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[HPQ] Hewlett-Packard Co

Symbol: HPQ
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11/19/2008 01:27am
Hewlett-Packard Co "Heard on the Street" examines HP's business model - WSJ

- The WSJ argues that HP's outlook shows that not all tech companies are the same.
- Like Intel, H-P's PC unit is being impacted by the global slowdown, H-P's PC business only accounts for close to 20% of its operating income and a significant portion of the company's profits come from its printer-supplies unit.
- Some believe that even in a recession, it will be hard for consumers to stop printing out material from their computers.
- WSJ notes that in addition to H-P's printing unit, its support services and outsourcing units could do well in a recession.
- 65% of H-P's operating income is derived from relatively defensive businesses, according to an analyst at Sanford Bernstein.


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