Moving in the right direction

09:03 AM Oct 28, 2011
SAN FRANCISCO – Hewlett-Packard ditched a plan to spin off its personal computers unit, a month after the ouster of CEO Leo Apotheker, whose idea would have cost billions of dollars in expenses and lost business.

New chief executive Meg Whitman, who replaced Mr Apotheker immediately, had vowed a quick decision on an issue that was beginning to alienate its PC partners, investors and customers.

Separating the PC unit would have cost the company US$1.5 billion (S$1.9 billion) in one-time expenses and another US$1 billion annually, it said.

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

“This is the most pragmatic decision and allows them to continue to leverage the end-to-end supply chain benefits,” said Gartner analyst Mark Fabi, adding that it also showed Ms Whitman’s decisiveness as CEO.

“Clearly this was missing over the past year,” he added.

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, Ms Whitman said the company was “stronger” with the unit. REUTERS
—————————————————————————-
Moving in the right direction

“HP is a world leader in the PC and technology market, it would be like killing the golden goose that helps you lay the golden egg by ditching your PC unit. To stay competitive HP needs to reinvest and stay relevant in this competitive global markets by concentrating more on the software side to create more innovative products.” – Contributed by Oogle.

Author: Gilbert Tan TS

IT expert with more than 20 years experience in Multiple OS, Security, Data & Internet , Interests include AI and Big Data, Internet and multimedia. An experienced Real Estate agent, Insurance agent, and a Futures trader. I am capable of finding any answers in the world you want as long as there are reports available online for me to do my own research to bring you closest to all the unsolved mysteries in this world, because I can find all the paths to the Truth, and what the Future holds. All I need is to observe, test and probe to research on anything I want, what you need to do will take months to achieve, all I need is a few hours.​

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.