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HP Reverses Course, Will Keep PC Unit

HP, the world's largest PC manufacturer, has announced that it has reversed course and will not sell off its PC unit. The company had announced in August that it would spin off the business, but with CEO Leo Apotheker having been ousted and replaced by former eBay CEO Meg Whitman, HP has reevaluated its plans.
“HP objectively evaluated the strategic, financial and operational impact of spinning off PSG [Personal Systems Group]. 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 Meg Whitman, HP president and chief executive officer. “HP is committed to PSG, and together we are stronger.”
According to The Wall Street Journal, HP's initial estimate of a $300-400 million cost to spin off the PC unit proved to be far too low, with further studies pegging the cost at closer to $1.5 billion. Combined with a strategic review that determined the level of integration across HP's business was deep enough that contributions from the PC unit would be missed, HP ultimately decided to keep the business in-house.

Top Rated Comments

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33 months ago
They did a Netflix.
Rating: 40 Positives
33 months ago
Executives get more money to fail than workers get their whole lives.

Their new PC line will be called Quickster.
Rating: 25 Positives
33 months ago
I suppose we should expect the rebirth of the TouchPad next?
Rating: 25 Positives
33 months ago
Translation: "Thank God we got rid of that moron."
Rating: 22 Positives
33 months ago

Maybe Meg will do alright after all.

I'm pleased with this.



She was part of the board that OK'd this originally. I give her credit for nothing.
Rating: 19 Positives
33 months ago
F up WebOS and the whole TouchPad effort (after promising the world.) Then admit you've got profit issues and announce you're looking for a buyer for your PC division. Put WebOS on hold and announce layoffs because no one's buying your tablet. Sell your tablet at a massive loss instead. Meanwhile, no one really wants your PC division (yesterday's ideas.) Then you flip-flop and say you want to keep it after all due to some cost issues and stuff you hadn't thought of before.

Avoid HP like swine flu. They obviously have no clue what the they're doing and cannot adjust to current market realities.
Rating: 18 Positives
33 months ago


Avoid HP like swine flu. They obviously have no clue what the they're doing and cannot adjust to current market realities.


They still make some of the best Servers on the market and are one of the biggest enterprise players. I think you forget that the technology market is more than just i devices and home computers.
Rating: 16 Positives
33 months ago

F up WebOS and the whole TouchPad effort (after promising the world.) Then admit you've got profit issues and announce you're looking for a buyer for your PC division. Put WebOS on hold and announce layoffs because no one's buying your tablet. Sell your tablet at a massive loss instead. Meanwhile, no one really wants your PC division (yesterday's ideas.) Then you flip-flop and say you want to keep it after all due to some cost issues and stuff you hadn't thought of before.

Avoid HP like swine flu. They obviously have no clue what the they're doing and cannot adjust to current market realities.


You've clearly ignored the change of CEO that reflects the change in the companies direction. Please pay attention to the facts reported, not the things you read between the lines.


I hope so, its actually the platform closest to being able to give iOS a run for its money...I say that as a neutral developer who owns a Touchpad and iPad - its a nice platform, just needs a little love!


It would be interesting to see if they reintroduce the Touchpad at a low price. I think they could get some good sales out of it.
Rating: 16 Positives
33 months ago

I'm surprised with how much Apotheker got away with.


$13,200,000 (http://www.computerweekly.com/Articles/2011/09/30/248032/Leo-Apotheker-pockets-13.2m-from-HP-despite-plummeting-share.htm).
Rating: 16 Positives
33 months ago
The reason is money, not customers and what is right for them.
Rating: 15 Positives

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