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HP Decides Keeping PC Business More Cost Effective Than Dropping It

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HP Decides Keeping PC Business More Cost Effective Than Dropping It
[ Business]

A couple months ago, HP announced it was exploring options for spinning off its PC business, but has now announced that it will keep it instead.

In a statement, the company said it has completed its evaluation of strategic alternatives for its Personal Systems Group (PSG), and has decided that the unit will remain part of the company.

“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,” said President and CEO Meg Whitman. “HP is committed to PSG, and together we are stronger.”

Whitman was appointed to her position last month, replacing Leo Apotheker after just a year in the role.

The company says the strategic review involved “subject matter experts from across the businesses and functions,” and that “data-driven evaluation revealed the depth of the integration that has occurred across key operations such as supply chain, IT and procurement.”

The evaluation, HP says, also detailed the significant extent to which the PSG unit contributes to the company’s portfolio and overall brand value.

Yeah, I can see that.

HP added that the cost of recreating these things in a standalone company outweighed the benefits of separation.

“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, EVP of HP’s Personal Systems Group. “We intend to make the leading PC business in the world even better.”

Last year’s revenues for PSG totaled $40.7 billion.

HP Decides Keeping PC Business More Cost Effective Than Dropping It
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    I wondered about this when they announced they were dropping that part of their business. It is like the tablet they made. They put it on clearance and it sold out in days and know they are making more. Makes you wonder what they are thinking in the head office.