Business

Pot, meet kettle: HP says Dell buyout will kill innovation

Innovation at Dell is dead, says HP, a company that buried its own innovation alongside its sense of irony.

HP has released a statement in response to Dell’s proposed buyout plan, and unsurprisingly, it’s not optimistic about Dell’s prospects.

“Dell has a very tough road ahead. The company faces an extended period of uncertainty and transition that will not be good for its customers. And with a significant debt load, Dell’s ability to invest in new products and services will be extremely limited,” HP said.

As Dell’s chief rival, HP has a lot to gain if Dell’s buyout plans result in failure. From HP’s vantage, going private may give Dell time to figure out and execute a long-term strategy, but it could also drive customers away. And HP says it will be there to scoop them up.

“We believe Dell’s customers will now be eager to explore alternatives, and HP plans to take full advantage of that opportunity,” HP says.

The irony here is palpable, seeing as how HP itself has been knee-deep in disaster recently. With big layoffs, a nonexistent smartphone strategy, and that $8.8 billion autonomy fiasco, HP is in no position to point a finger at any other PC maker, no matter how tempting it is.

Not that we can fault them for doing so anyway, of course. It does make for good comedy.


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