[conspire] HP Melt Down

Ruben Safir ruben at mrbrklyn.com
Thu Aug 25 18:26:01 PDT 2011

> One of the most important definitions of competition given by
> economists includes as an essential component getting out of
> unprofitable markets, and leaving them or selling that part of the
> business to those who develop a comparative advantage. As in
> IBM/Lenovo, and presumably HP and its so-far-nonexistent buyer (oops).
> No zombie corporations, as in Japan, no other forms of
> anti-competitive subsidy, etc.

The unit made a 7% profit over the last year which in most businesses is
a very considerable profit.  What does your standard supper market make,
or GM?  From how i can see it, computer businesses are very much like
Pharmacy companies.  They spend more time trying to avoid competition,
and refusing to produce anything but the highest margins, then get
product out.


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