New Hewlett Packard CEO Meg Whitman has asked investors to lower their expectations for 2012 as the company tries to do a performance turn around.
The world's largest computer maker has struggled with a low consumer PC demand and a lot of controversies surrounding its CEOs. HP is trying to reinvent itself as an enterprise service provider and plans to spin off its PC business.
The company shocked the world by abandoning its webOS division, which it got when it had acquired Palm, after launching a new tablet and a smartphone.
Whitman, who took over from Leo Apothekar a few months ago, is in charge of dealing with the flagging sales and has to ramp up innovation and research within the company.
The CEO has dubbed 2012 as the ‘reset and rebuilding year' for Hewlett Packard, warning investors not to expect much from the company as it tries to reinvent itself.
The company plans to increase investments in research and development and develop its personnel and internal systems. Whitman also said that the company would have to deal with the challenges posed by the external environment like the falling consumer demand in Europe and the flood in Thailand.
"We have got some HP-specific challenges. 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." Whitman said reports Reuters (opens in new tab).
"We need to reduce the drama here, there was a lot of drama in 2011", she added.