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HP has second thoughts on spinning out PC business

updated 07:50 pm EDT, Tue October 11, 2011

New HP CEO may keep PCs in-house after all

New HP CEO Meg Whitman's accelerated review of the fate of its PC business may see her change her mind, insiders detailed Tuesday. Advisors on the subject have told the new executive that the costs of breaking out the group into a separate company might be more than the cost savings, the WSJ heard. Shedding the PC business would hurt HP's ability to get low prices on its remaining hardware and would cut into the profits of what was left.

No decision has been made so far on the business, they said. Whitman has only said so far that she wanted to have a decision made by the end of October. A decision on what to do with webOS hardware and software, if any change, also hasn't been mentioned.

HP itself hasn't confirmed any details.

A decision to keep the PC business would be a reversal of the course that Whitman had mentioned just hours after taking over from fired CEO Leo Apotheker. She triggered confusion when she planned to maintain Apotheker's plans despite many presuming that his decisions on PCs and mobile were the very reasons he was forced out. He had contended that the sudden departures were necessary as the iPad was making business untenable, although many have interpreted his real aim as trying to recreate the services-only business he knew from his earlier post at SAP.

If HP keeps its PC business, it's likely to disappoint rival computer makers like Apple and Dell. A separated HP PC division wouldn't have had the brand identity or financial safety net it does now, giving others a chance to dethrone HP from its current lead.



By Electronista Staff
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Comments

  1. graxspoo

    Fresh-Faced Recruit

    Joined: Nov 2008

    +7

    These people are not bright, yet highly paid

    The execs of HP and Netflix should get together and see which one can jump over two layers of match boxes. I could run these companies into the ground for quite a bit less. It seems we're developing some new inbred CEO aristocracy. They know how to drone on and on, but haven't a clue what their customers expect from them.
    http://www.youtube.com/watch?v=k5ba1OKY7Xc

  1. climacs

    Junior Member

    Joined: Sep 2001

    +6

    proof that ayn rand

    had her head firmly up her patootie... these are not the 'producers', the people who carry the world on their shoulders. These are the plutocrats who get their highly-paid positions thanks to cronyism not talent and achievement.

  1. facebook_Robert

    Via Facebook

    Joined: Oct 2011

    +4

    Has nothing to do with Ayn Rand

    I'll give you high points for being completely random with your Ayn Rand comment. But Ayn Rand would be highly critical of today's crony capitalism - she was a fierce critic of that, if you had bothered to understand her works at all. She believed in creative individualism. She'd be proud of Steve Jobs, and highly suspicious of anyone who didn't get where they are through achievement, but through connections or networking.

  1. facebook_Robert

    Via Facebook

    Joined: Oct 2011

    +4

    earth to climacs

    In Atlas Shrugged - James Taggart, the CEO of Taggart Transcontinental Railroad - was one of the main villains of the story. Ayn Rand's point was not that you should emulate James Taggart - far from it, she portrayed him as a blood sucking leach and she killed him off in the book.

    Geezuz man, I know someone told you Ayn Rand was an apologist for big business, but maybe you should think for yourself?

    Apple computer is big business - you don't love it because its big business, you love it because they do things right.

    OK, enough defending Ayn Rand, she's dead, and who cares. lol. She had a point, you missed it. Look, her books are about 1,000 pages long and she repeats her points 500 times per page.


    If you missed it, you missed it. You aren't getting it now.






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