Rumor: HP analysts may recommend company keep PC business

Two months ago, HP announced that it was considering spinning off its massive consumer PC business into its own separate company. Such a move would create a new organization with over $40 billion in yearly revenue. Now The Wall Street Journal is reporting via unnamed sources that analysts working for the company have given the opinion that HP might be better off keeping the PC division in house. The idea to spin off the PC business was made under HP's now former CEO Leo Apotheker. However, Apotheker was kicked out of the job a few weeks ago by HP's board of directors and replaced by former eBay CEO Meg Whitman.

While Apotheker was in charge, HP made it clear that it was strongly considering a spin off of the PC business, even going so far as to run a national newspaper ad in September that explained its thinking on the matter. At that time HP said having the PC business as a stand alone company would allow it to be "a more agile organization to help us better anticipate change and quickly respond to customers."

But that attitude may have changed now that Whitman is in place. The Wall Street Journal claims that according to HP's analysts, spinning off the PC division could result in lower profit margins for some products. It could also reduce HP's buying power with the PC component makers along with making the PC supply chain more complicated. Whitman has already said that a final decision on the HP PC business would be made by the end of October.

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9 Comments

What the helll were they thinking?

"Are we still in the top 3? Oh, we are? Well, let's go ahead and **** that up."

The board at HP need to be bitch-slapped.

bjoswald said,
What the helll were they thinking?

"Are we still in the top 3? Oh, we are? Well, let's go ahead and **** that up."

The board at HP need to be bitch-slapped.

The CEO they just fired was the biggest moron the company has ever seen. Only a fool would have even considered dropping their PC division.

Everything Whitman and Lane said the day after they fired the SAP guy pointed in the direction of "We're keeping PC's", but with the caution of "We already spent a boat load of money with the group that's looking to see if it makes financial sense, so we're going to get what we paid for and keep the PC business anyway."

WebOS is at HP is dead. Palm phones would be 5th place in a three horse race (iOS, Android and WP7) and TouchPad would be 4th place in a three way race for tablets (iOS, Android & Windows 8). Makes more financial sense to ditch phones and partner with Microsoft on a kickass Windows 8 Tablet.

I don't think they'll dump it now, it would be a terrible decision. They got rid of the crazy CEO now they need to step back and steer the ship back on a proper course.

Wouldn't be surprised to see the touchpad make a resurgence in 7 inch form... after they finish all the firesale orders of the 10 inch version. They have a ton out in the hand of consumers... WebOS works very well for what I use it for (I anticipate someone will argue this) and most people aren't going to hack it to put android on it. Develop for it and make a push.

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