Putting Rumors to Rest: HP Announces it will Keep its PC Division
By Karla Robinson
October 28, 2011
October 28, 2011
- HP announced this week that it is keeping its PC division, despite recent rumors to the contrary.
- The company’s Personal System Group was the world’s leading manufacturer of personal computers for fiscal year 2010.
- “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,” explained Meg Whitman, HP president and CEO, in a press release.
- The decision followed a data-driven evaluation that indicated PSG’s deep integration across the supply chain, IT and procurement. “It also detailed the significant extent to which PSG contributes to HP’s solutions portfolio and overall brand value,” suggests the release. “Finally, it also showed that the cost to recreate these in a standalone company outweighed any benefits of separation.”
- Forbes contributor John Furrier has been railing against HP getting rid of its PC division, citing its strong potential to “morph into smartphones, tablets, future laptops, etc.”