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HP Snubs Mainstream Retailers By Selling Notebooks In Discount Stores & Direct

Hewlett Packard who will in the early hours of Wednesday morning announce what they claim is the worlds thinnest premium notebook, has moved to flogging thousands of HP branded notebooks in discount stores.

Both Aldi and Big W are now ranging HP notebooks in a move that will strip sales from their traditional retailers such as JB Hi Fi, Harvey Norman and Officeworks, ChannelNews has been told that pallet loads of HP notebooks have been made available to discount stores.

The Company who reported losses in Australia of $152 Million last week has racked up almost half a billion dollars in losses over the past three years.

In their latest discount offering HP is flogging a HP 250 G4 15.6″ notebook with Windows 10 and a 1.6GHz processor for $349 dollars at Aldi.

They are also selling their Pavillion G6 notebooks at Big W.HP Big W

Darren Needham Walker Marketing Manager at Hewlett Packard Australia refused to comment when asked why HP felt they needed to expand the sale of their products via discount retailers, when their products are already ranged at JB Hi Fi, Harvey Norman, Officeworks and The Good Guys.

We can also reveal that HP has moved to expand their direct sell model.

Recently the Company hired a former Toshiba executive whose role it is to expand sales via the HP online site as opposed to selling via mass retailers.

Insiders at HP have told ChannelNews that the US Company is looking to take sales away from mass retailers because of what has been described as The high cost of doing business” with mass retailers.

In Australia HP has struggled follows a $270 million loss in fiscal 2013, and a $58 million loss in 2012. The last time the company made a profit was in 2011, at $134 million.

HP last year made the decision to write off $161 million in deferred tax assets – a step usually taken when a company does not expect to make profit in the immediate coming years. It was subsequently hit with a hefty tax bill of $165.9 million that year.



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