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 HP reverses course, will keep PC unit

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PostSubject: HP reverses course, will keep PC unit   Thu Oct 27, 2011 7:28 pm

Hewlett-Packard Co. (HPQ-N27.091.345.20%) is retaining its personal computer unit following an extensive review that showed that a separation would have cost at least $1.5-billion (U.S.) in one-time expenses.

The retention of the PC business marks the latest flip-flop cheap jerseys in strategy as the company had said earlier that its preferred option was to spin out the business.

The world’s largest technology company by revenue stunned investors cheap soccer jerseys when it announced in August that it is considering strategic alternatives for its Personal Systems Group (PSG) – which includes PCs – and would kill its new tablet computer as part of a major revamping away from the consumer market.

The California company has been struggling in the PC market – a low-margin but high revenue business – as niftier gadgets such as Apple Inc.’s (AAPL-Q404.694.091.02%) iPad have lured consumers away.

Citing deep integration of the PC group in HP’s supply chain custom made jerseys and procurement, recently appointed chief executive officer Meg Whitman said the company was “stronger” with the unit.

Separating the PC business would have meant about mlb jerseys cheap $1.5-billion in one-time expenses including establishing the infrastructure such as new systems for IT, support, sales and channel operations, a company spokesman said.

The elimination of joint opportunities – such as branding and procurement – would have cost HP more than $1-billion annually, he said.

The decision to review the PC business was part of former cheap nfl jerseys CEO Leo Apotheker’s sweeping strategy that was not welcomed by investors. Ms. Whitman replaced Mr. Apotheker last month after the former SAP AG CEO struggled to halt a 50 per cent plunge in HP’s share price.

Ms. Whitman had promised a decision by the end of the month.
Some of the alternatives that HP was previously considering included hiving off the business into a separate company through a spin-off or sale.
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