HP Decides Against Selling PC Division

On 18 August the technology world was shocked to learn that

HP was planning on shelving webOS and all related products and was

planning on spinning off its PC business.

However, a statement released by HP today has revealed that it has

decided to keep hold of the PC division of the company, but there has been no

such luck for webOS, with that division set to be shut down with up to 500 job

losses.

HP 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.

“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,” said Meg Whitman, HP president and

chief executive officer. “HP is committed to PSG, and together we are

stronger.”

HP PSG Division Meg Whitman

Whitman (above), the former head of eBay, only took up the position

of president and CEO following Léo Apotheker’s resignation. It seems as if

Whitman’s appointment has ignited the turn around in relation to HP’s PC

division, which, with 17.7 per cent of the global market, is the biggest in the

world.

While the PSG division reported $40.7 billion in revenue for

2010, it is also the least profitable division within HP, which was no doubt the

reason behind the initial exploration of selling it.

“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,” said Todd

Bradley, executive vice president, Personal Systems Group, HP. “We intend to

make the leading PC business in the world even better.”

HP PSG Division Meg Whitman

While HP’s PC division has been given a reprieve, there

seems to be no chance of a repeat for webOS, the software which powered the

short-lived HP TouchPad and the Pre smartphones.

Top level executives at the webOS division have been leaving, with

one vice-president, Richard Kerris, resigning and joining Nokia a couple of

days later to head up Global Developer Relations. A webOS employee told the Guardian: “There’s a 95 per cent chance we all get laid off between now and November, and I for one am thinking it’s for the best.”

The future of HP is certainly still in the balance and it

will take more than this decision for Whitman to remedy the mistakes of her predecessor, but from our point of view, it is certainly a step in the right

direction.

Source: HP