) have stopped the sale of the latest laptop - Chromebook 11 -
after several customers complained about the overheating of the
charger. As a safety measure, Google has issued a statement
asking Chromebook users to use micro USB chargers instead of the
designated ones for the interim period.
Chromebook 11 was released a month back and was competitively
priced at $279, which helped it to record incremental sales.
Reportedly, the device was the fourth best-seller in the laptop
). Chromebook 11 was also sold through
Best Buy Co.
), the Google Play Store and other select outlets.
Notably, the current overheating of the chargers is not a one
off incident as other computer makers such as Apple, Dell, Lenovo
and Fujitsu Ltd. have also faced these issues in the past.
Now, this debacle is likely to hit the sales of the device
unless the manufacturer comes up with a speedy and convenient
solution. Replacing the chargers is also an option, though it
could be costly for the company. Moreover, other hardware makers
such as Toshiba, Acer Inc. and Lenovo have announced Chromebook
devices which could possibly dent H-P's share.
As such, H-P is still reeling under pressure from the
declining PC business. The company has been trying hard to shift
its focus from its PC-centric business to the high-margin server,
storage, cloud computing and analytics business. We believe that
these segments will help the company grow in the ensuing
Nonetheless, a sluggish macroeconomic environment and stiff
competition from other technology bellwethers such as IBM and
Salesforce.com make it even more difficult for H-P to gain market
share in the cloud and security space.
Currently, H-P has a Zacks Rank #3 (Hold).
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