HP: Uh, on second thought, we’re going to keep our PC division

HP today announced that it has completed its evaluation of strategic alternatives for its Personal Systems Group (PSG) and has decided the unit will remain part of the company.

“HP objectively evaluated the strategic, financial and operational impact of spinning off PSG. It’s clear after our analysis that keeping PSG within HP is right for customers and partners, right for shareholders, and right for employees,” said Meg Whitman, HP president and chief executive officer, in the press release. “HP is committed to PSG, and together we are stronger.”

The strategic review involved subject matter experts from across the businesses and functions. The data-driven evaluation revealed the depth of the integration that has occurred across key operations such as supply chain, IT and procurement. It also detailed the significant extent to which PSG contributes to HP’s solutions portfolio and overall brand value. Finally, it also showed that the cost to recreate these in a standalone company outweighed any benefits of separation.

The outcome of this exercise reaffirms HP’s model and the value for its customers and shareholders. PSG is a key component of HP’s strategy to deliver higher value, lasting relationships with consumers, small- and medium-sized businesses and enterprise customers. The HP board of directors is confident that PSG can drive profitable growth as part of the larger entity and accelerate solutions from other parts of HP’s business.

PSG has a history of innovation and technological leadership as well as an established record of industry-leading profitability. It is the No. 1 manufacturer of personal computers in the world with revenues totaling $40.7 billion for fiscal year 2010.

“As part of HP, PSG will continue to give customers and partners the advantages of product innovation and global scale across the industry’s broadest portfolio of PCs, workstations and more,” said Todd Bradley, executive vice president, Personal Systems Group, HP. “We intend to make the leading PC business in the world even better.”

Source: Hewlett-Packard Development Company, L.P.

MacDailyNews Take: “PSG has a history of innovation and technological leadership?” Since when is cobbling together thick plastic slabs/fugly towers and slapping in another company’s upside-down and backwards Mac knockoff OS considered to be “innovation and technological leadership?” Give us a break, HP. You’re nothing but Dell by another name. About the only thing you’ve led on over the last several decades is how to wildly overcharge for printer ink cartridges.


  1. Business-wise, I think that was a smart decision to NOT dismember their limbs. They can still reap the profits of selling those boxes and in return invest in other ventures. If money is there, why not? In the end, fund new ventures. Good luck.

  2. …wildly overcharge for printer ink cartridges…

    Exactly! Not to mention:

    ..and to make printers that think the cartridges are empty while they’re more than half full (e.g., print 500 B&W pages with just ONE tiny yellow dot on a LaserJet and the printer will record 500 pages printed for EVERY color cartridge, NOT just for the B&W one).
    If you disable the feature, then the printer dumbs down and doesn’t report toner levels properly any more.

    What a rip-off

  3. Doesn’t matter. HP quality is junk. Their printers are junk, their laptops are junk, their towers are junk. They used to be a brilliant engineering company but they were taken over by people who know the cost of everything but the value of nothing. One whole line of HP printers doesn’t have a paper tensioner or a take up wheel that works… brilliant. BTW, what did they do to compaq?

  4. HP used to make great stuff. Now they sell crap. Their printers suck but their printer software is the worst trash known to man. Did I say their ink is horribly overpriced? Oh I forgot.

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