HP has a change of heart opts to keep PC business

first_imgIn a surprising bit of news, Hewlett-Packard (HP) has done an about-face and decided not to ditch its PC business after all. New CEO Meg Whitman said that the reversal came down to research data, which indicated that the projected damage to its supply chain and procurement was going to be too great.They had originally decided to spin-off and sell Personal Systems Group, their once-booming PC business, and focus on enterprise. The move was similar to that of IBM in 2005, who spun off their PC business and sold it to Lenovo. HP’s decision to spin off PSG was in August, under then-CEO Leo Apotheker. He has since been replaced by former eBay CEO Meg Whitman. On arrival, Whitman vowed to continue along this course, but apparently she had a change of heart.The company claims that Hewlett-Packard stands by Personal Systems Group, and that it will continue to evolve. Todd Bradley, executive vice president of Personal Systems Group, said “We intend to make the leading PC business in the world even better.”What does this mean for HP? It’s possible that they didn’t find any interested buyers of the PC division. It also wasn’t likely to benefit shareholders to spin it off. Personal Systems Group is still profitable, so perhaps what it comes down to is that keeping it offers the path of least resistance. The about-face also sounds like it was motivated by their experiencing unexpected supply chain problems due to the decision. HP, after all, can offer a one-stop-shop for businesses looking for solutions, and without their hardware arm that would not have been possible.Nothing was mentioned of the mobile division, so this doesn’t appear likely to change the previous decision to drop WebOS and cease smartphone and tablet production. As Android’s, iOS’, and even Windows Phone’s app libraries are rapidly maturing, the WebOS ecosystem is probably too far behind to bother jumping back into the fray. So sorry, guys, this probably won’t lead to more $99 Touchpads.Full release at BusinessWirelast_img

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