Will HP's New CEO Cancel Plans to Spin Off PC Business?

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News Posted: Fri, Sep 23 2011 4:13 PM
Hewlett Packard made some major (and controversial) moves under the leadership of Leo Apotheker, the CEO that was just ousted. You have Mr. Apotheker to thank for your $99 TouchPad (and to curse for abandoning webOS hardware). He initiated a $10.3 billion cash acquisition of a U.K. software maker. But arguably his biggest move is in convincing HP's board to either spin off the company's Personal Systems Group business or sell it to the highest bidder. Now that Meg Whitman is taking Mr. Apotheker's place as CEO, is there any chance HP will keep its PC business, which is the biggest in the world?

According to reports, the answer is yes. Taiwan news and rumor site DigiTimes claims to have heard from "notebook makers" that there's a good chance HP will pull an about-face and hold onto its PC business. They also say HP is expected ship up to 38 million notebooks by the end of the year, and no less than 37 million.

HP needs to make a decision sooner rather than later. DigiTimes says some of its channel partners are starting to shift operations towards other brands, like Acer, Asus, Dell, and Lenovo. If HP were to call off its plans to sell or spin off its PC division, notebook makers say HP would again have the full attention of ODM partners like Quanta, Wistron, Foxconn, and others, as well as restore confidence among consumers.

So what will HP do? That's still being decided. On one hand, Ms. Whitman has already come out and said she's "supportive of the actions that were announced on August 18th," but also said HP is still exploring a possible spin off and will make a decision by the end of the year, if not sooner.

What do you think should do?
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AKwyn replied on Fri, Sep 23 2011 5:53 PM

Well obviously cancel the sale, restart WebOS development, get WebOS devices rolling again and just; hope for the best.


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I have to disagree, I think they made the right choice with webos(I like webos too). They have a better chance making windows8 tablets. With webos they had to provide the entire ecosystem which is ultimately what makes or breaks the product. What good is a touchpad without apps. With windows8 you have MS paying the bill to create that ecosystem and all hp has to do is to compete on the hardware side which they are already accustomed to with pcs/laptops. They also fired the webos team, how many of those people do you think are willing to come back on good terms?

Now you're just mashing it!

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NPirce replied on Fri, Sep 23 2011 6:17 PM

Maybe HP won't spin off the PC business after all?

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AKwyn replied on Fri, Sep 23 2011 6:23 PM

how many of those people do you think are willing to come back on good terms?

I don't know; but what I do know that HP had something going with WebOS; I mean just look at the Pre and other related stuff; even though it didn't sell alot as HP expected them to. The TouchPad they've made (even though it suffered some faults) was a good tablet and had it been priced more appropriately it could of sold a whole lot more and change WebOS's fortunes dramatically.

Even though Windows 8 would be HP's most likely choice, I don't want to see HP undercutting the company and the OS that they bought.


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omegadraco replied on Fri, Sep 23 2011 10:29 PM

I would hope they would reconsider the sale of the PC business. The fact is it was profitable so there really is no reason to sell it. Hopefully the earthquake that is occurring within HP does not have too many negative effects on the computing market.

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rapid1 replied on Sat, Sep 24 2011 1:08 AM

Yeah if you sell millions of any device type even if you have a slim profit margin your still making some real money here, I remember when I heard this I was wondering if someone had just gone insane. As for WebOS I have heard many good things about it. On the mobile front BB seems to be dieing iOS and Android hold the market I can see win 8 doing something but it is still not scheduled to be released until next year. SO unless this whole mobile war had just started there is still room for it. HP need to make some strong products (stronger than the Palm lines previously existent) and get to working with some others here. HP is a gargantuan company so it would not seem a crazy thing for it to not be to hard for them to get some partners for WebOS integration, not to mention they own a large chunk of several markets. I still think it could be done they just need to start yesterday if you get my drift.

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Ever since this nonsense of an idea started, I've been wondering "where will I go from here?" My Palm Pre Plus is aging rapidly, yet still does everything I need it to and my 4-5 touchstones are just begging for a Pre3 to come sit on them. HP get your *stuff* together and bring the best phone OS out to the masses and quit mulling around in the background wondering if there is any way into the market thru the hordes of ilemmings and now droidheads! I order all hardware for my medium size business and it eats me up inside thinking that all the HP laptops, desktops, and docking stations, etc. floating around could go the way of the dinosaur. When they first bought Palm, I didn't so much like the idea, but realized if there were ever a company that could bring WebOS out of the realm of obscurity they'd be the one. Please Meg and you corporate cronies get it together and start the production of Pre3 and Touchpad and at the same time hit the development of newer devices immediately to be ready in the trenches to thwart the next attack from crapple and the crapphone5! Competition breeds great things. *Sorry for the Rant,

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gazd1 replied on Sat, Sep 24 2011 12:26 PM

Well I think that they should keep their PC business, because they must make a profit out of it. Out of the 3 computers that I bought, only the business one lasted its warranty, while the other two personal computers did not. They have to make a profit, because I think that they're using real el cheapo parts & even seconds (not good enough for boxed processors, etc. Maybe equal to thirds rather than seconds) to put their computers together. So I think it is a thriving business & they sell heaps of pcs anyway.

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3vi1 replied on Sat, Sep 24 2011 2:52 PM

HP needs to re-focus on their core competency: Charging people $90 for less than an ounce of ink.

What part of "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn" don't you understand?


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gloriad1 replied on Sun, Sep 25 2011 6:44 AM

Well I second gazd1's post!Cool  I've come across other people that have owned HP personal computers and have thought the same way.Wink  In fact some now only lease their HP pc on a yearly basis.Wink

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