HP loves its PCs, wont sell the group to anybody

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.

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So, HP is going to stay in the PC business. Are they going to improve their support of device drivers? If you buy one with Windows-7; what assurance will HP give you that Windows-8 will run on it? Even within any warranty period if you install a newer OS, warranty service ends. They will only honor the warranty with the original OEM configuration.

Dell didn't "launch" a gaming PC subsidiary... they just bought Alienware. Alienware was an established company for a decade before Dell decided to buy.

lt8480 said,
Dell didn't "launch" a gaming PC subsidiary... they just bought Alienware. Alienware was an established company for a decade before Dell decided to buy.
Ya know, HP already owns Voodoo PC, they just haven't done anything with it in a few years.

Was this just a PR stunt or something? I thought shares fell when the initial idea hit the web, so I don't get what is going on.

Jaybonaut said,
Was this just a PR stunt or something? I thought shares fell when the initial idea hit the web, so I don't get what is going on.

Their previous CEO was a complete fool, that's about all there is to it. Now they've put someone less foolish in charge.

It is common sense but because Leo was an idiot, and he started the motions for it, so they had to pretend to still be interested until they can prove it is a stupid move even after he left.

The only reason this was even considered was them having a CEO that came from a software company. I'm glad they finally realized he was a moron and got him out of there.

It was a supremely stupid move from the get-go. So many of HP's other businesses are set up by its PC business. Would've been like killing the entire business.

Ayepecks said,
It was a supremely stupid move from the get-go. So many of HP's other businesses are set up by its PC business. Would've been like killing the entire business.

This. Apotheker was out of his mind, and I've got no idea why he thought it would ever be a good idea. It was a move akin to Apple stopping selling Macs, only more devastating. Had Apotheker remained in charge, HP would have been a dying/dead brand within 5 years.

Majesticmerc said,

This. Apotheker was out of his mind, and I've got no idea why he thought it would ever be a good idea. It was a move akin to Apple stopping selling Macs, only more devastating. Had Apotheker remained in charge, HP would have been a dying/dead brand within 5 years.

Last quarter Apple sold 37.11 million iPhones, iPads and iPods. And however many millions/billions of songs and apps from iTunes...

They sold only 3.95 million Macs in the last quarter. Whilst they might be profitable, Macs are hardly their main interest these days, I wouldn't be surprised at all if one day we saw them disappear.