People who were thinking about buying a HP-created PC can now breath a sigh of relief. The company officially announced today that after reviewing its options it has now decided to keep its Personal Systems Group (PSG) division in-house, instead of spinning off that part of HP to become a separate stand alone organization.
According to the official press release, HP's now completed review of the PC division " ... 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."
We always wondered why HP, which is still the world's number one PC maker, would even consider such a move to cut off a massive portion of its revenues and profits via a spin off of the PC division. Yes, the PC industry as a whole is at the moment dealing with some issues with growth due to several factors (the currently crummy economy, the rise of tablets and smartphones, the rise of Apple's Mac brand). But HP, quite frankly, needs all the help it can get and keeping the PC portion of its company could help turn it around in the long run.
Now that HP has announced it is sticking with its PC business, what's next? Will we see a revival of HP's consumer PC division? Will we see HP launch a new gaming PC subsidiary, like Dell has with Alienware? Will it release a new tablet device as a successor to the failed TouchPad and if so will it run on Microsoft's Windows 8? Stay tuned.