Senior VP, Chief Strategy Officer & Investor Relations, Hewlett Packard Enterprise
Search every verified Shannon Cross interview, podcast appearance, and on-the-record quote — each transcript cross-checked by AI and human review to confirm speaker identity. In a September 2012 interview, Shannon Cross, then an analyst at Cross Research, discussed the earnings reports of Dell and Hewlett-Packard. Cross stated that both companies were shifting their revenue mix toward higher-margin areas, such as storage and services, moving away from the low-margin PC business. She noted that Dell was focusing its research and development on storage and other growth areas rather than PCs. Cross also commented on HP's services business, saying that the prior administration had underinvested in EDS, leading to problems that HP was addressing by reinvesting. Regarding HP's CEO Leo Apotheker, Cross said it was early to criticize him for not delivering consistent earnings, noting that he had hit earnings targets but that guidance had not improved, and that he inherited significant underinvestment on the services side. On tablets, Cross observed that Apple was the dominant player with about 70% market share, making it difficult for competitors to challenge its ecosystem. She suggested there was an opportunity for tablets in the corporate world over time, though PCs would remain a major part of the corporate environment.
“Dell is mix shifting to higher margin revenue as is HP for that matter, moving more into storage and some of the services and other things that move away from the low margin just pure client business.”
“HP decided to take the pill and basically say we can continue on this path and run into a wall at some point in time or we can reset expectations, reinvest in the business, really drive some vertical solutions, hire more salespeople and have a more sustainable profitable business.”
“Dell doesn't spend that much in terms of R&D in the PC business anymore; they focus their R&D on their storage business and other areas where there's growth opportunities.”
“Even Dell would say that likely there's pressure from component costs as you go further into the year, but their mix shift to higher margin revenue helps offset that.”
May 17 (Bloomberg) -- Shannon Cross, an analyst at Cross Research, talks about Dell Inc. and Hewlett-Packard Co.'s earnings ...
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