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HP Reverses Course, Will Keep PC Unit

Thursday October 27, 2011 1:26 pm PDT by Eric Slivka
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.
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Arcus
72 months ago
They did a Netflix.
Rating: 37 Votes
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JBytes
72 months ago
I suppose we should expect the rebirth of the TouchPad next?
Rating: 25 Votes
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8CoreWhore
72 months ago
Executives get more money to fail than workers get their whole lives.

Their new PC line will be called Quickster.
Rating: 22 Votes
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Xian Zhu Xuande
72 months ago
Translation: "Thank God we got rid of that moron."
Rating: 21 Votes
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rdowns
72 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: 16 Votes
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neiltc13
72 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: 15 Votes
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usptact
72 months ago
The reason is money, not customers and what is right for them.
Rating: 12 Votes
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Mattie Num Nums
72 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: 12 Votes
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nagromme
72 months ago
“HP decides to keep making computers after all” is a headline I did not expect to see this year, outside of The Onion.
Rating: 10 Votes
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Savor
72 months ago

Amazing how many of these also-rans are finding themselves in a "damned of you, damned if you don't" position, after Apple showed up (first in 2007, then again in 2010) and turned everything upside down for so many players in the industry.

It isn't as if HP was doing anything remotely impressive in the consumer sector before all this happened. Just another generic box-maker trying to follow the course Apple set with limited success.

No vision. Nothing really inspiring. I wonder at what point HP became a massive yawnfest. No wonder Steve Jobs felt so sad for them.

Yet, HP was #1 in computer sales battling with Dell. Respect the pioneers of Silicon Valley. Steve Jobs actually cared about HP since he looked up to Bill Hewlett. That is one of the few companies he actually respected.

Companies like Apple wouldn't exist without IBM, HP, or Sony that were already successful BEFORE Apple was founded. We wouldn't have computers without IBM which holds the most patents. We wouldn't have iPod without the Walkman before it.

But your fanboy post sounds like nothing happened before 2007. Yet, evolution is based on building on the shoulders of people from yesteryear.
Rating: 10 Votes

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