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Brier Dudley's blog

Brier Dudley offers a critical look at technology and business issues affecting the Northwest.

October 27, 2011 at 1:31 PM

HP staying in PC business, drama over for now

The world’s largest PC maker has decided to keep making PCs after all.

Hewlett-Packard just announced that it has decided not to jettison its Personal Systems group, ending a bizarre public parade of self-doubt that began in August and led to the ouster of its chief executive, Leo Apotheker.

Competitor Michael Dell recently made the best argument for HP staying in the business. He said HP’s servers would get more expensive because the PC business gives companies like HP and Dell the scale to get deals on components.

HP’s new chief executive, Meg Whitman, issued a statement today saying that the company has “completed its evaluation of strategic alternatives for is Personal Systems Group 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,” Whitman said in the release. “HP is committed to PSG, and together we are stronger.”

The company’s PC business is profitable and had sales of $40.7 billion last year. It also has recently been growing faster than the rest of the PC industry, which is in a period of relatively slow growth.

HP is also one of Microsoft’s largest customers and one of the largest tech companies in the Northwest, with offices in Seattle and large facilities in Boise and Corvallis.

HP’s statement said “the outcome of this exercise reaffirms HP’s model and the value for its customers and shareholders.”

Comments | Topics: enterprise, HP, Microsoft

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