Sorry Dell, Lenovo and Acer: HP’s not abandoning the PC business after all. The world’s largest maker of PCs announced moments ago that after thinking long and hard about it, they’re going to keep on making computers after all.
New President and CEO Meg Whitman, recently elevated to the position from member of the board, said this in a press release Thursday:
“HP objectively evaluated the strategic, financial and operational impact of spinning off PSG [Personal Systems Group]. It’s clear after our analysis that keeping PSG within HP is right for customers and partners, right for shareholders, and right for employees. HP is committed to PSG, and together we are stronger.”
The evaluation of the business meant HP brought in experts from all the different departments at the company and crunched numbers. Only then did HP see “the depth of the integration that has occurred across key operations such as supply chain, IT and procurement.” That “data-driven evaluation” also showed “the significant extent to which PSG contributes to HP’s solutions portfolio and overall brand value.”
It wasn’t a given that HP would wind up at this conclusion. When HP’s board dumped Leo Apotheker as CEO last month and hired Whitman, both board chairman Ray Lane and Whitman publicly said they didn’t disagree with Apotheker’s general direction for the company, which included spinning off PCs.
At the time Lane said, “From what I know now, the strategy is right and the initiative we undertook on August 18 [is] right,” and Whitman said that while she supported the strategy, she would review all the initiatives.
What’s not readily apparent is what this means for the company’s huge bet on software and services with Autonomy, the deal on which it spent nearly all its cash, and if this makes them regret the debacle regarding WebOS.