In August when HP announced the discontinuation of WebOS, they also hinted that the company’s “board of directors [had] authorized the exploration of strategic alternatives for its Personal Systems Group (PSG).” Well last week the speculation concerning HP’s decision to spinoff their consumer-oriented hardware division to solely focus on software development can be put to rest. A new press release–in full after the break–reveals the company’s intention to keep the PC division under the same roof. HP executive Todd Bradley on the matter: “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. We intend to make the leading PC business in the world even better.” Former eBay CEO Meg Whitman is now the head of HP and she believes that keeping the PC division where it is ultimately is “right for customers and partners, right for shareholders, and right for employees.” And that settles the matter.
[Via Engadget]
HP to Keep PC Division
Continued combination of HP and its Personal Systems Group expected to deliver greater customer and shareholder value
PALO ALTO, Calif.–(BUSINESS WIRE)–HP (NYSE:HPQ) today 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.
The strategic review involved subject matter experts from across the businesses and functions. The data-driven evaluation revealed the depth of the integration that has occurred across key operations such as supply chain, IT and procurement. It also detailed the significant extent to which PSG contributes to HP’s solutions portfolio and overall brand value. Finally, it also showed that the cost to recreate these in a standalone company outweighed any benefits of separation.
The outcome of this exercise reaffirms HP’s model and the value for its customers and shareholders. PSG is a key component of HP’s strategy to deliver higher value, lasting relationships with consumers, small- and medium-sized businesses and enterprise customers. The HP board of directors is confident that PSG can drive profitable growth as part of the larger entity and accelerate solutions from other parts of HP’s business.
PSG has a history of innovation and technological leadership as well as an established record of industry-leading profitability. It is the No. 1 manufacturer of personal computers in the world with revenues totaling $40.7 billion for fiscal year 2010.
“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.”
More information is available at www.hp.com/investor/PSG-Decision.