HP to keep PC division

Written by Clive Webster

October 28, 2011 | 14:14

Tags: #can #kill #rumour #spin-off #webos

Companies: #hp

HP has confirmed that it will be keeping it PC division, despite strong indications that it would shed the business in August. In an official statement Meg Whitman, HP president and chief executive officer said ‘HP is committed to PSG [Personal Systems Group], and together we are stronger.

The decision comes after ‘HP objectively evaluated the strategic, financial and operational impact of spinning off PSG. It’s clear after our analysis that keeping PSG within HP is right for customers and partners, right for shareholders, and right for employees.

Part of the reason for the apparent U-turn on spinning off or ditching the PSG seems to be that it was too well integrated into HP’s other activities: ‘The data-driven evaluation revealed the depth of the integration that has occurred across key operations such as supply chain, IT and procurement.

It also detailed the significant extent to which PSG contributes to HP’s solutions portfolio and overall brand value. Finally, it also showed that the cost to recreate these in a standalone company outweighed any benefits of separation.

HP will therefore continue to be the top manufacturer of PCs, at least in terms of revenue ($40.7bn for the fiscal years 2010). Todd Bradley, executive vice president of PSG, also said, ‘We intend to make the leading PC business in the world even better.

There is no mention of WebOS or WebOS devices in the statement, so we must presume the decision to cease production of WebOS devices still stands.

Relieved to hear HP sees a profitable future in making and selling consumer PCs, or is this merely postponing the inevitable? Let us know in the forum.
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