HP update

(By Anthony Miller). Frankly, this afternoon’s EMEA-orientated concall shed little further light on HP’s European services business as the company resolutely refuses to publish regional or country breakouts unlike almost every other player in the IT services market. However, we gleaned a couple of other snippets.

First, HP’s netbook business (or ‘mini-note’ as they call them), which are now offered by T-Mobile and Orange as part of their ‘buy mobile broadband and get a netbook free’ type of package. HP EMEA MD Francesco Serafini admitted that HP had been late to market with their netbook and are not driving this market (though I sensed a hint of “yet”!). HP has reshaped its low-end notebook product line to be more aggressive on price, accepting that this will pressure margins. It’s dog eats dog out there, folks.

Serafini also confirmed that HP is imposing a permanent, across-the-board salary cut for all employees, of between 2.5% and 20% depending on seniority. However, this will be ‘voluntary’ for European employees, though Serafini expects European leadership and management will ‘do the right ‘thing’. No pressure there, then.