Technology giant Hewlett-Packard Co. (HPQ) started the New Year with the launch of workstation Ultrabooks — the thinnest and most powerful iteration of laptops. HPQ also introduced a next-generation virtual workstation, thereby providing enhanced performance and secure connectivity.
The company’s latest offerings include the HP ZBook 14 and 15u Workstation Ultrabooks, the HP DL380z Virtual Workstation and the HP Remote Graphics Software (RGS) 7.1 that enhance the web experience and provide high-quality visuals.
Powered by Intel Inc.’s (INTC) Core processors, the ultra-portable gadgets (HP ZBook 14 and 15u) are expected to improve the user experience with better connectivity.
The Ultrabook will support huge file storage with 16 GB (gigabyte) to 1.25 TB (Terabyte) solid state drive options and provide 3D graphics. It has been designed to make data center handling simpler, more flexible, efficient and cost effective. The Ultrabook, though a high-end product, is suitable for both consumer and corporate purposes. HPQ’s ZBook could challenge Dell Inc.’s Ultrabook in the rapidly growing market for ultra-portable computers.
HPQ’s entry into the Ultrabook market actually signals its exit from the netbook market, which is being cannibalized by tablets. The new Ultrabook will feature Microsoft Corp.’s (MSFT) Windows 8.1.
The company’s continuous efforts to roll out new products will help the company to grab additional market share. Priced at a respective $1,249 and $1,199, the HP ZBook 14 and 15u will be available by January.
Going forward, the new product launches will push HPQ further toward the high-margin enterprise storage space, thereby cutting its dependence on the PC market.
We also believe that the new offerings will help HPQ to simplify the complexity associated with the management of IT assets and consumer electronics, in accordance with environmental and data security regulations.
Apart from this, we remain optimistic about HPQ’s strong business model, as well as its leadership position in both PC and Server segments. The company is also expected to benefit from PC refresh cycles.
However, increasing competition from companies like Accenture plc, IBM Corp. (IBM) and Oracle Corp. (ORCL) coupled with continuing macroeconomic challenges and tepid IT spending will pose challenges, going forward.
Currently, HPQ has a Zacks Rank #3 (Hold).
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