Friday, October 28, 2011

HP decides to maintain its personal computer division

The computer group Hewlett-Packard (HP), under the new leadership of Meg Whitman announced that finally keep its personal computer division although in August rid of it was raised to focus on producing software . Following a strategic review, HP saw its PC business area is a "key component" to the company and contributes "significantly" to the offer of solutions of the company and its brand value, as explained in a statement.

"HP is committed to PSG (Personal Systems Group, its PC division), and together we are stronger " , said President and CEO, Meg Whitman, who insisted that this decision is right for "consumers, partners, shareholders and employees. " On August 18 HP was announced that weighed options for its computer division, one of which was "the total or partial separation from that business." The news was in response falling to 22% of the shares of the company in the next trading day. Barely a month later, the board dismissed the CEO LĂ©o Apotheker, who after taking office in 2010 had sought to focus on the production of HP software. Whitman, executive of eBay and former candidate for governor of California Republican, replaced Apotheker September 22 to face what HP management considered a "critical moment." HP is the world's leading manufacturer of personal computers, a business that has been stalled globally and sees sales fall down from devices the novel tablet computer. HP without success this year launched its TouchPad tablet, which eventually removed from the shelves along with the rest of their products with WebOS operating system, designed for tablets and phones.

"Together we are stronger"

"It was clear after our analysis to keep the Personal Systems Group is right for our customers and partners, the right thing for shareholders and employees the right thing," he says in a note, which explains his decision. "Together we are stronger" clinched. Lenovo is now the second largest PC maker, according to Gartner followed by Dell.

The explanation, from the words of Whitman, is that the PC business is very engaged in the supply chain of the company and other operations of the firm in Palo Alto. But above all, the personal computer is the distinctive product of the HP brand. Another reason was said on the floor is the high cost of separation outweigh the benefits.

Apotheker's idea, however, relied more on his experience in SAP, specializing in business solutions. That is, in fact, the pillar on which rests the new IBM business model, which is much more profitable to manufacture electronic devices. The tablets and interactive phones are also eating the PC sales.

The challenge, therefore, for Whitman will find the model that allows HP to be profitable in a new market dynamic in which the consumer is changing the way you use the PC. That unit contributed to the company revenues of 40,700 million dollars in 2010. But Apotheker said, the effect of mobile devices "is real."


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