Hewlett-Packard No Longer Selling PC Business
Hewlett-Packard took its personal computer unit off the market Thursday, indicating that it will hold on to its struggling Personal Systems Group instead of selling it. The company shocked investors and the tech industry on August 18th when it said it was exploring strategic alternatives for the unit, which is mainly comprised of the world's largest PC business. A sale of the unit was reportedly one of the alternatives being explored.
Thursday, however, the company's new CEO Meg Whitman said the option had been pulled off the table. "It's clear after our analysis that keeping the Personal Systems Group within HP is right for customers and partners, right for shareholders, and right for employees," Whitman said in a written statement to the media. The statement indicated that it has been determined that the PC business is too ingrained into various key HP operations and its supply chain to let it go. PC also help to promote the company's brand name, and a vital part of its "one-stop-shop" variety of services that are a selling point for corporate customers.
In addition to the benefits of hanging on the PC unit, HP has also determined that the cost of spinning off the unit would far outweigh any benefit of dropping the division. The decision to explore selling the business was actually made by Whitman's predecessor, Leo Apotheker, before he stepped down in August. Apotheker favored the company's fast-growing software and server businesses over the lower profit margin PC selling unit.
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