Fiorina: HP Will Continue To Be Aggressive On Pricing

Carly Fiorina, HP Chairman and CEO, said during an analyst conference Tuesday that the company's cost savings allow it to aggressively target competitors such as Dell Computer on price as well as other competitive tactics.

HP, said Fiorina, is on the offensive.

HP already has taken targeted price reductions in PCs and servers this year without taking a hit in its gross margins, she said.

"That's one of the things I mean when I say we are going on the offensive in the marketplace," she said. "We will continue to be more and more aggressive about keeping customers and winning customers."

Peter Blackmore, executive vice president of the HP Enterprise Systems Group, said HP has already proven it can improve margins while getting more price aggressive at the same time.

"We have dedicated attack programs [against our competitors in every region around the world," Blackmore said.

Fiorina added that HP's services divisions also will help the company compete against formable vendors like Dell.

"We are beating Dell by combining products with services," she said.

Another tactic in HP's arsenal is creative pricing for a combination of products and services, she continued..

"We can price on a per-seat basis rather than price [exclusively per product," she said.