IBM vs. HP: A Tale of Two Blues
IBM competes with HP over...			99.5%	of its revenues		HP competes with IBM over...			40.2%	of its revenues
IBM			2006e	% of		HP			FY06	% of
			Revenue	Total					Revenue	Total
Hardware			$22,743	25.1%		Hardware			$17,030	18.6%
						Printing&Imaging			$26,410	28.8%
						PCs			$29,040	31.7%
Services			$41,846	46.2%		Services			$6,240	6.8%
Maintenance			$5,982	6.6%		Maintenance			$9,770	10.7%
Software			$17,297	19.1%		Software			$1,270	1.4%
Other			$464	0.5%		Eliminations			($629)	-0.7%
Global Financing			$2,323	2.6%		Financing			$2,527	2.8%
Total			$90,655	100.0%		Total			$91,658	100.0%
									$36,208	(w/o PC/I&P)
Net Profit			$9,464	10.4%		Total			$6,190	6.8%
			1.5	times HP Net					$3,151	(w/o PC/I&P)
			3.0	times HP Net
Without PC/P&I, IBM 2.5 x HP Rev; 3.0 x HP Net						Without PC/P&I, HP Rev $36B; Net $3.15B
	Source: Annex Research