Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Business Briefing
24/7/365 Network Uptime
Average Rating:
Rate this article:  
HP Staying in the PC Business After All
HP Staying in the PC Business After All

By Barry Levine
October 28, 2011 11:04AM

    Bookmark and Share
The decision by Hewlett-Packard to keep the PC unit, said analyst Michael Gartenberg, raises a question about whether HP will also decide to keep its webOS operating system. Not long after the launch of HP's webOS-based tablet, the TouchPad, HP had said it would stop making that tablet and would largely abandon the OS.
 



Hewlett-Packard is staying in the PC business. That's the decision from new CEO Meg Whitman, who says she is keeping that division as part of the company. In August, the previous CEO, Leo Apotheker, had announced H-P was evaluating possibly selling or spinning off its PC division.

The HP Personal Systems Group generated almost a third of the company's $126 billion in revenue last fiscal year. Whitman told The New York Times: "First and foremost, HP is a hardware company. We want to build out our software, but I don't think we are done yet on hardware."

$40.7 Billion in 2010

In a statement, the company said it had "completed its evaluation of strategic alternatives to its Personal Systems Group" and had decided to keep it.

H-P said its evaluation had involved subject-matter experts across the company's businesses and functions, which had revealed "the depth of the integration" of PSG in the supply chain, IT, and procurement, as well as the "significant extent" to which the unit contributes to HP's solutions portfolio and overall brand. The evaluation also showed that the cost to spin it off outweighed the benefits.

Some of those assessed benefits, according to news reports, include maintaining a diverse line of products, getting better deals on components and remaining a major hardware company. Whitman has also said that spinning off the PC unit would have meant a charge of $1.5 billion in one-time expenses and $1 billion annually in ongoing costs for maintaining similar functions, not to mention that the spun-off or sold company could have become a competitor for H-P's remaining products.

The announcement by Apotheker had taken the computer industry by surprise, particularly because H-P is the top manufacturer of personal computers in the world, with revenue of $40.7 billion in 2010. Apotheker was ousted as CEO in September, and replaced on Sept. 22 by former eBay CEO Whitman. This is her first major, announced decision.

'A Roller-Coaster Ride'

Michael Gartenberg, research director at Gartner, said the on-again, off-again decision about the PC unit "has been a bit of a roller-coaster ride" for the company, especially as many outside observers believed H-P should remain in that business.

He added that Apotheker's announcement had seemed "too hasty," in that he announced they were planning to get rid of the PC division, but did not announce any plans about what was going to happen to it.

The decision to keep the PC unit, Gartenberg said, raises a question about whether the company will also decide to keep its webOS operating system. Not long after the launch of its webOS-based tablet, the TouchPad, H-P had said it would stop making that tablet and would largely abandon the OS.

In a call with analysts Thursday, Whitman said the company would build tablets running Microsoft's coming Windows 8 operating system, and that those tablets would become available next year. The company said it never intended to give up on Windows tablets.

Company officials indicated the webOS decision could be revisited, as well, within the next few months.
 

Tell Us What You Think
Comment:

Name:





 Business Briefing
1.   Facebook 2Q Earnings, Revenue Soar
2.   Nokia's Post-Handset Future Is Bright
3.   Twitter Admits to Diversity Problems
4.   Texas Startup Fund Not All It Seems
5.   FDA OKs New Opioid Pain Reliever


advertisement
Backlash Stirs Against H-1B Visas
Debate over foreign workers continues.
Average Rating:
Apple Digital Book Settlement Set
But company still appealing decision.
Average Rating:
Radical.FM's Freemium Biz Model
Online radio startup asks for donations.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Researchers Working To Fix Tor Security Exploit
Developers for the Tor privacy browser are scrambling to fix a bug revealed Monday that researchers say could allow hackers, or government surveillance agencies, to track users online.
 
Wall Street Journal Hacked Again
Hacked again. That’s the story at the Wall Street Journal this week as the newspaper reports that the computer systems housing some of its news graphics were breached. Customers not affected -- yet.
 
Dropbox for Business Beefs Up Security
Dropbox is upping its game for business users. The cloud-based storage and sharing company has rolled out new security, search and other features to boost its appeal for businesses.
 

Enterprise Hardware Spotlight
Tablet Giants Apple and Samsung Feel the Heat
When a company saturates its home market with a once-hot product, expect it to pump up efforts elsewhere. Apple, for its part, is now pushing iPads to big corporations and the enterprise market.
 
Microsoft Makes Design Central to Its Future
Over the last four years, Microsoft has doubled the number of designers it employs, putting a priority on fashioning devices that work around people's lives -- and that are attractive and cool.
 
Contrary to Report, Lenovo's Staying in Small Windows Tablets
Device maker Lenovo has clarified a report that indicated it is getting out of the small Windows tablet business -- as in the ThinkPad 8 and the 8-inch Miix 2. But the firm said it is not exiting that market.
 

Mobile Technology Spotlight
Tablet Giants Apple and Samsung Feel the Heat
When a company saturates its home market with a once-hot product, expect it to pump up efforts elsewhere. Apple, for its part, is now pushing iPads to big corporations and the enterprise market.
 
Is the Amazon Fire Phone a Winner?
A late entry into a packed category of smartphones, Amazon's Fire phone offers a variety of unique features. Now, the reviewers are assessing if they're enough to make the phone stand out.
 
Review: Amazon Fire Offers New Ways To Use Phones
The Fire phone uses Android, but Amazon has modified it to the point that it's barely recognizable. That means the phone offers new ways to navigate, discover and, of course, shop.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.