Hewlett - Packard has decided to keep its PC division after the company spill in late workweek about spinning it off .
HP on Thursday announce that its Personal Systems Group ( PSG ) , which deals in PCs , smartphones and tablets , will detain with the company .
Keeping PSG within HP is “ right-hand for customers and partners , right for shareholders , and right for employee , ” Meg Whitman , HP ’s Chief Executive and CEO , said in a affirmation .
HP deport a strategic reassessment of the group before deciding to keep it , the party tell in a press release . HP decided that PSG is a primal portion of HP ’s endeavor to create farsighted - terminal figure relationships with consumers , including job , the company articulate .
Under former CEO Leo Apotheker , HP in mid - August enjoin it wouldexplore the sale or spinoff of the PSG . For HP , a slowdown in PC sales and its razor - slender allowance became a drag as the company emphasized more profitable line field such as endeavour computer software , service and computer hardware . HP also say then that it would kill webOS smartphones and tablet , and a buying frenzy ensued after HP sell stay TouchPad tablets starting at $ 99 .
HP prefer the thought of spinning off PSG , launch a safari for a separate PC company it tag a “ $ 40 billion inauguration . ” On her first day as CEO , Whitman , who replaced Apotheker , suppose the society would spin off the PC unit by the remnant of the twelvemonth . The decision was “ exclusively based on the value to investors and time value to customers , ” Whitman enunciate .
But some analyst read that if HP wanted to improve its profit margins , the PC business had to be the first domino to go down . With personal computer payload dropping and HP having no decipherable nomadic strategy , it would make sense to refocus the society ’s attention on eminent - leeway initiative business organisation , much like IBM did when it completed the sale of its PC unit to Lenovo in 2005 , they say .
