HP decides to spend more on hiring and expanding
May 18, 2011
Source: Media Mughals
By: Anthony Mawrie
Hewlett-Packard Co (HP) has decided to go on a spending spree and cut its earnings forecast for 2011 while arch rival Dell Inc has experienced yet another profitable year.
Both the companies have been facing serious threats from the booming industry of mobile gadgets like the iPad from Apple Inc. To compete with the gadgets the companies have decided to introduce other services which include helping corporations set up networks, servers and storage.
Leo Apotheker, CEO of HP announced that the company would invest a huge amount on hiring and expanding its services division to get the company move ahead of competition.
HP stocks however tumbled more than 7 per cent. The stock of Dell on the other hand rose by 5 per cent. Dell's profit was a direct result of its earlier decision of investing more on its services.