1 Simple Reason HP Will Never Be Great Again

In the following video, Jeremy Phillips and Austin Smith discuss the future of Hewlett-Packard.

Austin says HP could be the next IBM if it were to develop a tech consulting arm, which would be a cash-flow machine. But it hasn't said anything about doing so. Instead, the company is working on a 3-D mobile display, a technology that's easy to disrupt, doesn't help in terms of a moat, and may not even be patent-protected.

In short, the likes of Apple can gain market share, even as it charges more, while everyone else is focusing on things like specs. As Austin sees it, HP and archrival Dell are simply focusing on the wrong things.

For more details, check out the video.

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The article 1 Simple Reason HP Will Never Be Great Again originally appeared on Fool.com.

Austin Smith and Jeremy Phillips own shares of Apple. The Motley Fool recommends Apple and owns shares of Apple and IBM. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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