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There is no margin perhaps in PC hardware, but other less commodity hardware has good margins. Do you think Apple only makes 3% on iPads, and iPhones? Do you think HP, IBM, and Oracle only make 3% on their large servers and IBM on it's Mainframes? Do you think EMC only makes 3% on it big storage arrays?

The big problem HP had this time was they brought in a CEO that only knew about software and services because that is all SAP sells, and that CEO didn't want to bother to learn about other areas of the business. HP has a lot of still good hardware, for now.