HP will keep PC division, hope alive
There's been plenty of speculation about what the future holds for HP and its Personal Systems Group -- a group that CEO Leo Apotheker seemed intent to shed -- but the crew now led by CEO Meg Whitman has just confirmed that division is staying home, where it belongs. Meg says the company "objectively evaluated" the idea of spinning PSG off but decided that keeping it in-house is "right for customers and partners, right for shareholders, and right for employees." Or, maybe her reserve wasn't met. Either way, the press release after the break goes on to confirm that the board believes PSG will continue to "drive profitable growth" in these challenging times. Maybe good 'ol Leo was right when he said "You still need larger machines to handle heavy-duty tasks." Heavy indeed.
Update: Oh, and in case you had any doubts, HP is actually going to use Windows 8 (when available) to make its tablets appealing. And now you know.
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HP to Keep PC Division
Continued combination of HP and its Personal Systems Group expected to deliver greater customer and shareholder value
PALO ALTO, Calif.--(BUSINESS WIRE)--HP (NYSE:HPQ) today announced that it has completed its evaluation of strategic alternatives for its Personal Systems Group (PSG) and has decided the unit will remain part of the company.
The strategic review involved subject matter experts from across the businesses and functions. 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.
The outcome of this exercise reaffirms HP's model and the value for its customers and shareholders. PSG is a key component of HP's strategy to deliver higher value, lasting relationships with consumers, small- and medium-sized businesses and enterprise customers. The HP board of directors is confident that PSG can drive profitable growth as part of the larger entity and accelerate solutions from other parts of HP's business.
PSG has a history of innovation and technological leadership as well as an established record of industry-leading profitability. It is the No. 1 manufacturer of personal computers in the world with revenues totaling $40.7 billion for fiscal year 2010.
"As part of HP, PSG will continue to give customers and partners the advantages of product innovation and global scale across the industry's broadest portfolio of PCs, workstations and more," said Todd Bradley, executive vice president, Personal Systems Group, HP. "We intend to make the leading PC business in the world even better."
More information is available at www.hp.com/investor/PSG-Decision.
