The new Hewlett-Packard says it will become the world"s premier technology provider, but admits that the market is shrinking.
In back-to-back speeches at HP"s Cupertino, Calif., offices Tuesday, CEO Carly Fiorina and new company president Michael Capellas declared that the new HP will strive to be No. 1 in a variety of markets, but added that the environment is getting more difficult.
The tech industry simply won"t grow as fast as in the past, and HP is going to have to keep a lid on costs.
"This is an industry that will be characterized by slowing growth going forward," Fiorina said. "It is an industry that will consolidate. It is an industry that will require sustainable business models. The IT industry will never return to the heady days of 20, 30, 40 percent growth."
To succeed in this sort of environment, HP will have to continue to invest heavily in research and development to differentiate itself, Fiorina said. The company will invest $4 billion a year in R&D, she said.