HP to decide PC division's fate by end of October

Ever since mid-August, when HP announced that it was looking at alternatives for its PC division, the tech world has been wondering when the company will make its decision final. Reuters reports that HP's new CEO Meg Whitman told a conference on Tuesday that the company will reveal whether or not it will spin off the PC business by the end of October. Previously HP said, before Whitman came on board in late September, that the company would made this decision by the end of 2011.

In explaining this move, Whitman said, "I want to make that decision much faster than the previous CEO. Uncertainty is not our friend. People are wondering whether to buy HP products."  While HP has said in the past that it has been leaning towards spinning off the PC division, which is still the single biggest PC maker in the world, it has recently been hinting that it might decide to keep the PC portion of its business in-house.

Whitman said on Tuesday that she had a number of priorities in her quest to improve the troubled HP, saying, "I have quite a clear vision of what needs to be done here. After 35 years in business, I’m not in search of a manual." Whitman was previously CEO of eBay and more recently tried to become California's governor. Even that attempt helped her to take on the task of being in charge at HP, with Whitman saying, "I’m far better equipped to run HP today than I was had I not run for governor. I’m a lot tougher. I’ve got a skin that’s 100 times thicker than when I left eBay."

Report a problem with article
Previous Story

Samsung filing injunctions against iPhone 4S in France and Italy

Next Story

LA Noire development team to officially close its doors

15 Comments

Commenting is disabled on this article.

"I'm a lot tougher. I've got a skin that's 100 times thicker than when I left eBay."

I would argue, that the previous CEO was exactly this material...

It's either a brilliant idea or a complete disaster. The thing is the effect on the company won't be apparent for another 5-10 years while Meg Whitman collecting big checks.

Blah, Wtf is HP doing... Tablets are the new "in thing" but their power is no near the power of a laptop or a desktop.

I think HP will spin off the PC business, mainly because it seems to be a major problem for them. Those of us in the US PC repair business joke that HP stands for "have problems".

jwoodfin09 said,
I think HP will spin off the PC business, mainly because it seems to be a major problem for them. Those of us in the US PC repair business joke that HP stands for "have problems".

Oh, they're going to spin it off, but not because it's a problem. They're the number one PC manufacturer, and they still make a decent profit off their computers. The only reason they're spinning it off is because the PC industry has seen a decline over the years due to many things (recession, tablets, etc), but it's not a permanent situation for the industry. So what did HP's former CEO say? "Hey, we're going to become more profitable by getting rid of the PC business and focusing on the servers and services industry, since it's far more lucrative!"

Nevermind that this is a supremely stupid belief, since HP's B2B components are set up largely by its B2C components. This isn't like IBM at all, where they had an exceptional record in the B2B space for eons. HP's only recently began making inroads in that category.

Meg Whitman sounds like a great CEO.

There's very little profitable revenue in PC hardware these days (unless you house it in aluminum, stick an apple logo on it and throw on OS X). The market is also very different to what it was ten years ago -- as one famous former CEO put it, "we're now in a post PC era, whether we like it or not". Mobile devices are becoming increasingly popular, Netbooks are now a thing of the past, and tablet computers are noticeably impacting Notebook sales.

It simply makes sense for HP to sell its PC-retail arm and focus on professional services (i.e. EDS).

PCs are not going anywhere. Just because grandma wants to check her email on a tablet doesn't mean there aren't people who still want to do real work. Not to mention gaming; play on a dinky little screen with no mouse or keyboard? I don't think so.

TRC said,
PCs are not going anywhere. Just because grandma wants to check her email on a tablet doesn't mean there aren't people who still want to do real work. Not to mention gaming; play on a dinky little screen with no mouse or keyboard? I don't think so.

Oh I never said PCs are going disappear anytime soon. However, you would need to be very ignorant to not see the changes between now and say 10 years ago.

We are in transition, albeit, a very slow and long one. The demand for mobile connectivity continues to rise year after year, smartphones are becoming increasingly popular (I read somewhere that there's more mobile phones in Australia than the Australian population!), and popular PC makers are struggling - a quick Google search indicates that Dell, Acer etc are not meeting sales expectations.

By the way, gaming might be crap on tablets, but don't forget about gaming consoles... Yes some people don't like them, but you don't need a PC to be a gamer.

kizzaaa said,

By the way, gaming might be crap on tablets, but don't forget about gaming consoles... Yes some people don't like them, but you don't need a PC to be a gamer.

You do if the games you want to play are not available on consoles. ;-)

kizzaaa said,

By the way, gaming might be crap on tablets, but don't forget about gaming consoles... Yes some people don't like them, but you don't need a PC to be a gamer.

well it depends... because i dont know gamers who will or have paid HP what they can build themselves.

but if you see 99% of MMO are Windows only.
aion is the most popular games in korea,
Tera is fighting that and it might be popular when it comes to America/Europe.
Guild Wars 2 is what im gonna get and its really waited.
same with Blade and Soul. which people is crazy about, and they want it now.
WoW also can be added. which has also a mac version

and you can see korea and china developing moestly mmorpg free to play, and of course everyone likes free to play. and in every game i go, sometimes there is even a full server. like cabal when i used to play it.

even Asian internet gaming cafes will get like 19billion dollars this year.

and you can see games like starcraft which has huge tournaments and all.

all of this its played in desktop computers. of course not everyone likes playing PC games some only want something to get fun even if its a silly phone game.
and like i say, not every person who is a gamer will be like let HP build their system.

even when i go to Justin.tv you can see everyone even if they play in consoles they need a desktop computer to stream. or they stream and play videogames from their computer logically. so its like... for some it might work and for some its not necessary a full desktop. and some wont even get it from HP because they will build it themselves which is cheaper.

What's with this PC ship jumping there seems to be, I don't think we're anywhere near the point that a PC can be replaced, if ever really, they still use PC's in Star Trek...

I still think it would be a dumb idea. Why would the number one PC maker in the world decide to stop selling PCs? It's sort of like McDonald's deciding that they'll no longer sell burgers.

TRC said,
I still think it would be a dumb idea. Why would the number one PC maker in the world decide to stop selling PCs? It's sort of like McDonald's deciding that they'll no longer sell burgers.

It is one of those dumb ideas that sound brilliant in a presentation or in a graphic.