HP Seeks Stability In 2012 After Rocky Year

New CEO TO "Reset And Renuild" Company

After a turbulent year of strategy flip-flops and executive ousts, HP says they will ramp up spending on research and services to turn around lagging computer sales that fell nearly 91% during its fourth-quarter. 

Newly hired CEO Meg Whitman calls 2012 a “reset and rebuilding year” for the world’s largest technology company. "We have got some HP-specific challenges," Whitman said in an interview. "We have got to improve execution, we have got to turn our services business, we have got to manage down our IPG channel (imaging and printing group) inventory, we have got to turn around China."

The former eBay Inc CEO, who took over at HP only in September, also said a slow global economy, and Europe in particular, was another challenge along with flooding in Thailand.

Whitman said 2011 provided too many distractions, while an announced decision to consider a sale of the personal systems group hurt HP's business by driving off potential buyers, particularly in China.

"We need to reduce the drama here," she told analysts on a conference call, with a slight chuckle. "There was a lot of drama in 2011."