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HP Reverses Course, Will Keep PC Unit

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Original poster
Apr 12, 2001
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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."
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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.

Article Link: HP Reverses Course, Will Keep PC Unit
 
Article Link
https://www.macrumors.com/2011/10/27/hp-reverses-course-will-keep-pc-unit/
8CoreWhore

8CoreWhore

macrumors 68030
Jan 17, 2008
2,653
1,191
Tejas
Executives get more money to fail than workers get their whole lives.

Their new PC line will be called Quickster.
 
S

scottwaugh

macrumors 6502
Jul 22, 2002
359
12
Chicago
JBytes said:
I suppose we should expect the rebirth of the TouchPad next?
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This is a very good question. Since they're keeping the PC unit will Meg decide to invest serious money and time to gain a foothold in the burgeoning tablet market that only Apple has cracked?

Looking long term, if they are going to be in the market it would seem they'd want to...but we'll see what happens.
 
R

rudigern

macrumors member
Apr 20, 2010
75
104
Sounds like an awesome time not to invest in HP. All these changes and changes of changes must be hurting their stock.
 
Xian Zhu Xuande

Xian Zhu Xuande

macrumors 6502a
Jul 30, 2008
941
128
rudigern said:
Sounds like an awesome time not to invest in HP. All these changes and changes of changes must be hurting their stock.
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HP's stock has been hit hard by recent mistakes. If a person believed that recent changes were setting the course in a positive direction and potentially enabling the company to turn things around this would be a fantastic time to invest. If a person felt these changes were not going to help, then no, they shouldn't invest. I've got doubts myself given that I don't expect anything exceptional from the new leadership. Change alone is not reason enough to avoid investment. Heck, imagine the amount of change taking place when Steve returned to Apple.
 
Mattie Num Nums

Mattie Num Nums

macrumors 68030
Mar 5, 2009
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Rumor has it this was all a move based on Taxes or something to that effect. That is why HP split its business. I heard this from one of our inside sales analysts.
 
*LTD*

*LTD*

macrumors G4
Feb 5, 2009
10,703
1
Canada
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.
 
R

rmwebs

macrumors 68040
Apr 6, 2007
3,140
0
JBytes said:
I suppose we should expect the rebirth of the TouchPad next?
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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!
 
boss.king

boss.king

macrumors 603
Apr 8, 2009
6,142
6,900
*LTD* said:
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.
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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.


rmwebs said:
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!
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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.
 
K

KPOM

macrumors P6
Oct 23, 2010
18,031
7,872
They should have kept Mark Hurd. He's the only CEO they had in the past decade who had a clue about where to take the organization.
 
Mattie Num Nums

Mattie Num Nums

macrumors 68030
Mar 5, 2009
2,834
0
USA
*LTD* said:
Avoid HP like swine flu. They obviously have no clue what the they're doing and cannot adjust to current market realities.
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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.
 
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