HP decides to keep PC division

Reuters News
Posted: Oct 27, 2011 4:33 PM
HP decides to keep PC division

SAN FRANCISCO (Reuters) - Hewlett-Packard said on Thursday it has decided to retain the personal computer unit following an extensive review of the high volume but low-margin business.

The retention of the PC business marks another flip-flop 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 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.

Citing deep integration of the PC group in HP's supply chain and procurement, recently appointed Chief Executive Meg Whitman said the company was "stronger" with the unit.

Some of the alternatives HP was exploring for the PC unit included hiving off the business into a separate company through a spin-off or sale.

(Reporting by Poornima Gupta; editing by Gunna Dickson)