Shares of world's largest PC maker Hewlett-Packard went into a tailspin after the firm unveiled lackluster quarterly results and further cut the firm's outlook for the rest of the year.
Compared to Dell's 7 per cent consumer downturn, HP's end-user business was down 23 per cent with HP chief Leo Apotheker calling blaming the downturn on a 'challenging' consumer PC market.
Apotheker laid into former HP boss Mark Hurd's record of under investment in areas of the business such as IT services. "HP is losing market opportunities by not being in the businesses we should have been in," he said.
"On the other hand, we are slowly drifting toward low-growth, low-margin activities," he warned while pledging that the firm will do more to invest in the lucrative services business.
HP is hoping the firm's investment in WebOS will rejuvenate the consumer business through sales of WebOS devices such as smartphones and the TouchPad. The company is also set to give the WebOS ecosystem a shot in the arm by shipping WebOS on all new PCs.