This Just In: HP Staying In The Personal PC Business

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News Posted: Thu, Oct 27 2011 5:08 PM
Perhaps it's not a major surprise that Meg Whitman is making a stamp on the future of HP by not acting impulsively, but still, pulling the company's massive personal computing devision back from the brink is newsworthy in the finest sense of the word. While it's not quite as jarring as the thought of reviving webOS, HP has 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.

Meg Whitman, HP president and chief executive officer, offered the following comments: "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. HP is committed to PSG, and together we are stronger."

Those are bold words. Words that will no doubt be attributed to her for years to come. This marks a monumental day in the direction of HP. After evaluation, HP found that the cost to recreate these in a standalone company outweighed any benefits of separation. It is the No. 1 manufacturer of personal computers in the world with revenues totaling $40.7 billion for fiscal year 2010, so one may wonder why they ever considered busting it out in the first place.

Not like it matters now. Todd Bradley, executive vice president, Personal Systems Group, HP, offered the following: "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. We intend to make the leading PC business in the world even better."

Looks like HP better get those supply channels cranking in the lead-up to the holiday sales season. If they're in, they might as well be in it to win it.
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RTietjens replied on Thu, Oct 27 2011 5:12 PM

Too late to backpedal, HP. No one in his right mind is going to trust you to stay in the PC business now, and you can't sell a PC with no support for the same price that Dell does. Give me a $99 Touchpad, and I don't expect support; try to sell it for $500 or more, and only a fool would trust you to support it after you

've said you're getting out of the business.

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AKwyn replied on Thu, Oct 27 2011 5:27 PM

Thank. You... I mean that decision was the worst decision in the history of decisions. How it was going to work out for HP, well it wasn't that much of a mystery but I'm just glad HP has it's computer division back and I hope that it can keep on doing what it has been doing for years, producing computers.


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omegadraco replied on Thu, Oct 27 2011 10:18 PM

We will see what happens with this at the rate that HP has been chewing through executives we cannot predict their future. I am glad though they made the right decision to keep this profitable portion of their business within the company.

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This is good news HP is a staple in the PC business. Although imo they are known for their printers I am glad they are staying in the PC business.

Kudos HP

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