Achim Kuttler He is Vice-President for Europe of personal devices in Hp. Following the division of the company in two, the struggle to be the number one in the PC market, the crisis in the classical sector of the computer with the mobile world and the aggressive plan of Hp releases had many questions for him.
Engadget: Has a change there been in strategy from the split into two companies, Hp and Hewlett-Packard’s Enterprise?
Achim Kuttler: The split took place, officially, in November. However product development cycles are longer, hence tantes talk of separation we centraramos in the user level work and personal needs, how it changes how people increasingly want more portable and mobile devices, attractive and the market. Long ago that we reflect on what we represent and what is our strategy.
Return to innovation, to reinvent the industry. That’s when we started to think seriously about what really matters and how we can change our products and designs.
Engadget: It is a strategy all or nothing? Have you seen you bound by how complicated it has been in the market?
Achim Kuttler: Our goal is to be the market leader. We do not want to be second manufacturers. The industry in which we operate changes very fast and you have to be a leader in the market. To do this you have to understand what the user needs and from there to create products that follow that strategy.
Engadget: Of course, but that speech is the same for all companies. The question is how. You want to be leaders in the market and how will you achieve it?
Achim Kuttler: I return to consumers. I think the first thing to do is to understand very well the needs of the users and think that it is not to ask what they want, but to understand how to use the products. We see changes in the patterns of conduct. In terms of mobility: people moves a lot. There are different types of needs in terms of security: someone wants to access your files, you upload your data to the cloud… You really have to see how people use products and based on the use of products we can understand the needs and from there to design a product that fits the needs of the users. This really helps us to become leaders in the market.
Engadget: Again, that is what tells everyone what is what makes you different?
Achim Kuttler: I think that everybody tries to do it, but I think we understand it better. If you look at our recent results I think it demonstrates it. Results of the products that we have taken recently, as the spectre of 14, the thinnest laptop on the market.
We look at the technology. We understand users and know that they don’t want to give up the devices and hence performance that we use powerful processors like the Core i. With the Spectre 13, 10, 4mm, you have a powerful processor in a super thin product. This is one of the advantages of HP that also makes us leaders in terms of engineering products.
Engadget: * what can you tell me about provide for the needs of the users? The latest HP products show a large refining but to be leader in the market you have to be able to predict what will happen in the future, anticipate and be able to mark the trend *
Achim Kuttler: I think it is a good question. We talk about core, growth and future across the company, whether in the field of printers, graphic design… When we think of our strategy, we think of these factors.
The core is what we do today. We have invested billion to be more competitive in the market. We look at how to speed up our processes, in how to introduce products more fast, how to sell more desktop PCs and laptops. If you look at our recent results, we have a market share of 25% that we had not had until now. This is only the core of our business.
In terms of the growing segments, they are those who are going more in the market. We have said that it is a tough market, you now have other devices such as the two-in-one, etc. We have increased our efforts in product development to bring more products to this segment of the market and be leaders. That is what we call our areas of growth.
Another important part is what we call “commercial mobility”. Many business customers want to improve their productivity, how to have an environment that is more mobile, rather than having 3 or 4 different devices, better to have a single device. You can use it at home, in the office, it’s a phone, it is a laptop, is a desktop.
As for the future in the field of PC we focus on what we call “blended computing”, as in the case of the Sprout line. In the future we create categories where we anticipate future needs and how it will work in the future. With Sprout, you can see many of the ideas: you can imagine a company that wants to have sports customizable. You have the scanner 3D, put the foot, put colors as you want, get materials, give it to a button, prints the product and get home. The possibilities are endless in Sprout and it is a product for which we create categories for the future.
Engadget: In terms of mobility… According to the numbers of HP year spend and other companies, it seems that all PC makers that aren’t in the mobile market are happening bad. The HP approach to smartphones and mobility… The Elite X 3 with an operating system with less than 1% of market share do you think has future HP in the sector of smartphones?
Achim Kuttler: It is a good question. I think our strength is rather on the B2B side. One of every three computers in Europe in the business world is a HP computer with an important difference in terms of the next competitor. This demonstrates the ability of our brand, our devices, our solutions, relationship with consumers, quality, etc..
If you look at the market of smartphones, the market exclusively phones for consumer Windows hardly it has market share and company, but have our market share is the best way of entering the market? I think you have to look at what is the best segment and what you’ll need in the future. It can be that in the future, the devices are very different.
Today, a laptop is a portable, five years from now may be a two-in-one, a convertible or something between. We spend probably 3 different devices to carry a single device. The way in which we want to introduce us to the market is in the business field, large corporations, understand what they need and even change the paradigms of Informatics.
Why Windows? Before the departure of 10 Windows Mobile, I spoke with several important clients assessing different operating systems. Most of the PCs have Windows but at the time were not happy with Windows 8, hence many will remain in Windows 7, and many wondered what, if continue with Windows or fixed in iOS or Android.
Consumers knew that we have laptops, smartphones, desktop but there is the question of what you want to have in the future. After the arrival of Windows 10 the debate has changed, now on what is spoken is Windows 10. For example, I hope that this year many large customers switch to Windows 10 and then have the same operating system on all your devices. You have security, management options, supports the applications. So we decided to bring out a product with Windows 10.
If you look at the market of smartphones, the market exclusively phones for consumer Windows hardly it has market share and company, but have our market share is the best way of entering the market?
Engadget: As for Windows 10 in mobile, we have now to Microsoft migrating their applications and solutions to Android and iOS. Is it easy to integrate Windows with other systems and differential for Windows Mobile in the enterprise decreases
Achim Kuttler: at the end you have to play in different areas. You have Windows devices, devices with Chrome and all Android devices. Chrome and Android do not have much presence in our segment in Europe. We see many opportunities in terms of education, especially in the United Kingdom. If you look at the U.S. market, Chrome is more present at the educational level. We will also have an environment with multiple operating systems but if I think of large consumers I think the predominant system is Windows 10.
On Windows Mobile in the enterprise, it’s security and management problems. If you look at the Elite X 3 have a special software with a secure panel, you do not want that nobody interferes, that is why we have created a special for your corporation application so that nobody can access the data that is transmitted internally, etc.
Engadget: In terms of computers 2 in 1, for the last two or three years, manufacturers like HP have been experiencing but now… How can I manage the current situation with the lack of apps for the tablet mode? Do you think that it makes sense for a company like HP manufacture tablets with Android or any other type of OS? How do you think that consumers are responding to the model 2 in 1? It is worth to have a tablet or a computer?
:Achim Kuttler: I think with the changes that are occurring in the industry at the moment they do that we have many different types of devices and at the end will be the user who decides what they want to. From here 2 or 5 years, may be different and is already determined what the consumer wants. Now there are all kinds of options.
There are those that prefer a tablet with a keyboard, others prefer a laptop that can remove the keyboard and use it as a tablet… our responsibility is to understand the needs of the user and provide consumer products, helping them to make a decision. A client A has X needs and purchase a laptop normal; a customer B has other needs and purchase a 2 in 1 or a convertible.
If you look you in the numbers of tablets, from my point of view tablets as such market is disappearing. In the last 2, 3 years, sales have fallen a lot and there are not many reasons to buy a new tablet today. In most performance than they do on the tablet is to consume content, read mail, magazines, etc. do you have to renew your tablet for your performance? No. There are no reasons to buy a new tablet. Why I believe that market tablets are increasingly going to less. On the other hand, the sector of 2 in 1 each time will more at a rate of 80%. But it is a different device, it is rather a laptop that I can use as a tablet and for customers of the business world have taken model Elite X 2 with a smartcard which can use for authentication purposes. It also has a keyboard designed so that it does not reduce productivity.
Engadget: HP is a very recognizable brand are what leads you to change the logo?
Achim Kuttler: I think all HP brand is identifiable in the market. We defend the reliability, quality and service to the consumer. The brand itself has a very large value and what we want now is to be an even stronger brand to have more innovation leadership. So we have changed the logo and the classification of products, launching several campaigns to have greater presence in some markets.
Before spoke of premium products from more than €800, a segment that is growing in the market, whether the user enterprise or household level, really doesn’t matter. Black and gold are our new colors which are behind the premium range and which we will use in advertising campaigns for these products. We want to be more emotional, creating passion for the consumer obsessed with product. Are certainly betting on that aspect to be best recognized from the point of view of the consumer.
Engadget: Google has presented new features in ChromeOs what other changes expected this operating system HP? The market has not yet responded to the expectations.
Achim Kuttler: I think that, first of all, we don’t develop operating systems. Of course we talk to Microsoft, we talk to Google about what we think they should improve. Our goal is to do the best job with those operating systems and is in focus. At the end and at the end it is a matter of what the customer wants, if you want to use Windows, if you want to use Google, etc..
In the long run in Europe I think that people will get used to use services in the cloud
Engadget: Are you happy with the market share of your products with Chrome OS?
Achim Kuttler: again, I think that they are different things. If I have in mind the market share of our products with Chrome, I’m happy. But the truth is that it is a very small market. America is not my responsibility and it is a different market, but that market is still very small in Europe.
Engadget: Do you think that there is any reason why Chrome in Europe market is so small?
Achim Kuttler: You know how this works, above all it is based on the cloud. I think that in some markets in Europe the infrastructure…
I also believe that the cultural factor for us as Europeans is important to, is by what even hesitate. We don’t want to upload it all and use that computer paradigm. It is not chrome, but rather of infrastructure and cultural challenges. In the long run, I think that people will get used to use services in the cloud.
The way in which we consider 3D printing is that it is not for domestic use. HP not interested in investing there. We focus more on prototyping and production environments.
Engadget: You are talking a lot of it as a pillar of future do you think that the 3D printing will be available to everyone soon?
Achim Kuttler: The way in which we consider 3D printing is that it is not for domestic use. HP not interested in investing there. We focus more on prototyping and production environments.
We envision that by a few years are going to be able to print some products, dictate them in a shop and get home. First are the prototypes and hence are going increasingly to production. We have the technology that allows us to different materials, different colors, as well as different density and stability of materials. This opens the doors to many markets. But all this is a view, it won’t happen in the next two years.
Engadget: You also speak of virtual reality, but does not see you there still more than deliver the PC what will be your role in the virtual reality further than that?
We believe that virtual reality has a niche, as in the case of films, and this makes us think how we can design products that have enough capacity to support virtual reality.
To this day as consumer have Oculus and lives, you can buy a desktop that can work at those levels and that is the solution that we offer. We believe that the virtual reality market will continue to grow and that have different sectors in this regard, video games being the most obvious and we believe that video games are moving from consoles to PCs. I think you’ve seen that said Microsoft and if you look at gamers, they have better performance and more flexibility if they use a computer instead of a game console. There are many opportunities in terms of partnerships… the possibility of working with someone who is 9000 kilometers.
Engadget: OK but not me just be clear, what we can expect from HP in this segment?
Achim Kuttler: Today we provide instrumental technology and from there see what opportunities will there be in the future.