in new products and services.
HP also believes that sudden buyouts like this one “tend to leave existing customers and innovation at the curb.”
To elaborate, “Dell faces an extended period of uncertainty and transition that will not be good for its customers,” HP feels.
Overall, HP has a very bleak view of Dell's future, of a very tough road that privatization always places companies on.
It is a very different opinion from the one Dell's founder has, where the removal of shareholder pressure will allow the company to focus and invest in what the leading body thinks is best.
Then again, HP has every reason to say these things, since Dell losing customers can only work in its favor.
People can't exactly remove themselves from a company's client list and not gravitate towards another brand, unless they want to change to a more spartan or simpler lifestyle perhaps.
In other words, the more customers unsettled by Dell's move, the larger HP's clientele has a chance of becoming.
We fully expect other corporations to speak of the matter in a similar fashion over the next week, though we have no doubt that just as many will be supportive of the maneuver.