Hewlett Packard Eyeing Expansion in China

June 29, 2011
Seeing 'tremendous opportunities in China,' PC maker will build more factories and systems R&D facilities.

Hewlett Packard today said it plans to expand its presence in China, by ramping up investments in cloud computing, systems research and development, technology infrastructure and social media platforms.

HP President and CEO Lo Apotheker and HP's senior management team were in China this week for meetings with customers, employees and government officials.

Apotheker visited Shanghai, Chongqing, Tianjin and Beijing and met with China's vice premier, Li Keqiang, to reaffirm HP's commitment to the country.

"China's vibrant economy, explosive growth in social and mobile connectivity, and strong commitment to innovation present tremendous opportunities for HP," said Apotheker. "We see huge potential in China to deliver on our vision for the connected world spanning cloud and connectivity, from the consumer through to the enterprise."

At a gathering of Chinese journalists and industry analysts in Beijing, Apotheker made several announcements regarding HP's expansion plans:

  • HP opened its first HP Cloud Executive Briefing Center in Tianjin yesterday to provide customers in China and the region with hands-on experience in building, enabling and operating HP-led cloud environments.
  • To tap into the strong engineering talent in Beijing, HP will open a new center dedicated to driving system innovation. The Enterprise Servers Storage and Networking Research and Development Center "will serve as a global hub for networking and information analytics research," HP said in a news release.
  • HP will expand its presence in Shanghai with additional manufacturing facilities; the consolidation of its existing employee sites into one multipurpose campus; and the establishment of a China regional headquarters for the Personal Systems Group in Shanghai.
  • In support of China's 12th five-year plan, HP will collaborate with major cities, including Shanghai, Tianjin and Chongqing, to tackle complex infrastructure, energy and healthcare issues. "HP will use its broad portfolio of solutions and services to transform China's technology infrastructure into sustainable, energy-efficient, cloud-based systems that are equipped to accommodate the country's rapid growth," the company said.

In Chongqing, HP said it will donate 1,000 HP PCs in support of the city's rural development efforts. The company also committed to donating an additional 10,000 PCs nationwide to rural community projects to help bridge the digital divide.

HP Makes Personnel Moves, Launches China Blog

Palo Alto, Calif.-based HP has said one of its "key priorities will be to deliver innovative market-specific solutions to customers in key markets such as China."

To support this goal, HP earlier this month said that Todd Bradley, executive vice president, Personal Systems Group, will lead cross-business initiatives focused on expanding HP's market share in China.

Additionally, Steve Gill was appointed managing director and vice president of Global Sales for HP China on June 20.

"To drive more effective and open, two-way communication with its customers and the media in China," the PC maker launched the "HP China Official Blog" and a number of HP-branded online channels.

"With more than 450 million people online, 64% of whom participate in blogging, China has one of the world's most vibrant social media communities," HP said in a news release. "The HP China blog and online channels give HP an important platform for engaging in dialogue with people about topics that matter to them. The HP China blog also will be a source of updates on local HP news and activities."

The company opened four new "HP Total Care Centers" over the last 12 months in Beijing, Shanghai, Chongqing and Guangzhou.

Over the next year, HP said it plans to open more customer service centers for both its printer and PC customers.

HP first started doing business in China in 1985. HP China now operates nine regional offices, and more than 7,000 retail stores across 689 cities and 2,000 counties carry HP products.

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